Loans and liability? Help!

spring_cleaning

My husband has applied for a secured loan, behind my back, saying we have split up (I have found the paperwork) he has also lied about the amount he earns. I am not impressed!! What will happen if we divorce or he dies? Will I be liable?

Debt_Free_Chick

No - you are not liable for your husband's debt.

The security of the loan is also only against HIS share of your home. So if you own it jointly, it's only his part that could be used to repay the loan.

There's some useful information about what happens to debt, when someone dies here - it doesn't address your specific situation, but the general information should be useful to you

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_21.php3

On divorce, you would both have solicitors and it should be clear that the debt is not yours and therefore comes out of your husband's share of the matrimonial assets.

More worrying though .... why has he done this. Does he have other problems he's trying to hide e.g. other debts he's tried to consolidate? Gambling?

Try not to be angry - though you have every right to be - but try to find out why he borrowed the money. Why was it secured (e.g. he couldn't get a personal loan?) and why he didn't involve you in such a major decision, that could affect you both.

Post back here if you need any input or, when you have more information, call the National Debtline for practical help & advice.

Good luck