Advice please

STW1966

Hi,

My partner will not discuss his debt problem with me and keeps telling me that he is 'dealing with it'. However, I have seen a letter from HRMC stating that a court date in July has been arranged for him to be declared bankrupt owing £27k. I don't know what the implications are and how it will affect me and my family (we have 2 teenager children at secondary school). We have a mortgage in joint names but have around £160k equity and have a joint bank account plus his business account. I am not sure what will happen if he is declared bankrupt. Will the accounts be frozen? Will we need to sell the house? will it affect my credit rating?

He will not admit to having a problem and will not talk to me about it, so wondered if anyone could tell what happens next.

Thanks

middleclassbutpoor

Is he a sole trader or is his company a ltd co? I guess that may have some bearing. Is the HMRC the only debtor?

STW1966

He is self employed and at the moment it is his only debt. However I believe he is upto his limit on his credit card but again he'll not discuss this. If I'm right it maybe 10k.

TheGardener

You need to get professional advice quickly. Stepchange, National Debtline or CAB if they have a local debt specialist. Business debtline of its business debts.
Yes - your partner going BR will affect you if you have joint finances.
The more equity there is - the more likely the OR will push for a sale.
Any joint bank accounts are highly likely to be frozen
If you have joint accounts then yes, it will affect your credit rating.
I know its hard but he needs to start talking to you if you are to manage this situation - is there anyone he will talk to?

Read the sticky posts at the top of this board to get a feel for how the process works - and crucially, how to manage the situation.

National_Debtline

Hi STW1966


If your husband is a sole trader it means he has personal liability for all his debts. If he is the director of a limited company the business is usually liable for the business debts, although there may be some cases where he could still be held personally liable. Was the letter from HMRC addressed to him personally?


Unfortunately there could be serious implications if your husband is made bankrupt, including a strong risk the house will be sold.


As TheGardener says it's essential you or your husband seeks advice urgently. I would recommend contacting Business Debtline as this sounds like a self employed issue. You can call them on 0800 197 6026 or visit www.businessdebtline.org to webchat.


Best wishes


Susie
@natdebtline

TheGardener

If your partner will not work with you - then you have to take some action yourself for your own/kids benefit. One thing you could do for yourself - open a new bank account in your sole name and arrange for all your income if you work and/or any benefits you receive in your name to be paid into the new account asap. Do this quickly so you are not short of cash when your partners/joint accounts are frozen.
If there are any other joint accounts - close them where possible.
Are there any other joint debts?
With so much equity it might be possible to find an alternative to it being sold - in fact there is every possibility he could avoid the BR altogether if he gets advice quickly!!!

In the worst case of it being sold - you would be entitled to 50% of the equity.

The mental health implications of debt are real and common - your partner may need help to deal with the stress if he won't talk to anyone?