Wifes debt ,worried sick

Carl100 · 16 November 2019 at 10:20AM

Hi,thougt life was great till friends asked if my wife had money worries as she had lent £10000 from them,i paid them back but have emptied my bank balance doing it ,i confronted wife who has told me she had closed her buisiness,and has bank loans of £23000.i am worried sick and am i liable as our mortgage is in joint names, i cant sleep with worry

WhenIam64 · 16 November 2019 at 11:32AM

The first thing you need to do is to sit down and make a plan. The plan should be how many payments over how long (cash flow). You then work out if the loan payments can be made or will she need to default on any (or all) of them.

Joint names on a mortgage suggests joint ownership of the home so some debt solutions would not be available to her so an IVA or a DMP is the more likely way forward.

A debt charity would be able to advise and if you wife can find new employment then you may be able to meet the schedule in an IVA/DMP from those.

am i liable as our mortgage is in joint names

There will be a solution that does not risk the home but it will depend on the numbers.

Carl100 · 16 November 2019 at 11:42AM

Thanks for reply ,she has talked about iva ,buy my head is spinning and dont know anything about it ,also she is happy to take her name of mortgage for mine and kids benefit so house is safe ,can this be done ,has anyone experienced this ,im in turmoil,never felt so low in my life,thanks in advance

WhenIam64 · 16 November 2019 at 11:54AM

The solution you are looking for is a logical one based on the numbers you can put together. The last thing you want to do is to make decisions on the fly. No-one really wants to take your home from you as it is easier/simple/more profitable to get you to pay to the terms. Which is why you need to sit down with a plan.

The other issue is the effect on you and the family. You are more likely to be successful in sorting this as a team rather than pulling in different directions. If your wife has been in business perhaps she can do the financial plan and see what is affordable. Have chat with someone from Stepchange or Payplan who both have comprehensive guides to the options.

Are the loans personal or secured? Are any of the loans in the name of a limited company or are they all personal?

Grumpelstiltskin · 16 November 2019 at 12:02PM

Carl first of all don't panic, if you do you are liable to make the wrong decisions.

Calm down and as suggested get all the information together and sit down and get everything down on paper.

Nothing is going to happen this weekend and if you know by Monday
what exactly what the situation is then you will be in a good position to contact a debt charity.

Edit Get your wife to look at this website for help with business debts.

https://www.businessdebtline.org/

Carl100 · 16 November 2019 at 2:56PM

Thankyou again ,its unsecured bank loans,we have contacted bank and started procedures to take her name of mortgage ,we have contacted iva agencies to speak to,so when she starts a job we can pay an agreed amount back,i just hope this is the right way,if there is a right way,thanks

elsien · 16 November 2019 at 3:00PM

What is the reason that she has run up the debts?
She needs to address that first, otherwise the pattern may continue. For example if she was running a business, are there any tax bills in the horizon?
Do you have any joint bank accounts, or are your finances completely separate?

sourcrates · 16 November 2019 at 3:02PM

Carl100 wrote: »

Thanks for reply ,she has talked about iva ,buy my head is spinning and dont know anything about it ,also she is happy to take her name of mortgage for mine and kids benefit so house is safe ,can this be done ,has anyone experienced this ,im in turmoil,never felt so low in my life,thanks in advance

Hi Carl,

It can be daunting when first confronted by a large amount of debt, but the solutions are pretty much straightforward affairs, there are tried and tested ways of dealing with it, using solutions provided for you by Government.

However, most debt solutions require an income of some kind.

Your circumstances, and your income and expenditure dictate which debt solution may be right for your particular situation, as you are both homeowners, you have that asset to protect, so an IVA (Individual voluntary arrangement) or a DMP (Debt mangement plan) are the two options most likley to be suitable for her.

I suggest you Google both options, then this weekend, get as much information as possible on them, than have her contact buisness debtline, linked to above, to discuss this in more detail, but with no current income, there is nothing much anyone can do, i would suggest informing her creditors she has no income to avoid any further action being taken.

Carl100 · 16 November 2019 at 3:15PM

We want to go the iva route,but we feel the need to get her name of the mortgage asap,to safeguard the house,and stop the creditors makeing us remorgage

Grumpelstiltskin · 16 November 2019 at 4:02PM

Carl Don't commit to an IVA until you have discussed all options with a free Debt Charity.

Like I said don't rush into something in a panic.

sourcrates · 16 November 2019 at 6:11PM

Carl100 wrote: »

We want to go the iva route,but we feel the need to get her name of the mortgage asap,to safeguard the house,and stop the creditors makeing us remorgage

No, I would not recommend you do this, it’s called “disposal of an asset” and can be reversed if she enters insolvency within 5 years, the IVA can also be refused by her creditors if it’s found out assets have been disposed of.

Wifes debt ,worried sick

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