We live in Scotland and my partner has a ±£10,000 debt unsecured to a supermarket loan house it is on a fixed term she having paid off 5 years of a 7 year loan with no defaults. This debt was not taken out in the time we have lived together.
I have agreed that payments for my fiancé''s personal loan could be made from my bank account and that she would repay me. She can no longer work due to a non employment related neck injury and I can no longer keep on funding this as she can no longer repay the small amount per month (less than half of the payment) she used to give me.
We do live together and have done since August last year. This debt was left over as joint debt which she had to shoulder when her previous partner ran out on her and we suspect has now himself gone bankrupt. His whereabouts are unknown.I am writing to my bank to stop the direct debit.
I have a good job and a mortgage at this stage God willing I am not in any way at risk of job loss.
My question is I have been told under Scots law as we are living together and are planning to marry next year this debt is now my debt and I will be responsible for it!
What will happen if she goes bankrupt (she has nothing to her name (having been thrown out on the streets by her ex when she refused to take out any more loans for him) bar a bed her clothes a few ornaments and a non working computer?
I have paid all her other debts left by this man (about £8,000) and the creditors say that because I did this I have accept responsibility for all of her debts and that I must make payment for this one or take a loan in my name for this. Is this so?
Will my credit record be blackened if she goes bankrupt as an IVA is out of the question as she is not on benefits as we will not lie about her circumstances.
I just need some help about my position as piggie in the middle here please??
I don't understand why the creditors have said that your partner's debts are now your responsibility, I did not know there was a Scottish law about this. Please wait for an IP to advise you on that.
Your partner couldn't really propose a trust deed if she is not working and I presume she only has this one debt, but she could declare herself bankrupt/sequestrian and this should not affect you at all.
Your partner needs to speak to an insolvency practitioner to go over all of her options.
