bankruptcy and separation

[mikeydee44]

My girlfriend is separated (tho not legally) from her husband, who is now applying for bankruptcy. The marital home is owned by her Mother, so is not at risk, but is there any precautions she needs to take to avoid losing out financially herself? Btw, he IS very bitter and vindictive....
Thanks

[Andyvon]

I think that if any debts are owed to a creditor then they have the right to pursue the husband and the wife. If the husband is declared bankrupt then the wife becomes solely liable for the debt unless she too is declared bankrupt. I stand to be corrected on this Mike but I did know someone recently who was in much the same situation.

[themas]

The last post is rather incomplete. If the debts were in the sole name of the husband, the wife is not liable for them - this only applies if the debts are in joint names.

If your girl friend is still living in what was the marital home then it is possible the Official Receiver will question her husband about whether he made any contributions to the costs of the home (paying the mortgage, or for improvements). If he did, it might be argued that he has a beneficial interest in the home which would have to be bought out. Look at the Insolvency Service website - booklet on effects of bankruptcy on houses.

If your girl friend has any valuables which were provided by her husband (an expensive car or jewellery) there is a remote possibility - being vindictive - that he could try and convince the OR that he actually owned them and only allowed her to use them. This would almost certainly not stand up if he did try it, but if the OR was persuaded he might say the valuables had to be sold for the benefit of the creditors.