Left with ex wife's debt

[Michael Peoples]

These are good questions but unfortunately I am not a lawyer so I would not be able to answer them with any degree of certainty. However it may be best to wait and see what happens and then yopur ex can seek legal advice or speak to the local CAB who would be able to answer the questions more definitively.

Personally I would think that the debt defaulted in 2010 when you entered the IVA and the 6 years commenced then because until that time the debt was being repaid so need to chase your ex for it. However it is only a guess.

[MelanieGiles]

With joint and several liability debts, the timescale for statute barring is determined from the last attempt to contact either of you. And I terms of property transactions, such as mortgages, the timescale is 12 and not 6 years.

[exonian]

Thanks Michael & Melanie for your posts.

Our house was EVENTUALLY sold, so mortgage was repaid, although my ex wife's delaying tactics, (i.e. taking the house off the market without consulting me), led to us having to sell our property quickly and at a cut rate price, therefore nullifying our equity, and only "breaking even".

The only grey area is this joint loan within my IVA, and the timing/events parameters of possibly initiating the 6 year statute barred debt rules.

To be honest, when this loan issue arose recently, it had my wife and I contemplating me commencing bankruptcy proceedings, because it feels like my debt journey possibly won't end when my IVA finishes in the last quarter of next year, despite my genuine best intentions where the loan is concerned, i.e. including the WHOLE loan in my divorce settlement AND my IVA.
It would be tragic to do that as I am so close to finishing my IVA.

Would you advise that I raise this issue with my IVA ISP, or just see how things pan out?

If I am left "holding another financial baby", with this joint loan balance, after my IVA has finished, I don't know how I will address it..... bankruptcy?, another IVA?, DMP?!!!

The loan was for approx £24k, so if the 25% IVA dividend to creditors is realised, (via my monthly IVA payments AND monies from PPI refunds being paid into the IVA), the loan balance should be approx £18k, but will interest be applied to this balance?
I would need to seek a payment solution that freezes accrued interest.

I realise this situation may not arise if the statute barred debt rule criteria is met, but it's just the not knowing that affects you!!!


exonian

[Michael Peoples]

The debt is not legally yours so bankruptcy or anything else would not protect your ex. She will have to deal with this as and when the creditor contacts her and it will then be up to you whether or not to help her.

[canaries]

She's your ex and you don't like her, so ignore the issue, not your problem.

[MelanieGiles]

It's 12 years for mortgage shortfalls as I said earlier, and if the house has been sold, why are you worrying if your ex-partner is to be saddled with a debt at this stage? Is this likely to put her into hardship herself, in which case she can always file for bankruptcy to get rid of the debt.

[exonian]

Hi Melanie

Thanks for the post.

I think it's this.....
Putting aside the bad feelings that my ex and I have, and my negative opinion of her, my taking on the whole, (as I thought), of the joint loan in my IVA, (in order to expedite and bring to a close divorce proceedings because of escalating legal costs and animosity), was done honourably by myself, (with my wife's agreement), via the divorce financial settlement.
I am POSITIVE that my ex, if chased by the creditor, will believe that I tricked her.

Don't get me wrong, my ex deserves to pay her share, and there will be immense justice if she had to pay it, however she will not see it that way at all, and a monster will be awakened I'm sure!!!

exonian

[MelanieGiles]

Oh dear - I am sure that this is something you could do without right now, but matrimonial lawyers should be doing more for their clients when it relates to the transfer of responsibility for debts, as you can only do this with the lender's express permission.