affecting the credit or finance of others

[louise.l]

Presume as this is an individual arrangement it would not affect the credit or finance of any spouse or other householder over 18?

[Adam Davies]

Hi
The reality is that it may affect your partners credit,as most creditors will see husband and wives as linked financially.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[fudge34]

Hi Andy, hope you are well - just wondered whether there is any leeway on this - i.e. writing to experien etc asking for my husband to be removed from my debt. I am pursuing personal br in my name not my husbands, and I was told that because this was my debt he wouldn't be affected anyway. I am also using my maiden name for my BR as I don't use my married name well hardly ever - would that help? would hate my husband to suffer at the fate of what i had done!

[MelanieGiles]

You will have to declare your married name as well Fudge, and I am afraid that it is very likely that your husband's credit rating will be affected by your bankruptcy as you cannot disassociate from a spouse.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[fudge34]

Hi Melanine
Thanks for being honest - is there anything I can do about this? my debts happened long before I married my husband and they are all in my maiden name - he is already panicking about the BR option - would the fact that I have gone BR prevent him from making an BI offer on the house? I know I will have to declare my married name but am hoping i can BR in my maiden name as I don't want to use my married name in the proceedings as I never use it and prefer to keep my old name

[Storm]

Both names will be referenced through your CRA file. The only way you can disassociate is to demonstrate that your financial affairs are seperate. The views of the CRA's is that this can't be the case if you are married or in a relationship where you would legally be defined as a common law spouse.

In terms of credit scoring an associated credit risk will have different impacts with different lenders. You may find lenders accepting him no problem.... in credit scoring terms an associated risk normally represents a max 10% of the overall scoring.

My advise would be - make sure your husband conducts his financial affairs well during your bankruptcy use credit well, pay on time and be consious of the utilisation % / indebtness that way an association will not have much impact.

[fudge34]

Hi thanks so much for the advice -- really appreciate it - what does this mean, utilisation % / indebtness not sure what that means! he would be applying for credit on his own obviously during my BR in his name so in reality he could still, if he wanted to, obtain credit?

[Storm]

Utilisation % / Indebtness relates to two key areas:

1. If you have a limit of £1000 on a credit card if your balance outstanding is greater than say 90% (£900) and the balance isnt reducing then the lender will pick this up.

2. Credit hopping is also picked up ie balance transfers.

Ideally pay regular amounts in excess of the minimum balance.

Try not to regularly go above 90% of the credit limit.

He will be able to apply and get credit during your bankruptcy but he will find certain lenders decline the application or adjust the applicable interest rate.

[fudge34]

Hi
He has no credit apart from his student loan and about a hundred quid on a credit card he has never taken out credit and believes you should pay for what you get - you can tell the difference between us can't you! he has a loan for a motorbike but has already paid most of that back but that is about it

[Storm]

Ok - key things he needs to do to help going forward.

Make sure he is on the votors roll at your current address.

Use the credit card for a couple of things each month and pay in full at the end of the month. For example when he fills up his motor bike use the card and then simply pay - this demonstrates he is using the card responsibly.

Depending on the lender for his motorbike they will be reporting his payments.

I assume he has a current account so that could be getting reported.

Whilst he is a prudent spender of money - lenders are more scared of him than somebody who goes overdrawn every month - he is unknown !!

[fudge34]

OK good advice will tell that to him - he has a overdraft and does use that - but compared to me 'Mrs 60 grand in debt' he is positively glowing with good financial health - I don't see that he will want to take out credit - however we want him to buy the BI from me when I go BR in two weeks, we will need to take a loan, or he will so that is why I am interested in this. The equity value will be around 5 grand we think, this is without getting a proper valuation doen and going on what my IVA form said. I am discussing with him getting a loan before I go BR and then paying back the BI straight away before i get discharged as I am worried that as soon as the BR goes on my credit report he will find borrowing money tricky. We want to safeguard the house and also want to buy the BI back before I get discharged because then its another year's equity in the house - and in a year our equity (or so they say on the IVA form) has already risen nine grand.

[MelanieGiles]

I am sure that there will be plenty of lenders who will allow him to take out a loan for the beneficial interest, so try not to worry. It is only a small amount to raise, and you will have enough time to find it.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk