Husband's Debt

nomoredebt

Hi, My husband has accumulated some debt on credit cards
/paypal credit.

What I would like to know is if he lost his job or wasn't able to work for any reason what happens about the money he owes.  I take it they will still want their money.

He won't tell me or show me how much he owes (he has told me a rough figure but he won't show me proof). I have no idea what he has spent the money on as he has nothing to show (which is worrying) He says he isn't using them but I don't believe him.

We jointly own a house which thankfully is paid off.

Would I be expected to pay his debt off as we are married?

If anything did happen to him I wouldn't even know who to contact to let them know as I think all his accounts are online.  Would the first I would know is when a debt collector is at the door?

I have tried to get him to talk about it but he just tells me he is dealing with it.  It's like trying to talk to a brick wall.  He suffers with his mental health and likes to remind me about it when we have this discussion comes up which just shuts it down.

 If you have got this far, thanks for reading and any advice is welcome 

elsien

Any debts that are in his sole name are his responsibility. 

If the money he owes is unsecured, there are debt management options he can look into.

If he has taken out anything secured on the house, which could only happen if your signature was on the paperwork, that is a slightly different scenario. However, if he did pass away owing money then what his estate would be liable for would depend on how your property is owned between you.

If it is as joint tenants then ownership of the property reverts fully to you on his death, then the house is safe. 

Debt collectors have no power, although they like to pretend they are baillifs and will threaten all sorts of things that are not entirely accurate. If someone takes him to court and gets a CCJ he would need to sort out a payment plan to avoid bailiffs becoming involved.

He refusing to share the information with you. It’s a bit of a red flag because it could mean that he’s still hiding things.
Do you think it’s possible he has an addiction for example gambling?

fatbelly

If he's not going to tell you then you are going to have to leave it till he's ready.

Credit card debt is always one person only so it will never be your debt. If somthing happened to him then you would be in position to open the letters.

Credit card debt is non-priority so if that is all he has then that is not too bad. If he can't pay then 9/10 it just gets sold on to a different company

It might be helpful if he could explain what he means when he says he's dealing with it

Brie

The problem debts are those with both names on them.  Mortgage - which you say you don't have.  Utilities, phone, broadband, water, council tax.  Even if you're name is only on those your husband (or vice versa) may be considered as responsible as you are both using those services.  

It's the not discussing it that's the biggest issue.  You don't know what else he might be hiding.  

DullGreyGuy

As others have said, credit card debts are personal so they are only going to be pursuing him. Debts dont get written off just because someone loses their job else anyone with spiralling debt would be tempted to get sacked and have it written off. 

Were you to divorce then in principle the debt would be considered a marital matter to be considered when splitting up the assets but some accept and others successfully argue that certain assets/liabilities are solely one parties. Were they to die then the estate would need to pay off the debts before inheritance is considered so that would depend what assets there are, as others have said a joint tenant house doesn't form part of the estate but a tenants in common one would. 


Its surprisingly easy to run up very material debts with nothing significant to show for it, just start taking a taxi rather than walking/busing, go out to lunch, have a couple of beers after work and it can rapidly stack up. Its not necessarily all being spent on him either... my father racked up a load of debts in the last years of his life when he was often ill so his business suffered but rather than reduce our lifestyle he started putting holidays and meals out on credit cards which my mother claimed not to know about as he'd told her his partners were taking up the slack so the business was still growing. 

Its worth checking your own credit record too, once he'd maxed out the cards/loans in his own name he started taking out some more credit in my mothers name (or joint) without her consent. 

fatbelly

Also keep an eye on the insolvency register.

https://www.insolvencydirect.bis.gov.uk/eiir/

Sounds like he would be prime prey for the IVA vultures

Exodi

nomoredebt said:

Hi, My husband has accumulated some debt on credit cards
/paypal credit.

What I would like to know is if he lost his job or wasn't able to work for any reason what happens about the money he owes.  I take it they will still want their money.

He won't tell me or show me how much he owes (he has told me a rough figure but he won't show me proof). I have no idea what he has spent the money on as he has nothing to show (which is worrying) He says he isn't using them but I don't believe him.

We jointly own a house which thankfully is paid off.

Would I be expected to pay his debt off as we are married?

If anything did happen to him I wouldn't even know who to contact to let them know as I think all his accounts are online.  Would the first I would know is when a debt collector is at the door?

I have tried to get him to talk about it but he just tells me he is dealing with it.  It's like trying to talk to a brick wall.  He suffers with his mental health and likes to remind me about it when we have this discussion comes up which just shuts it down.

 If you have got this far, thanks for reading and any advice is welcome 

I think his reaction may be due to how it is being approached. There is obviously a big difference between "you better tell me what you owe and how you're going to clear it, there's not a chance I'm getting lumbered with it" and "I'd like to help you and work our way through the debt it as a team, even if that means contributing towards it. I don't like to see you worry".

If it's the former, then of course he may feel there's little point in providing you the stick to beat him with.

Credit card debt is technically personal, but I'd imagine debt like this would usually be offset against the matrimonial pot in a divorce, just as someone with a few grand in savings pre-marriage will usually concede it. I know it can be negotiated though.

Having 'nothing to show for it' I don't think is worrying, could be a million different reasons for it. It could be that it financed any of his possessions (or potentially gifts for you) without you being aware.

Edi81

I’d be setting up an alert on land registry in case he tries to mortgage the house without you knowing. 

Exodi

Edi81 said:

I’d be setting up an alert on land registry in case he tries to mortgage the house without you knowing. 

Erm, as in committing literal fraud (as he'd need to state her consent on the application as the mortgage would be in both their names)?

I think if a relationship has got to the point where you're having to set up property alerts because you don't trust that your spouse won't fraudulently mortgage a joint asset without your knowledge, then you're probably better served just divorcing at that point.

fatbelly

I understand the advice. Until he explains what 'dealing with it' means, all options are on the table.

born_again

Exodi said:

Edi81 said:

I’d be setting up an alert on land registry in case he tries to mortgage the house without you knowing. 

Erm, as in committing literal fraud (as he'd need to state her consent on the application as the mortgage would be in both their names)?

I think if a relationship has got to the point where you're having to set up property alerts because you don't trust that your spouse won't fraudulently mortgage a joint asset without your knowledge, then you're probably better served just divorcing at that point.

Problem is the situation the OP is in, can & does lead to divorce anyway. So taking out some protection to ensure that they would not face a situation where they find a unsecured debt, becomes a secured one.
Is a very prudent route to take.

As many will not realise just what they are being asked to sign.