No Way Out

[trog]

I have gotten back with my partner, maybe a bad idea, but we have 3 children

Situation is he temporarly moved into his sisters. Got finance which i have just recently found out about,

He has unsecured debts of approxiamatley £45k[:(] He has sinced moved back with me am trying to help him sort payments out.

Buts its a mess, robbing peter to pay paul, he has over 8 credit cards.

There is no way we can pay these debts.

As offering to take him back, our house is in both names, but he recentlty took his name off title deeds, as i was stick of him having a hold on property. As thought to myself in past i am paying mortagage and endowment and bet he has hold on these still.

I then found out about all the debt he owes, i worried that they might of think hes had house title taken away from him as convience. I cant believe he got so much debt.

My worry now is could the debtors could back to where he lives now and try to reclaim house, as there is equity in.

He is burying his head in sand, realsie its been difficult for him with death in family and other problems, but i constantly worry.

He is still paying bills but with 2 loans for £15k each and credit crads maybe £15k or maybe more i cant take it any more

Heard mixed bags about IVA, the debt he borrowed has spiralled out of control and yet he still gets offers for more debt, way above his earnings.

What makes it worse is he is nol longer employed but self employed which is even more a struggle.

People say dont worry its not in your name, but i feel he not realising true depth of debth, even i dont know how much it is,

Any advice welcome, ps dont think i can get him to speak to a counsellor

[MelanieGiles]

Hi trog and welcome to the forum

In order to address his debts, your husband will need to pluck up the courage to take professional advice - this cannot be done for him!

If he is unable to pay his creditors on time, then he basically has three options:-

1 Declare himself bankrupt - in which case it is almost certain that the Trustee will seek to claim a half share interest over your property. If there is equity in the property, you will need to be prepared to buy him out or see the house sold.

2 Enter into an IVA - this can only be done if your husband faces up to his situation and wishes to arrange an ongoing repayment programme with his creditors. He will need to afford to pay at least £330 per month for an IVA to be acceptable to an IP and to creditors - and he must be prepared to stick to a repayment programme. Equity will also need to be addressed during the final year, of which an IVA is usually structured to run over 5 years.

3 Offer a Debt Management Programme to creditors - based upon regular monthly payments until the debts have been paid off in full. This may take your husband a lot longer to repay than an IVA, as interest may continue to be charged by the creditors.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[trog]

hi melanie

the problem is he cant talk about it.

With him transfering his name of the deeds over 4 months ago , will they still have say so in my house.

We are not married so are they entitled to come to me for his debt.

I only found out about his debt 4 weeks ago, what a mess.

We could not afford the £330 payment as with him coming back to me, the expenses we have we just manage, mortgage etc.

At times i wonder why i took him back, trying to tell him cant rob peter to pay paul any more.

[chris.g]

Hiya, they will still have a claim on his share of the equity in the house. They can, I think, go back 5 years before bankruptcy and still have a claim on houses. You can, of course, buy out his share. Not ideal but at least you won't have to sell if you r in a postition to do so.

Learning as I go along!!!

[trog]

Thanks Chris

when i bought him out, there was no exchange of money a it was and still is the family home,

Its such a mess, cant believe its gotten to this

[chris.g]

I'm sorry but I'm almost certain they will still want his share of the equity from the house, unless it's in negative equity. You and your husband really need to get professional advice.

Learning as I go along!!!

[trog]

will have to seek advice myself.

were not married, will maybe try detline

[chris.g]

Hiya, I tried them and found it hard as it's all done over the phone. I found CAB great and definately non-judgemental and very helpful. Good Luck who ever you decide to ask

Learning as I go along!!!

[MelanieGiles]

Hi trog

Why do you say that your partner cannot talk to someone about his difficulties?

And could you post the value of your house, together with the amount you still owe to the mortgage company any any secured loans you may have. Is your mortgage on a repayment or interest only basis>

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[trog]

As he is still in denial, theres probably £90k equity, but mainly over the mortgage years it was me who has solely contibuted,He has only contibuted to about a 3rd of the mortgage term.

The property is now soley in my name, as i bought him out, as he owed me monety from when we split earlier.

For me i dont want the hassle of baliffs CCJs,but people say dont worry its not in your name its not secured etc etc, but cant sleep.

maybe a trip to CAB is needed

[MelanieGiles]

Hi trog

With that level of equity, you really need to take some professional advice soon, as if your partner does not start addressing his debts your home is at risk. You cannot argue that your partner gave you his interest in the property in lieu of monies he owed you. That would be deemed to be a preference which could be overturned under bankruptcy legislation.

To protect your home for you and the children, urge him to get his head out of the sand and find some way of paying the debts.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[trog]

forgot to say its a repayment about £54k still owing, i suppose i can do nothing till he admits to it.

[chris.g]

Hiya, the trouble is the longer it is left the worse the situation will get. Unfortunately, whether he is living with you or not, your house is still at risk. If I were you, I would seek advice on how you can protect yourself and your children in this situation. You may not be able to sort out his debt but at least you will know what to expect if worst comes to worst. Good luck

Learning as I go along!!!

[trog]

Will seek advice, for my own sanity, to think my home could be at risk when i had nothing to do with the loans is frightening.

trip to the CAB