Joint debts

somuchindebt

Hello. I have a question, I am pretty sure I know the answer
Some of my debts are jointly responsible with my ex husband. Really I think they should all be his because they were for the business that we were both Directors for and jointly owned the business. But I had to go to work and earn money. Because I didn't trust him in running the business I resigned as a Director so that I was not responsible for his actions. He then put the business to liquidation, bought all the assets for fraction of the price and still doing same business as sole trader. He is not paying anything towards the debts but I am through the Step Change. I rang the creditors to change my address and while on the phone I asked them if he pays anything towards the debt but they didn't want to discuss it. They just said they are getting money from Step Change Charity quoting amount I am paying.
My question is, am I just making life easy for him by paying and keeping creditors happy. At the same time is his responsibility likely to disappear if he does not make any payment for 6 years? I know I have to pay, as I don't want CCJ etc, but I am so angry and I hope you will understand that ideally I would like to avoid paying seeing that he has good site of the deal I just have to pay for it. Thank you

[Deleted User]

somuchindebt wrote: »

At the same time is his responsibility likely to disappear if he does not make any payment for 6 years?

No. The debt will remain in force unless no payment or acknowledgement is made for 6 years.

Pixie5740

Were the debts dealt with as part of the financial settlement of your divorce?

sourcrates

Hi,

You are both equally liable for joint debts, creditors can chase you both, however if just one is paying, it's not unhreard of for the creditors to accept that rather than nothing.

They may pursue your husband, they may not.

How much do you owe (jointly) and what exactly were the debts for ?

somuchindebt

zx81 - if he does not acknowledge them for 6 years, will he be clear of them, and I will then be solely responsible?
Pixie5740 we did not do settlement at divorce, I know, silly but I did divorce myself, no money for solicitors etc at the time. All was very messy, depression etc...
Sourcrates - if I stopped paying can they just chase me and not my ex husband? The joints debts are £14k with HSBC and this was for being guarantors on a ltd company loan or overdraft and £10 also for HSBC but is now with Moorcroft and this is for same thing as above, I am just not sure which was was loan which one was for overdraft.
I also have masses of debts in my name with HSBC, Barclays, Barclaycard and Lowell. These are also do to with the business but in personal name - Barclay and Barclaycard use to be in sole trader name before company was incorporated. I didn't want to use these facilities but my then husband was emotionally blackmailing me to do so. We recently sold the house and I had bigger chunk of the equity because I am with the children. My understanding was that with his money he would try and sort out his debts, be he decided not to and is paying nothing towards it. I have got money and can afford good sums towards full and final settlements but decided to wait a bit before I do this but also I don't want to spend all this money towards the debts as I have to think about future of my family.

sourcrates

Ok,

If your end goal is to get good settlements on these accounts, then there is only one way to do that, and that's to stop paying altogether.

Let the debts default, keep a close eye on all correspondence from creditors, to avoid court action if it's threatened, wait until all accounts have been sold on.

It's at this point you will be contacted by the new owners, now these companies buy debts in bulk, for pennies in the pound, so they can afford to give big discounts and still make a profit.

Usually discounts will range from 40-60% off, these offers normally come in the post pretty quickly after purchase, it's at this point you start negoatiating the best deal possible with each creditor.

That'd be my game plan.

[Deleted User]

somuchindebt wrote: »

zx81 - if he does not acknowledge them for 6 years, will he be clear of them, and I will then be solely responsible?

No - as long as the debt remains in force, he is as liable as you (notwithstanding the fact he's not paying anything).

sourcrates

With a joint debt, as Zx81 points out, the six years runs from the last point either you or the other debtor made a payment to it.

If you have split-up, your non paying partner may think a debt is statute barred but actually it isn’t because you are making payments to it.
So your husband cannot use the Limitations act to avoid paying.

somuchindebt

Thank you guys.
Sourcrates, debts have already been defaulted, most of them just under 3 years ago. So far one only has been sold onto Lowell. I am currently paying but very small amounts. Just changed my address with creditors today.
I will wait couple of months paying this amount and then will do budget review. According to my budget I will not be able to afford these payments so may follow your advise and not pay them and see if more debts get sold on. Yes, I really would like to get low settlements offer and close this chapter. I am not in a rush I suppose, so happy to wait until I am in better negotiating position. I just hope creditors won't start sniffing about the house sale and won't take me to court.

somuchindebt

Saying that actually I haven't got any of the business loans and cards on my credit file. I am not 100% if they are defaulted now....
That got me very worried as I had assumed that all my debts were defaulted and the clock had started! Can they still appear on my credit file at a later date?

sourcrates

somuchindebt wrote: »

Saying that actually I haven't got any of the business loans and cards on my credit file. I am not 100% if they are defaulted now....
That got me very worried as I had assumed that all my debts were defaulted and the clock had started! Can they still appear on my credit file at a later date?

There are 3 credit reference agencies, Experian, Noddle, and Equifax.

You need to check all three.

Are you 100% certain the debts you believe are joint debts, actually are ?