Ex partner has a pile of debts

[dizzygirl67]

Hi, my ex-partner has amassed a pile of debts, in the thousands, on credit cards.

 

It's looking like he may go bankrupt very soon and is doing nothing about it. Head/sand interface.

 

He hasn't contributed anything towards the mortgage, the bills or anything for over a year, apart from the minimum amount of child support. The problem is that the house is in both our names and I'm worried to death about what will happen if he does go bump as I have a young son to support.

 

I'm a full time student at University so I'm not sure if I can buy him out or not or what my options are under the circumstances.

 

Can I buy him out?

Can I take his name off the mortgage?

If the creditors come after him how will it affect me?

 

DizzyGirl

[National Debtline]

Hello Dizzygirl.

 

Do you know if there is equity within the property? If so then the property could become implicated in the bankruptcy. Generally speaking, the Official Reciever/Trustee will want to realise your ex's share of the equity - this will either be via its sale or by someone buying him out of his share of the equity. If the house has to be sold you may be able to delay the sale, sometimes this can be by up to a year. If there is little no no equity you may be able to keep the property. There is a useful guide which will explain these points in further detail, you can download it here:

 

http://www.bis.gov.uk/assets/insolvency/docs/publication-word/what-will-happen-to-my-home.doc

 

To answer your specific questions:

1. Theoretically you can buy him out, so long as you can demonstrate to a mortgage lender that you can afford to meet the instalment in full on your own. If you are a fulltime student you find it difficult to remortgage unless you have a high level of income coming in. You may need to seek financial advice.

2. Yes, that's possible - you'll need his agreement though.

3. You are not directly liable for any debt which is simply in his name. Whilst you have a joint mortgage you will have a 'financial connection' on your credit files. That means his poor credit can indirectly affect your credit score. More info on credit referencing here:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=05_credit_reference_agencies

 

Once you no longer have a joint financial connection you will be able to apply to disassociate financially from him.

 

I hope this posts answers your questions!

 

Best wishes,

 

David @ NDL.