Question:

My friends husband has left the country and gone to live in thailand he got into around £20,000 of debt , £13,000 of which my friend didnt know about they have a house in joint names and two children whom he has abandoned

He was threatening to go bankrupt or get an iva. He told my friend she could keep the house but fled the country before anything legal was drawn up. What will happen if he doesnt come back to the uk and ignores his bills which i am assuming he thinks he can do? She doesnt know where he is and is getting no help from his friends and family. She is literally stuck in limbo, but isnt sure what will happen. Please help

Answer:

If they have joint debts together and a mortgage together, as long as she pays the jointly held debts and bills everything will be fine.

If she cannot afford to pay any joint debts or debts in both names, the creditors will chase both of them for payment and since she is easier to contact, it may seem they are just chasing her.

If he was to go bankrupt and is still on the property with her, then half the property is still his and would be viewed as an asset in his bankruptcy.

The Official Receiver or Trustee in his bankruptcy may allow her, your friend, to buy out any equity that is her husband's half to be paid into the bankruptcy; if there is no equity the OR may allow her to buy out the OR's interest in the property under a low cost buy-out scheme.

Thank you for letting me help you.

Jon

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