If a spouse gets into stupid-sized personal debt...

If a spouse gets into stupid-sized personal debt...

Author
Discussion

King Herald

Original Poster:

23,501 posts

222 months

Wednesday 30th September 2009
quotequote all
...and the bailiffs are called in, can they take property that is joint owned in the relationship.

Hypothetically speaking, of course, (as she would surely never be so pigheadedly stupid......) if my wife were to owe thousands and people wanted to start collecting on it, would they have any rights to our house, or could they come in and help themselves to the tv etc?

Could I, hypothetically speaking of course, have her name taken off the house papers, as it is currently in both our names? We still owe 50% mortgage on it.


LittleMiss

173 posts

181 months

Wednesday 30th September 2009
quotequote all
It depends, are the debts secured against the property?

King Herald

Original Poster:

23,501 posts

222 months

Wednesday 30th September 2009
quotequote all
LittleMiss said:
It depends, are the debts secured against the property?
Just credit cards, as far as I know.....

LittleMiss

173 posts

181 months

Wednesday 30th September 2009
quotequote all
If it's unsecured debt then they can't force the sale of your house.

Time to start cutting up cards and negotiating with the companies to freeze the debt and start a repayment programme.

King Herald

Original Poster:

23,501 posts

222 months

Wednesday 30th September 2009
quotequote all
LittleMiss said:
If it's unsecured debt then they can't force the sale of your house.

Time to start cutting up cards and negotiating with the companies to freeze the debt and start a repayment programme.
That is a relief.
She's cut up the cards, seems to be paying them off now, with help from me, but she still has a bank debit card to her own account, and now that is getting a steadily darker shade of red with little purchases here and there that she shouldn't really be buying. rage

I just wish savings accounts would fill up the same way credit cards do: just a little here, a little there, and voila: £500

ringram

14,700 posts

254 months

Wednesday 30th September 2009
quotequote all
Stop bailing her out then...
Moral Hazard.

Edited by ringram on Wednesday 30th September 19:40

CatherineJ

9,586 posts

249 months

Wednesday 30th September 2009
quotequote all
If it is unsecured debt they could make her bankrupt.

If that happens then they can take control of her beneficial interest in their home, assuming that they own and don't rent.

King Herald

Original Poster:

23,501 posts

222 months

Wednesday 30th September 2009
quotequote all
ringram said:
Stop bailing her out then...
Moral Hazard.
It is getting very close to being a health hazard!

Lurking Lawyer

4,535 posts

231 months

Wednesday 30th September 2009
quotequote all
LittleMiss said:
If it's unsecured debt then they can't force the sale of your house.
Not immediately.

But they can apply for a charging order over her share of the house (assuming of course that it is jointly owned) once they have a judgment for a cash sum. And once they have that, they can seek an order for sale.

They may not get it - but would you want to take that chance....? It elicits at least partial payment, more often than not.

Persuading a bailiff that goods are jointly owned may prove to be difficult unless you have receipts.

Be aware that they don't have any automatic right of access. Don't let them in and it makes their job an awful lot harder.....

King Herald

Original Poster:

23,501 posts

222 months

Wednesday 30th September 2009
quotequote all
Lurking Lawyer said:
LittleMiss said:
If it's unsecured debt then they can't force the sale of your house.
Not immediately.

But they can apply for a charging order over her share of the house (assuming of course that it is jointly owned) once they have a judgment for a cash sum. And once they have that, they can seek an order for sale.

They may not get it - but would you want to take that chance....? It elicits at least partial payment, more often than not.

Persuading a bailiff that goods are jointly owned may prove to be difficult unless you have receipts.

Be aware that they don't have any automatic right of access. Don't let them in and it makes their job an awful lot harder.....
I don't think it is anywhere near the bailiff level yet, I hope anyway, but I'm looking for useful factual info to scare her with a little bit.

If push comes to shove I can bail her out, at the moment, but it bugs me that I should have to do that when she has her own job and all, hypothetically speaking, of course.....

Thanks for the info.