Sunday Express Skeleton 24Th November...
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Debt responsability, if my partner/spouse was in debt, could the debt collector go after assets that only belong to me?
Basically, I buy a house in my name cash, my spouse has a house with a mortgage, if the mortgage defaults and there isnt enough equity to pay off the amount owed could they go after selling my property to recover the debt owed by my spouse on the mortgaged property.
Given that both properties are in one name only ie my spouses in their name and my property in my name and we both live together in my property.
Just if the case is they cant sell my property all well and good, if they can, then maybe I need to look into away so they cant.
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Given that both properties are in one name only ie my spouses in their name and my property in my name and we both live together in my property.
Just if the case is they cant sell my property all well and good, if they can, then maybe I need to look into away so they cant.
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My husband and i were in process of divorce in Arizona. He filed bankruptcy. I ended up with the bills, therefore i also had to file bankruptcy as well. I was informed that married means shared bills in any state. Especially if you filed taxes together or paid debts together with communal income. Check the laws in ur state to be sure!!
Assuming England or Wales: potentially YES. You are married & both living in the house which is in your name. Your spouse can therefore get a "beneficial interest" in your house, whether he/she has made any contribution to the costs of it or not. The house in his/her name is probably irrelevant.
For the mortgage lender to be able to get at your house they would first have to get a County Court Judgement against your spouse for the amount owed. Your spouse would have the opportunity to put an instalment payment offer (£x per month) to the Court but the mortgage lender might refuse this & the Court might decide the offer should be rejected. The Court decision might then be one which your spouse cannot comply with - e.g. to pay the full sum forthwith.
Once your spouse has defaulted on this judgement the lender can return to Court for enforcement, which can include getting a charging order on your house. You would have the opportunity to dispute this in Court. If they get a charging order they can then return to Court to ask for an order for sale.
The above is an outline - it can become complicated. You really need professional advice from a family law solicitor or an experienced debt adviser or both.
Note that your spouse going bankrupt does not solve the problem - the Official Receiver would adopt the same attitude as regards beneficial interest.
It might be that your simplest solution would be to get a mortgage on your house to pay off the shortfall on your spouse's one - if you can afford one.
For the mortgage lender to be able to get at your house they would first have to get a County Court Judgement against your spouse for the amount owed. Your spouse would have the opportunity to put an instalment payment offer (£x per month) to the Court but the mortgage lender might refuse this & the Court might decide the offer should be rejected. The Court decision might then be one which your spouse cannot comply with - e.g. to pay the full sum forthwith.
Once your spouse has defaulted on this judgement the lender can return to Court for enforcement, which can include getting a charging order on your house. You would have the opportunity to dispute this in Court. If they get a charging order they can then return to Court to ask for an order for sale.
The above is an outline - it can become complicated. You really need professional advice from a family law solicitor or an experienced debt adviser or both.
Note that your spouse going bankrupt does not solve the problem - the Official Receiver would adopt the same attitude as regards beneficial interest.
It might be that your simplest solution would be to get a mortgage on your house to pay off the shortfall on your spouse's one - if you can afford one.
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