Bankruptcy

[rachela500]

I am just wondering if anyone knows how bankruptcy affects a married couple? If one person goes bankrupt, does the spouse automatically become bankrupt? If not, what happens to the spouses credit cards, bank accounts etc? Do both have to apply separately if both sets of debts are to be taken into account?

[DMA]

A mate of mine's wife was gonna declare her self bankrupt but then they found that the creditors cud take the debt from HIS equity in the flat he owned before they got married. not sure if the flat & mortgage was put in joint names after the marriage.

[themas]

Bankruptcy is individual. So if your husband goes bankrupt it only affects his debts if they are in his sole name. If the debts are in joint names with you, then the bankruptcy deals with his liability but the creditors can still pursue you for the whole of the debt. If you both have debts (in each of your sole names, or joint ones) you both have to go bankrupt for them all to be dealt with.

If you have assets such as a house the situation can become complex and it could be taken and sold even if it is in the name of the spouse not going in bankrupt. You need more advice about this.

Go to www.insolvency.gov.uk & download their booklets etc. Go to www.debtquestions.co.uk and use the "ask the expert" feature.