Husband has run up massive debts

Get expert opinion. This is the place for new questions to be posted.
18 posts Page 1 of 2
 
 

Boristhebrave

User avatar
Posts: 5
Joined: Sat Sep 25, 2010 4:38 pm
Location:

Post by Boristhebrave » Sat Sep 25, 2010 6:24 pm
My daughter aged 35 has been married two years. Prior to her marriage she bought a house with her father. When she bought her current house the equity ( and hence her fathers interest in the house) moved with her. His interest amounts to 40k which he has said he doesnt really want back. He is 63 years old, and financally secure. When she married her father signed as guarentor for the mortgage and her new husband took over half the mortgage payments. He put no cash into the deal.

Just over a week ago she found out that her husband had, unbeknown to her, run up massive debts on loans and God knows what else. As they has seperate accounts she knew nothing about it. He is going to have to go for an IVA. The problem is the mortgage.

She is in a good professional job and earns 30K. The house is worth about 220k and there is 120K left on the mortgage. She wants to remove her husband from the mortgage She will then take over the finances! Her husband has agreed to this.

The problem is her father. He is not in good health and so far we havent told him about this.
She is seeing the bank on Monday. On her own she is unable to take on the mortgage, perhaps she could extend the loan for now? The bank also want her husband removed from the mortgage.

What is the situation as far as her father is concerned? Is there anyway round telling him of this,it will really really worry him?
She has so far been proactive with the bank, and is taking a responsible approach but to worry her father and make him ill. Can she make an agreement with the mortgage company to remove her husbands name without her father knowing? No one else in the family is in the position to take the mortgage over. The mortgage is not in arrears although she has discovered one CCJ with a charge on the house, around 5k in total
 
 

Shining

User avatar
Posts: 27019
Joined: Thu Sep 20, 2007 8:57 am
Location:

Post by Shining » Sat Sep 25, 2010 6:28 pm
Hi there and welcome to the forum. I'm sorry to read of your daughter's situation. I would advise her to take some professional advice in the first instance and talk with an Insolvency Practitioner, why not ask her to take a look at www.iva.com for a list of companies and some reviews of these. Take the advice of 2 or 3 to get that all important impartial advice.

I think with everything you post a professional will need to take a look at all the options available to your daughter. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Boristhebrave

User avatar
Posts: 5
Joined: Sat Sep 25, 2010 4:38 pm
Location:

Post by Boristhebrave » Sat Sep 25, 2010 6:49 pm
Thank you
 
 

RHB

User avatar
Posts: 353
Joined: Fri Jan 02, 2009 4:27 pm
Location:

Post by RHB » Sun Sep 26, 2010 8:18 am
When I divorced & took over my mortgage, my Grandma was guarantor & had to be informed they were no longer guarantor. I can't see a way round it to be honest. I can't see how husband can be removed from the mortgage if his salary is needed for it though? Unless you lend her some money so that she can afford the mortgage on her own?
 
 

plasticdaft

User avatar
Forum Expert
Posts: 9562
Joined: Wed May 21, 2008 12:45 pm
Location: United Kingdom

Post by plasticdaft » Sun Sep 26, 2010 11:46 am
I would have though her father would have to be informed of any changes to the mortgage unfortunately.


Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Boristhebrave

User avatar
Posts: 5
Joined: Sat Sep 25, 2010 4:38 pm
Location:

Post by Boristhebrave » Sun Sep 26, 2010 11:56 am
We are going to the bank on Monday, what about if they extend the mortgage?
 
 

plasticdaft

User avatar
Forum Expert
Posts: 9562
Joined: Wed May 21, 2008 12:45 pm
Location: United Kingdom

Post by plasticdaft » Sun Sep 26, 2010 12:12 pm
Best to just wait and see what bank say about it all.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

kallis3

User avatar
Forum Expert
Posts: 76945
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Sun Sep 26, 2010 12:27 pm
I agree, I think you will have to be guided by what the bank say.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

RHB

User avatar
Posts: 353
Joined: Fri Jan 02, 2009 4:27 pm
Location:

Post by RHB » Sun Sep 26, 2010 1:55 pm
I think the main problem will be that with a change in mortgage, even if they will extend it, the guarantor will need to know because it affects them. Maybe her dad won't be as bad as you fear if told the truth?
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Sun Sep 26, 2010 3:42 pm
Her Dad will need to be informed of any change with regard to the mortgage.

His interest in the property also needs to be recognised in the IVA - given that her husband may well have developed a beneficial interest in the property if he has lived there for a while and contributed to the upkeep of the property.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Boristhebrave

User avatar
Posts: 5
Joined: Sat Sep 25, 2010 4:38 pm
Location:

Post by Boristhebrave » Sun Sep 26, 2010 6:29 pm
Er, you dont know how he will be. He goes into a terrible anxiety state over money, and thats normally!
We are very grateful for everyones help, it is most comforting
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Mon Sep 27, 2010 10:04 am
Rather than having your husband's name removed from the property could you not have the property exculded from the IVA? If there is £100k equity and your father owns £40k then I assume you have the same amount of interest. Your husband may have acquired an interest in the remainder but the charge on the property effectively removes that.

If you can provide enough proof to his IP creditors may agree to exclude the property but would probably look for a sixth year's contribution in lieu of any equitable interest but this may be worth paying. Your husband could look at bankruptcy and yourself and your father could take legal advice beforehand to protect your positions.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

RHB

User avatar
Posts: 353
Joined: Fri Jan 02, 2009 4:27 pm
Location:

Post by RHB » Mon Sep 27, 2010 2:00 pm
The same problem of not having her father involved will still crop up in bankruptcy. I am a bit confused though as to whether his equity has been gifted to your daughter or he wants to retain it?
 
 

Boristhebrave

User avatar
Posts: 5
Joined: Sat Sep 25, 2010 4:38 pm
Location:

Post by Boristhebrave » Mon Sep 27, 2010 6:15 pm
She is seeing her solicitor tomorrow to try to find out
The meeting with the bak went quite well today, she is able to take over the mportgage but needs to look into the legal side. It appears her father was not a guarentor ( despite what he told us) so we think there is some sort of private legal arrangement.
Pam
 
 

Broke of London

User avatar
Posts: 7761
Joined: Sun Sep 05, 2010 6:04 pm
Location: United Kingdom

Post by Broke of London » Mon Sep 27, 2010 6:43 pm
RHB: In this case I think we should assume her father is retaining his share of equity to protect it from the creditors.

Boris: I'm so pleased the bank meeting went well. THat's one bridge crossed. Fingers crossed for the meeting with the solicitor to go as smoothly. I'm rooting for you x
18 posts Page 1 of 2
Return to “Ask IVA Forum and Industry experts”