Credit card maxed and cannot repay

pixie1982

Hi there. 

My partner's credit card has been maxed out to over £10k and his wobbly business is basically over with the pandemic lockdown. He can't afford to pay it back at all. He has zero income but also zero outgoings. 
House hold money isn't a problem. I handle the finances and we have enough to live on, very luckily in the current situation . Basically I pay for every thing and manage the bills. No money goes into his account or comes out. He's also on the waiting list for an autism diagnosis which I believe is definitely the case (I work in autism research) and which affects his ability to manage his finances effectively. 
We get a small payment through tax credits as a couple in a joint application each month which is all paid into my account.  
The credit card company have sent through one of these budget sheets and at the moment I've said to put zero on it because I'm not declaring my income and expenditure as it has nothing to do with them. I am prepared to write a letter confirming that he lives at home rent free and contribution free as the primary carer for our son who is disabled, and which also affects my partner's ability to work full time. 

This is not a case of someone taking the p1ss. I have paid the card off 3 times in the last 10 years and it has always been run up again. He genuinely has difficulties relating to managing his money because of being autistic. To be honest I'm pleased we've finally reached this stage because it means he won't be able to get any more credit and removes the risk of it happening again. 
So my questions are?
What will happen? We just can't pay the debt, there are no assets and no wages income. 
Can they come after our joint tax credits payment even though it is paid solely to me? It is also essential to our household finances. 
Anything else that you might know as relevant to this situation. 

Thanking in advance. 

SaverRate

Shouldn't have had credit cards in the first place if he cannot manage his money regardless of if he has Autism or not. If they are business credit cards and his business isnt Ltd then they will come for your household money. If they are not business credit cards but personal and you are married then again they can come for your household money

ElizabethRose

You admit to a joint tax credit claim so he does have an income but it is paid into your account. Also if you mention he is a carer they will question if he receives carers allowance. You're probably best going on the debt free wannabe board and contacting someone like step change. I'm sorry to say you can't put zero income when he has benefits being paid into your account. You will need to tackle this as a household. 

The_Fat_Controller

1. Take the card away from him and cut it up.
2. Contact the company and agree a repayment plan.
3. If this has happened 3 time in 10 years, that should have led to option (1) sooner.

whitesmith

Regarding the credit card debt - it depends whose name is on the credit agreement

if both of your names are on the credit agreement then you will be both be jointly and severally liable

 if you are not on the agreement then his debts cannot be enforced upon you as you are two separate people

I do not know the answer to the joint tax credits situation. If I were forced to guess I would say that the income should in the absence of any other agreement be divided 50/50 between you and him

MEM62

HarryDavies01 said:

Shouldn't have had credit cards in the first place if he cannot manage his money regardless of if he has Autism or not. If they are business credit cards and his business isnt Ltd then they will come for your household money. If they are not business credit cards but personal and you are married then again they can come for your household money

OP You can ignore this advice.  Although many couples might deal with this as a joint issue, the debts are his, not the households and you are not responsible for repaying them.   

whitesmith said:

Regarding the credit card debt - it depends whose name is on the credit agreement
if both of your names are on the credit agreement then you will be both be jointly and severally liable

@whitesmith Credit cards are not issued in join@whitesmith

OP, I understand the approach you are taking with this.  With your help he will just have to outline his situation to the lender and see what their response is.  A call to National Debtline in the meantime would also help you to know where you stand.   

MEM62

Should read "not issued in joint names"

whitesmith

Yes you are right of course - credit cards are not even issued in joint names as you say

pixie1982

Thanks. We're not trying to be dishonest about this, rather ensuring that his debt is repaid by understanding what is classed as his income, what can be off set against this and what impact this might have on our household finances. 
I have the say that I am really surprised by some of the judgemental replies we have received. I was told this was a good site to come for advice. Given so many people are going to be in a similar situation in the pandemic, I can hardly say that the usually rules are apply on the current climate. Thanks @MEM62 for your clarification. 

MEM62

pixie1982 said:

I was told this was a good site to come for advice. 

It is and you are welcome.  Hope you manage to find a solution.  

eskbanker

pixie1982 said:

We're not trying to be dishonest about this, rather ensuring that his debt is repaid by understanding what is classed as his income, what can be off set against this and what impact this might have on our household finances.

If tax credits are joint then it would be dishonest to claim that he has no income, so he should declare his portion of these.  However, if that is all effectively spent on his basic living costs then that should also be declared, so there's no need to pretend that he has no income and no expenditure.