another debt problem

newbee007

Hi everyone,

I would like to say big thanks to everyone on this forum. You helped many people including myself, much much appreciated.

I would like to ask for advice on behalf of my friend, she is not familiar with this website.

She has been living in UK for several years and owned property in London. Now she has moved abroad with her kids and trying to get her life sorted after traumatic experience of last couple of months.

Two years ago she took 15k loan from Sainsbury's and repaid around half of it without any problems. Three months ago she took another loan under the influence of her husband. He had bad credit history (this is why they signed regime of separate property when they get married) and she took it for his business. Some time later she realized that he is serious gambler and simply lost everything - money from loan and from the house they have sold some time ago. He ran away from home and did not give any sign of life for couple of weeks. Divorce case is in progress.

My friend decided to move back to her family home abroad - she is not British. UK account is empty now as she paid whatever she could to cover October installments.

She really wants to do something with her situation. What would be the best things to start with? I asked if she reported all this as fraud at police station, she said she tried but officers refused saying that is not their case.

sourcrates

Hi,

What an awkward situation, given the circumstances, I don't blame her for wanting to get away.

Which country is she from/has she returned too ?

newbee007

she is from hungary but her husband still lives in UK.

sourcrates

Does she still intend to pay ?

She will still be liable, debts can be chased in Hungary from the U.K., but only if they have an address for her.

newbee007

yes, she wants to come back and start paying

sourcrates

newbee007 wrote: »

yes, she wants to come back and start paying

Ok so what's the problem then ?

curty510

if she wants to return to the UK and start afresh, then i advise she resolves the debt. If she is struggling to pay, contact the bank and set up an arrangement she can afford.

If the loan is solely in her name, it would be very difficult to get the ex to pay, as she would of took the loan out and gave him the money.

Hope it all works out.

DrWatson1

If she has a boat load of debt and no assets, then would bankruptcy not be the best option?

MrsTinks

Firstly it is possible but rare that a debt can be re-assigned in a divorce - really your friend needs to speak to her solicitor. If the marriage has NO assets (and I'm not sure if you are trying to imply there was a prenup? which can have limited effect anyway depending on the circumstances) and only significant debt, she would be wise to look into a bankruptcy.

How would she be planning on supporting herself when she returns to the UK? If it is through work then she may need to repay money for a while but it should be at an affordable rate.

Because of the divorce and crossing borders a couple of times complications I really would advise her to speak to a solicitor before that process progresses any further.