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How Will My Bankruptcy Effect My Husband And His Job?
Question:
Unfortunately I have managed to accrue debt amounting to approx 15k, My husband is in the armed forces, and I am now at the point of considering bankruptcy.
I am currently on Incapacity benefit. My concern however is, firstly I only have one joint debt with my husband which is for our car. We need this vehicle, or at least we need a car.
Also if I went into bankruptcy would my husband also have to do the same, and in truth would it be better for us both to do this, so as to enable us to start afresh?
We would like to be able to buy a house in the future, and are both aware that at the moment with the debts we both have we have not a hope in hell of ever getting to this point.
What would happen with our current bank accounts? Mobile phone contracts? Also would we have a court official come to the house to make an inventory of goods we own? Would we have to sell all of our posessions?
We are also worried about how this would impact on my husbands career and his job.
I almost feel we are in a no win situation, but if you add both of our debts together they must come close to 20k inclusive. We are finding it difficult to even buy food monthly now as a result of the mounting bills etc.
Would filing for bankruptcy also affect our utility bills, sky tv etc?
Answer:
If you were to go bankrupt and the unsecured debts are in just your name, it does not affect your husband.
If the car was an issue in bankruptcy, it would then become your husband’s sole responsibility as it is a jointly held debt. And it may not be an issue as in bankruptcy you are allowed a car if you can show a need for it and it is of modest value and you can afford the payments.
You are allowed your basic bills such as a mobile phone, Internet, landline, utility, etc. In addition it is just your bankruptcy so again your husband is allowed all this as well.
Also, no one will come out to your house and all your personal possessions are fine, unless you own some expensive jewelry or antiques.
If it is just your bankruptcy, which if all the debts are in your name, it does not impact your husband as he is not a part of your bankruptcy.
One issue is jointly held bank accounts: any account that has your name on it will be frozen. If you can have your name removed prior to going bankrupt that is good, if not, he may want to open his own account.
You will be allowed a basic account, and would want to inquire with some local banks regarding this.
As for the future and buying a house, it maybe better to dwell in the here and now and get this situation sorted. Going bankrupt does not mean you will never own a property as there are many factors involved in buying a property and credit is only one of those.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: How Will My Bankruptcy Effect My Husband And His Job?