Left with ex wife's debt

[exonian]

Hi

I am in an IVA which is due to complete in October next year, 2015.
My IVA consists of credit card debts that I inherited from my ex wife, (I was the first named "prime" card holder on all the cards, and she had "additional" cards to the credit card accounts, which she used!, so I was left holding the baby with the debt!).
Tough and bitter pill to swallow!

The only other debt within my IVA is a "joint" loan we had, for approx £25k, a loan I took on via a very acrimonious and lengthy divorce settlement.

I took the loan on, to bring to an end, the lengthy and expensive divorce proceedings, which were impacting on my health and future life.

With my new wife's assistance and support, I have been able to maintain my IVA payments, (albeit with a payment "break" during my wife's maternity leave), and I believed that ALL debts would be cleared/wiped at the end of my IVA, however it has come to light that whilst the creditor for the £25k loan will acknowledge that I have fulfilled my commitments to the loan via my IVA, the creditor can then "chase" my ex wife for monies towards the original "joint" loan, (i.e. her share), when my IVA finishes?!.... despite me taking on the loan via the divorce settlement?!!!

If this is true I am shocked and saddened!

Don't get me wrong, my ex got away "scot free" financially, however, I do not want to open deep and sore wounds, and basically want nothing to do with my ex, EVER again!

If they do pursue her, I will have to abide by the divorce settlement, and pay her part in some way, but I thought the mandatory inclusion of this loan within my IVA would be the end of it !!!

If I do have to pay, what should I do?
I will have honoured, (with my wife's help), an IVA, and avoided bankruptcy, and do not want to enter into another IVA, or worse still bankruptcy, after coming so far..... my journey should be ended!!!
Would a DMP be a better option if I have to pay my ex's share of the loan?

The whole thought is a nightmare, and has impacted on me health wise, just as I am recovering from PTSD and depression!

Any help/guidance would be very much welcomed.

[RHB]

If you haven't got the money it doesn't matter what the divorce settlement says, you can't pay it! Courts can only divide assets, not debts. Just forget about it & carry on with your life - sounds like you have a new baby to concentrate on.

[Michael Peoples]

Your ex is liable for this debt but if you want to repay it there is nothing to stop you. I am surprised however that the joint creditor has not already chased her. If she hears nothing from them for 6 years there is a possibility the debt is statute barred and cannot be pursued.

[exonian]

[exonian]

Thanks a lot for the reply RHB

[exonian]

Thanks a lot Michael.

Based on what you say, I'm surprised they, (the creditor), haven't chased her too!

The WHOLE loan amount is shown in my IVA, and the creditor concerned voted in favour of my IVA.

Our divorce (decree absolute) took place mid 2007.

"Statute barred" is a new one on me!
Hope that's the case!!!

The divorce was the "divorce from hell", and I would not wish what happened on my worst enemy!!!

Don't want any more grief!!!!
[:(]

exonian

[Michael Peoples]

Fingers crossed they do not pursue nd you can move on with your life.

[exonian]

Thanx a lot Michael

Bless you

Exonian

[exonian]

Michael

Been looking at the statute barred debt thing, and just wanted to confirm/check something with you if that's ok?

If the joint creditors have not chased my ex wife in connection with this joint debt, for SIX/SEVEN years or more, and they WERE to pursue her after my IVA finishes in the last quarter of 2015, (when EIGHT/NINE years will have elapsed), could she fire off a statute barred debt letter to the chasing creditor?

When my ex wife and I were together, we were of course jointly paying the loan, but I took over this joint loan in 2008, via a divorce settlement and subsequent sole IVA, with my wife assisting me with my IVA payments.

My ex has not made ANY payments to the joint loan since the divorce settlement in 2008, and will not have acknowledged to any creditor that she is liable for payments to the joint loan.

If the joint creditors HAD been chasing her between 2008 and 2014, I would definitely have heard from her by now!!!!!!

As I said before, the WHOLE loan amount is shown in my sole IVA, and the associated creditor voted in favour of my IVA in 2010.

Sorry to be a pain, just trying to wrap my head around this joint debt/IVA/statute barred debt issue where I'm concerned, and the timescale criteria and implications both now, (since the divorce settlement in 2008 - i.e. SIX/SEVEN years ago), and when my IVA is finished, (and EIGHT/NINE years will have elapsed since the divorce settlement).


Regards

exonian

[Adam Davies]

Hi

With any joint debt the whole amount will be shown within the IVA, so this is not unusual.

Have you received letters/communication regarding the joint debt that have you both named on them ?

Regards

[exonian]

Hi Andy

Thanks for your post.

No, I haven't received any letters/communication regarding the joint debt that has the both of our names on, but obviously can't speak for my "ex", but I am sure she would have shouted before now if she had received any correspondence relating to this loan!!

I haven't received any correspondence at all, sole or joint, regarding this loan, and definitely not since the divorce settlement in 2008 and initiation of my IVA in 2010.

exonian



Have you received letters/communication regarding the joint debt that have you both named on them ? - See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 740#544230

[MelanieGiles]

A ruling under matrimonial proceedings, however well intentioned by both parties, does not bind in the creditor concerned - so if one of you is in the IVA, they are perfectly within their rights to pursue your ex-wife.

Statute barring does not wipe out the debt either, it just makes it impossible for the creditor to enforce it. Appreciate that this may mean one and the same in your circumstances, but I have to say I'm surprised it has taken this creditor so long to catch up with her.

[Michael Peoples]

It does seem odd that your ex has not been pursued and your point about timing is interesting. I am no lawyer so I have not got a clue whether the six year rule applies to when you took over the payments or when you defaulted. However either way she should be okay once the sixth anniversary of your IVA has passed.

There is also the possibility that the creditor has been trying to contact her and been unsuccessful if for example she has moved, so this would cause another complication.

[exonian]

Thanks for the info Melanie.

Understanding the debt remaining but not being enforceable under statute barred debt law, is curious but understandable.

I went into the IVA and included the whole amount with the best intentions.

If the loan balance remains in situ, but not enforceable, would that impact mine or my ex wife's credit record?

exonian

[exonian]

Hi Michael

Thanks for the info.

Your comment......

"However either way she should be okay once the sixth anniversary of your IVA has passed"

If the creditors have NOT pursued my ex wife, would 6 year statute barred debt rules apply from the anniversary of our divorce settlement date, i.e. 2008, rather than the sixth anniversary of my IVA being passed, i.e. 2010?

Note your comments about the creditors chasing but not being able to contact/locate her, (although a search of the electoral roll would reveal her location), but would the 6 year rule apply if they have not been able to locate her and serve her with papers etc, or would their proof of pursuance of her and the debt - albeit fruitless - be sufficient to nullify the statute barred debt law?

This is heavy stuff!!!

Still goes back to her not acknowledging the debt verbally or in writing since 2008!!!

Appreciate all your advice

exonian