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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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My husband is self employed. he has accrued some debt

Customer Question

hi
my husband is self employed. he has accrued some debt - not a lot and its manageable. he is winding up his business and is looking for employment. he has been offered an opportunity to do contract work - however he would still be self employed. I am concerned that he continues to loose money. I can afford the mortgage and paying off his debts. would it be possible for me to take responsibility for his debts in return for his share of the house? ie. he would sign over his share to me and I would pay off his debts but if he lost more money in the future we would not lose the house?
thanks
Susan
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Do you own the house 50/50 currently? Does the value of the debts roughly equal his share in the house? Kind regards AJ
Customer: replied 1 year ago.
yes the house is in joint names but we only have about £60K of equity. his debts are around 25K but there would be legal fees etc associated with the transfer of the mortgage etc.
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Ultimately yes you could pay off his debts in return for the house being transferred into your name. The only issue you have is the following:(i) Any mortgage would still remain the responsibility of you both;(ii) You would need an estate agent or professional valuer to confirm that it is a fair valuation.If you the value of the debts are far less than his share in the property and he subsequently went bankrupt (within 5 years), then it is possible that any personal representative in bankruptcy could ask you to personally make up the shortfall. This would only actually apply to debts still existing at the time the transfer is made - if he incur new debts, then it is unlikely you would be personally pursued. I would suggest you obtain some professional opinion to confirm that the price you pay for his share can be justified as not being an under value in the circumstances.
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Customer: replied 1 year ago.
thanks you have given us enough to go to a solicitor and speak to the bank with.
Expert:  Alex J. replied 1 year ago.
Thank you. ***** can assist any further please do not hesitate to contact me. Kind regards AJ

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