bankrupt

[jubbles]

my daughter and fiance have split up they had a mortgage together which she has been paying half of and they had a car on finance which she took a loan out to cover so it was in her name only she has also paid the overdraft off even though it was in joint names she has just found that her ex has not been paying anything off the mortgage and it is in arrears what can she do and does it mean she will have to make herself bankrupt

[CheekyChops]

Who lives in the house now? Is it up for sale? How far in arrears is the mortgage?

[CheekyChops]

If this appears 3 times, I apologise - I've posted twice already and my reply has disappeared, twice.

Who lives in the house now? Is it up for sale? How far in arrears is the mortgage?

If it doesn't work this time, I give up :-(

[themas]

1. If she hasn't already done it, she must make sure the joint bank account is closed. Otherwise he could run up another overdraft on it. If the bank refuses to close it without his signature (& he refuses to sign) she must put the bank on notice in writing that she will not be using the account herself and will not be responsible for any future overdraft. Send it recorded delivery and keep a copy.

2. Can she afford the payments on the mortgage and car? If not, she needs some professional money advice from a free service such as CCCS or local CAB. Do not go to any of the outfits that charge a fee.

3. If possible, the property should be sold. If there is any equity a split of it should be agreed with the ex-partner (may be difficult to do) but it should take into account the mortgage payments he should have made and hasn't.

4. If there is no equity in the property the mortgage lender will probably not agree to a sale. If the mortgage then stays in arrears it will almost certainly be repossessed. If there is then a shortfall (i.e. what the lender gets for the property is less than the amount due on the mortgage and charges etc.) then both your daughter & her ex are liable for the full amount. The lender can chase either (or both) of them.

5. Bankruptcy might be one solution eventually - depending on her overall financial position - but it is not inevitable and may well not be her best option. If she does go bankrupt her liability for any shortfall on the mortgage would be written off in the bankruptcy, as would any outstanding debt on the car loan and any other debts she has.

[jubbles]

no one lives in the house the arrears are about 2 thousand pounds she has used any savings she has and is basically struggling one option was to let the house out but it needs work and she has no money we can help but she is not wanting us to put any of our money (which is limited ) into it as she feels it is prolonging the inevitable and again he is just ignoring everything the joint account is closed and as i say she paid off the overdraft as he was still using it at first we just feel she is being punished again and again

[jubbles]

the house has been on the market since may 2008