to ask for some guidance on a financial mess

[thompson369]

Short as possible back story - DH bought a house with ex-P in 2005, he moved out in 2009 but continued paying his share of mortgage and bills whilst house was up for sale. In 2010 he applied to take on the (approx) £90k mortgage on a salary of about £30k with a cash deposit of £15k but the bank turned him down - ex couldn't get a mortgage either.

Very naively he did not check whether the ex was making mortgage payments and yes you guessed it, she wasn't, was just keeping the cash from DH. Fast forward to last year and a debt collector was knocking on DH's mum's door regarding mortgage arrears of £2.5k. House was subsequently repossessed and today a letter has arrived stating that the overall debt now due based on arrears and shortfall following sale of house are £37k.

The ex has declared herself bankrupt about 15 months ago so this will all fall on DH. We've only been married a short while - he lives in my house (he isn't named on the mortgage) and there is about £80k of equity in it (on a good day). We have one DD together, I have two other DDs from previous marriage. I also earn a good salary so tend to pay for most of the things at home but he contributes an amount we are both happy with.

I suppose my questions are:

1. Does anyone have any advice on the best way forward - where is the best place to get some advice on this?
   
2. All our income and assets are separate (he basically has no assets!) - can they come after "my" income/assets in any way?
   
3. Do you think there are any grounds to complain seeing as he wanted to take on the mortgage three years ago and the lender said no?
   
   Thanks for reading this far if you have - I've seen some excellent advice given on many topics here so I am hoping you can give me some useful pointers. He knows he has been naive and should have kept his eye on the ball more but now needs to try to resolve this mess!

[thompson369]

Thanks - I'm going to get him to see the CAB asap. Luckily there are no children from the previous relationship and he wasn't married to the ex so no payments to her.

[celestialsquirrels]

He can be made bankrupt if he can show that he can't pay his debts. Your house will be safe as it is in your name and he has not contributed to it. any other assets he owns will be at risk, except pension. so eg if he has isas or investments. He needs to think whether his job is such thst bankruptcy would be a problem eg if he is in a job involving financial regulation, money handling or is a company director. He will be allowed to keep such income as he needs to feed house clothe himself, a car if he needs it for getting to work and tools of his trade. He will also be allowed to meet CSA required child support payments and court ordered maintenance of 1st wife. If he has excess income above that, that may be taken by the official receiver/his trustee to set against the debts of his estate.

He needs some advice. If you live in London he can go to the bankruptcy court at the royal courts of justice where there is a CAB bureau which only advises on bankruptcy and it is first come first serve. Open 10-1 every day, if he gets there at 9-9.15 he will be at the head of the queue.
Otherwise speak to cab in your area or the national debt helpline. Do NOT go to any commercial debt management companies, I can't emphasise that enough.

Hth

[JazzDalek]

CAB deal with this sort of thing all the time (I volunteer there). Most bureaux will have a debt specialist. I'd call their Adviceline if I were you.

www.adviceguide.org.uk/wales/about_this_site/get_advice.htm

[thompson369]

I've posted a similar thread on money saving expert, will see what that leads to.

[thompson369]

I don't think he can declare as he earns £30k a year.
Yes he does have evidence as he made the payments from his bank account to hers.

[thompson369]

I'm trying to keep in mind that this is just a number, I have three healthy DDs and earn enough to support us all - that said if I ever bumped into the ex the facade would slip!!

[RedHelenB]

Could he declare himself bankrupt? If he hasn't contributed to your mortgage then you would be safe regarding your house.

[OwlinaTree]

Does he have any evidence he paid the mortgage payments to his ex? Have you tried CAB?

[comingintomyown]

No idea I am afraid but just wanted to say how amazingly un bitter you sound !!

[abitlikemollflanders]

have you tried the forums on moneysavingexpert? they have some fab posters who give really sound advice and there seems to be nothing they haven't heard before. Worth a try if no one can help you on here..
Good luck