What happens if I go bankrupt with my partner?
What happens if I go bankrupt with my partner?
If your joint account is overdraw this debt will be included in your bankruptcy. However because it is in joint names with your partner they will still be liable to repay the overdraft in full.
How can I help my partner with bankruptcy?
If you need more help regarding bankruptcy and its impact on your partner, please speak to a debt adviser. Speaking to a debt advisor can help you go through details of your situation. They can look at your financial statement to identify other options. And put your mind at ease before proceeding with bankruptcy.
Can a debt be passed to another person in bankruptcy?
In a bankruptcy debts cannot be passed to someone else, if any of the debts were in joint names, or had a guarantor, then the other person would be pursued for their liability for the debt. There are circumstances, where your partner will be liable for your debt.
How does bankruptcy affect my partner’s household bills?
The person who owes the money or the bankruptee will not always be able to pay any more than the amount they have available to pay. In which case, your partner will be expected to pay their fair share of the household bills. This will result in a calculation about how much money they have left over to pay the debt.
If your joint account is overdraw this debt will be included in your bankruptcy. However because it is in joint names with your partner they will still be liable to repay the overdraft in full.
If you need more help regarding bankruptcy and its impact on your partner, please speak to a debt adviser. Speaking to a debt advisor can help you go through details of your situation. They can look at your financial statement to identify other options. And put your mind at ease before proceeding with bankruptcy.
How does bankruptcy affect your partner’s credit rating?
In most cases, your partner’s credit rating will not be affected if you go bankrupt. Especially, if there is no financial link between yourself and your partner. This is because your credit rating is personal to you and will only show details of your credit history and any financial associations that may exist.
How does bankruptcy affect a spouse in a business?
If your spouse has raised funds on the property to invest in a business this must come off their half share. In addition, if you have put in different amounts as the deposit this may be reflected in the equity split. It may be possible to agree with the Trustee to buy out a bankrupt spouse’s share of the equity.