Will Ex Wifes Debts be included in my Bankruptcy?

Cobalt77

billyjenningsboots wrote: »

Thanks for the responses ... if these secured/joint loans are all passed to my ex then there may be a significant drop in the debt purely assigned to me.

Would this be the same in say an IVA?

Some additional questions first. As you are talking about secured loans, there must be some form of security (presumably a house?)

Q1. Are you absolutely certain this property is in negative equity? Have you had any recent valuations carried out?
Q2. Is this property fully jointly owned? (i.e. are you both on the mortgage and also both still registered as owners at the Land Registry?
Q3. How was this property treated in your divorce settlement? (e.g. have you moved out, but your "ex" has kept the house?)

With regard to your IVA question:

Secured loans are debts which are secured against your home. This means if you can’t pay the debt, they can take your home from you. You can include secured loans, mortgage or rent arrears in an IVA. However, your creditor will have to give their permission for it to be included and they are unlikely to do this.

Source: https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/individual-voluntary-arrangements/individual-voluntary-arrangements-explained/debts-an-individual-voluntary-arrangement-covers/

HTH

billyjenningsboots

Hi unfortunately the house was repossesed... when I left (not my choice) the house remained with my wife, but I was unaware that she wasn't paying the mortgage despite me still paying half..

The property was repossessed and had some negative equity but we also had a secured loan in my name... I have tried to find the original documentation but a lot of the docs were lost when she emptied the house, so i am not sure if the secured loan is in both names or just mine either way it was secured against the property...

Cobalt77

billyjenningsboots,

If you had secured loans on a property which is in negative equity and that property has now been repossessed by the mortgage lender (i.e. neither you nor your "ex" are still in it, and the mortgage lender has taken back the keys) then any other secured loans will ultimately end up as unsecured loans in your BR anyway (because once your repossessed property has been sold, there will not be any spare equity to repay these secured loans)

So (if I remember correctly) if your repossessed property has not been resold by the time you go BR, you'll include your property as an asset on the BR form (even though it is in negative equity). You'll also include your mortgage and any secured loans in the "secured loans" section.

When you have your initial interview with the OR, explain the situation to them. As soon as the mortgage lender advises the OR your repossessed property has been sold at a loss, the OR will include any mortgage shortfall plus any (previously) secured loans in your BR as unsecured loans (which they now will be).

So, any liability you had with respect to them will be included in your BR and you will no longer be liable. However, as fermi et al have previously said, if any of these debts were in joint names with your "ex" then she will be liable for the full amount and may be chased by the lenders for repayment at some point.

HTH

billyjenningsboots

Thanks cobalt that makes it clearer....

billyjenningsboots

Just looking at the Statement of Affairs and I am wondering what constitutes a contribution to paying for the Household expenses from my new Partner.

I live in her house and I pay for the majority of the expenses I would say... Are there any rules to this?