Reassurance please?

WoodsterT

Hi,

Not to do with me, but my parents.

They have been divorced for two years now. A few months before my Dad left, he had taken out a joint loan for £10,000 - forging my Mum's signature to show she had agreed to this (she had no knowledge of the loan whatsoever) although obviously we were never able to dispute this and prove otherwise.

Anyway, part of the divorce settlement was an agreement that Mum was indemnified from the loan and Dad had to pay the full amount off. This had been done and dusted and no more had been brought up about it for two years until today when she had a phone call from Blackhorse, saying they were chasing payments from her as Dad had stopped paying. The person she spoke to was, I thought at least, outrageous in that he was refusing to disclose any information to my Mum other than the lines of "There's something going on with him right now so we can't chase him, so we're coming to you." - needless to say this had distraught her greatly.

I then phoned them back after and had spoken to somebody else, who - would you believe it - disclosed all the information without a problem, revealing that Dad is infact insolvent/in IVA (??) - I had made it clear to them that we had a signed document from the solicitor detailing the agreements in the divorce settlement, referring to the indemnity and that Dad was to pay the loan off. All dealt with with them and a 'nice' phonecall, so the solicitors will be phoned on Monday as they now have to write to Blackhorse - that's all Blackhorse had said on the phone, nothing more - "We need them to write to us."

My question is, what happens with Mum? I thought indemnity was that she was 'protected'/no longer liable for the loan under any circumstances, regardless of the situation Dad is in - he has to pay it off. Am I wrong? Will Mum have to be stung for this due to his mess?

Sorry this is a bit 'airing dirty laundry' and long but I'm not a pro at these forum posts, just feeling a bit stressed as £4,000 (the amount in arrears) is something my Mum doesn't have and I'm worried for her.

Thanks,

chalkie99

WoodsterT wrote: »

part of the divorce settlement was an agreement that Mum was indemnified from the loan and Dad had to pay the full amount off.

That sounds like it might be an agreement between your parents via a solicitor but, unless the lenders were party to the agreement, it is still a joint loan and the solicitors agreement does not protect your mother if your father defaults

WoodsterT

chalkie99 wrote: »

That sounds like it might be an agreement between your parents via a solicitor but, unless the lenders were party to the agreement, it is still a joint loan and the solicitors agreement does not protect your mother if your father defaults

I see. Cheers, not trying to make out "I'm right they're wrong" I just wanted to be sure so I'm prepared for the fallout, haha.

Thanks.

robatwork

It's pretty unpleasant for you that you have to be caught up in this mess that is nothing to do with you.

As you obviously are in the middle, can't you approach your father about it? He may have a completely different story about this loan or his status....

Becka38940

I would agree with what Chalkie said.

What happens between your parents is of no interest to Black Horse, if they're not getting paid from one party - as long as the other person signed an agreement they will pursue them as they remain legally liable.

Although unfortunate it happens and is the difficult thing perhaps not explained well enough by solicitors.

bigadaj

The agreement between your parents won't hold any water with the lender. Your mother has a choice either to see if the lender accepts the situation, which isn't likely or reports the matter as fraud. The latter may get her out of the debt but obviously sets up your father for a potential criminal prosecution, those seem to be the choices, as well as simply paying up of course.

antrobus

WoodsterT wrote: »

....My question is, what happens with Mum? I thought indemnity was that she was 'protected'/no longer liable for the loan under any circumstances, regardless of the situation Dad is in - he has to pay it off. Am I wrong? Will Mum have to be stung for this due to his mess?...

You are wrong. Sort of.

The 'indemnity' is a binding promise by your Dad to cover any payments Mum may have to make in respect of the Blackhorse loan. Which is important.

As previous posters have suggested, Blackhorse were not party to your parent's divorce so, as far as they are concerned, it's a joint loan and Mum is just as liable as Dad.

However due to the indemnity, Dad would be liable to repay Mum. Of course Dad may be 'insolvent', (it would be good to clarify the exact status) but that might not prevent Mum from getting the money back. (Eventually.) Even bankruptcy frequently is held to have no effect on liabilities arising from a divorce .

Debts arising from family proceedings (aka divorce) are not provable in bankruptcy. Dad would need to persuade a court to exercise its discretion to release him from the liability. But ask a real solicitor for a real answer.

Gaz83

antrobus wrote: »

You are wrong. Sort of.

The 'indemnity' is a binding promise by your Dad to cover any payments Mum may have to make in respect of the Blackhorse loan. Which is important.

As previous posters have suggested, Blackhorse were not party to your parent's divorce so, as far as they are concerned, it's a joint loan and Mum is just as liable as Dad.

However due to the indemnity, Dad would be liable to repay Mum. Of course Dad may be 'insolvent', (it would be good to clarify the exact status) but that might not prevent Mum from getting the money back. (Eventually.) Even bankruptcy frequently is held to have no effect on liabilities arising from a divorce .

Debts arising from family proceedings (aka divorce) are not provable in bankruptcy. Dad would need to persuade a court to exercise its discretion to release him from the liability. But ask a real solicitor for a real answer.

This is my take on it too.

From Blackhorse's point of view, your mum is legally required to make payment.

From your mum's point of view, your mum *may* be entitled to claim back any moneys from your dad. I say *may* be, because if your dad is insolvent, he may not have the funds to pay your mum back - she would become just another creditor.

Your best bet is to contact a solicitor - perhaps the same one who helped you draw up the indemnity agreement in the first place.