partner has run up a large debt without me knowing

[scooby3]

My partner has run up a large debt without me knowing and requires help to pay it back.
can she voluntary freeze her credit or blacklist herself to stop her gaining credit without going bankrupt or IVA?

[Oliver]

I have never heard of a way to blacklist yourself from being able to take further credit, although I am happy to be corrected by any of the other experts.

If your Partner is Insolvent, i.e. she can not pay her debts back then she has three options, an Informal repayment plan with her creditors, an IVA or Bankruptcy.

Please post some more information on your circumstances and I can explain the options in more detail if needs be!



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

No - this is not possible. You will have to take the cards off her and make sure she does not obtain any more.

If she is unable to pay her debts, and does not want to consider an IVA or bankruptcy, then a DMP might be a sensible option. Depending upon how many individual creditors she has, it may make more sense to approach the creditors directly rather than pay a debt management firm to do this for her, that way her whole contribution will be used to reduce the balances owing.



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

[scooby3]

Thanks for the advice, my partner has given me her cards and currently wants to surrender her bank account so I can manage her money through mine.

She has managed to transfer her new debt to her bank only but i believe they have misadvised her by letting her build up £2000 overdrafts and then offer her loans to repay this easier. This spiral then repeats itself over and over.

The best was this week when they gave her a new card and transfered £8000 onto it and then told her she had exceeded her £4500 limit!!! you guessed it, the letter requesting payment or charges followed the next day.

Overall she owes £22000 to the bank and parents and could pay this back with managable payments on a long term loan but always wants the quick fix, hence why the blacklist question to stop further borrowing if this is what we decide to do.

We are due to marry soon and my home equity could be borrowed against to settle this but my trust is dented and she cannot see what she has done wrong over the last 2 years to get into this situation.
I could not afford this to hapen again without my home being at risk!!

Thanks Colin

[MelanieGiles]

Colin

She is a lucky girl to have such a supportive partner - but I am sure she knows that already!

I think the joint bank account is a good idea so that you can keep your eye on the joint household spending. I personally would not use my equity to fund someone else's debts if they could afford to repay over a realistic period, but do be aware that she is probably paying high interest rates.

Why not compromise and tell her that you will consider paying off the remainder of her debts when she reduces them by £10,000. Incentive for her to work hard at a reduction programme, and leaves you less exposed to eventual borrowing. Just a thought!

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