Author Topic: 14,000 Debts From Previous Marriage  (Read 1028 times)

marky789

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14,000 Debts From Previous Marriage
« on: Aug 27, 2010, 09:54:20 AM »
Hi

I was married in 1994 and took out a loan agreement for 14,000 with my then husband and his gran who lived with us. The loan was for home improvements and when we divorced in 1998 my the house was sold. My husband declared himself bankrupt which meant his gran and me were left with the loan. Recently his gran has died and the loan company are chasing me for the outstanding balance.

What should I do?

merky587

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Re: 14,000 Debts From Previous Marriage
« Reply #1 on: Aug 27, 2010, 10:00:33 AM »
You have a number of options available to you.

1. Come to an agreement to pay the loan company what you can afford a month;

2. If your total debts are less than £15,000 and your monthly disposable income is less than £50 you could take out a Debt Relief Order. If you dont mind a poor credit rating (ie., your not looking for credit for the next 6 years) this option would clear the debts after 1 year and free you of the burden.

3. You could look at a debt management plan where you pay one monthly installment which is distributed evenly to all your creditors.

Whichever option you choose, dealing with your debts is the first step in a debt free life.

Hope that helps!
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Steven Jackson

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Re: 14,000 Debts From Previous Marriage
« Reply #2 on: Aug 27, 2010, 11:28:00 AM »
Hi there Marky789
 
It sounds as though the loan was originally secured against but remained unpaid when the house was sold. Unfortunately given your ex declared himself bankrupt you now bear sole responsibility for paying the outstanding debt.
 
What you do will really depend on your financial circumstances and could range from offering a lump sum to settle the debt, some form of debt management plan or declaring yourself bankrupt / doing a debt relief order.
 
Can you give us a little more information about your situation. Are you a homewner again? Can you afford to make and offer to settle the debt or pay a monthly amount towards it?
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