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Advice needed re debt

4 replies

tensmum1964 · 15/08/2024 11:42

Hi, I know I need to arrange a consultation with a solicitor before proceeding but thought it's better to have some knowledge/insight in advance. Hoping the mumsnet community can help so thank you in advance. My partner and myself jointly own a house and no longer have a mortgage. We would like to downsize and enjoy our retirement. I'm not yet retired but my partner is. My partner has some old debt that he's paying off with an agreed payment plan. Whilst discussing this he informed me that he has approx £3000 debt with the HMRC as since retiring he hasn't payed any tax on his pension. He has a Local authority workplace pension as well as a state pension and is over his tax allowance threshold. He worked for the LA for many years but for the last 20 yrs up until retiring had been self employed. I'm not sure if this is why his tax wasn't automatically deducted. Am i correct in assuming that any money from the sale of our house will have to be used to pay off this debt? He has a monthly payment plan with the other debt which is old loans and credit cards. If we sell the house would the payment plan be cancelled and the full amount be collected? Just to add, he is going to contact HMRC and start a payment plan.

OP posts:
YouveGotAFastCar · 15/08/2024 11:46

On the face of it, no - not unless they have a charging order on the house?

tensmum1964 · 15/08/2024 12:51

YouveGotAFastCar · 15/08/2024 11:46

On the face of it, no - not unless they have a charging order on the house?

Thank you. Does that mean that we could carry on with any payment plans, including credit card and loan ones, rather than use the profit, or would the payment plans be cancelled?

OP posts:
EliflurtleAndTheInfiniteMadness · 15/08/2024 13:08

tensmum1964 · 15/08/2024 12:51

Thank you. Does that mean that we could carry on with any payment plans, including credit card and loan ones, rather than use the profit, or would the payment plans be cancelled?

Unsecured debts don't work that way. If the debts are secured against the house they will have to be paid out. If he'd entered an agreement to pay out on sale or the court had allowed a charge to be placed on thr house that would have to be paid out. If those.things haven't happened it's just unsecured debt and not effected by house sale. If you're not 100% sure you should be able to check at land registry if the title is clear or has charges against it.

tensmum1964 · 15/08/2024 13:24

EliflurtleAndTheInfiniteMadness · 15/08/2024 13:08

Unsecured debts don't work that way. If the debts are secured against the house they will have to be paid out. If he'd entered an agreement to pay out on sale or the court had allowed a charge to be placed on thr house that would have to be paid out. If those.things haven't happened it's just unsecured debt and not effected by house sale. If you're not 100% sure you should be able to check at land registry if the title is clear or has charges against it.

Thank you. That is really helpful. I'm 99% sure that they are unsecured but obviously will check.

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