A married - but separated - couple jointly own a home that is sold with approximately £40,000 profit which is split between the two. Following the sale the wife declares bankruptcy. Is the husband at any time legally responsible for any of the wife's debts that are now the subject of the bankruptcy?
Were the debts secured on the home? Were they joint loans, etc.? If so the husband may be liable for them. If they are credit cards or unsecured loans and were only taken out in the wife's name then the husband shouldn't be liable and they will be written off with the BR.
Hi, thanks for the response. As far as I know the debts are credit cards and bank overdrafts that are not secured on the house. My friend (the husband) is concerned that if the wife files for bankruptcy after the house has been sold the profit will be regarded as a joint asset that will be used to pay the wife's debt.
My thoughts are that they will only seek her half of the profit as they are her debts, and that his beneficial interest in the property is safe, but I thought I'd get the help of professionals. Thanks!
quote:Originally posted by info6 My thoughts are that they will only seek her half of the profit as they are her debts, and that his beneficial interest in the property is safe, but I thought I'd get the help of professionals. Thanks!
Yes, that is my understanding as well. So the £20k profit that is the wife's will be used to pay her creditors.
Is the husband at any time legally responsible
Posted - 30 May 2009 : 13:45:06
