MY PARTNER MOVED IN WITH MY DAUGHTER AND I 6 MONTHS AGO. HE HAS DEBTS OF APPROX 45.000 WHICH HE NOW KNOWS HE WILL NEVER PAY OFF AND INTEREST IS BEING ADDED. IM WORRIED ABOUT WHAT EFFECTS THERE WOULD BE ON ME IF HE FILES FOR BANCRUPTCY OR SHOULD WE LOOK AT IVA? MY HOUSE IS COUNCIL, AND I HAVE NO CAR OR ASSETS BUT WHAT EFFECTS WOULD BANCRUPCY HAVE ON ME FINANCIALY? MY PARTNER IS SELF EMPLOYED AS A COURIER DELIVERY AND IS WORRIED IF HIS VAN WOULD BE TAKEN?
If you have no joint finances then it won't affect you.
I suggest you have a word with an expert. Visit www.iva.com for a list of companies. Give one or two a ring for some free advice and they will explain all options to you.
As he is self employed your partner really does need to speak to an expert. Have a look at www.iva.com and speak to a couple or three and take it from there.
There is nothing to stop him from trading and you will be unaffected. However, he would need to check the situation concerning any lease or hire purchase on the van as these agreements could be terminated in bankruptcy. He should get some free advice from an IP firm.
I think that his van could be under risk if he enters into bankruptcy proceedings if it is subject to a finance agreement. He could check out with the finance company to see what their view would be in advance of making his decision. If the van is not financed, then it would be expempt from the bankruptcy given that it is essential for his business.
He could also consider an IVA or a DMP if he feels that his business might be affected by bankruptcuy proceedings.
The best thing is to have a chat with a couple of companies to discuss the situation in more detail to understand the best option for him and how anything could affect you. If you have no joint debts with him your credit record will not be affected. Your home is safe as it is not your asset and they are his debts.
Bottom line is you wil be fine and there will be a way for him to sort his debts out it is just a matter of how and what needs to happen.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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