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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 16130
Experience:  30 years as a practising solicitor.
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I have a question about debt and live in Scotland thanks

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Hi I have a question about debt and live in Scotland thanks

Thanks for your question. I am a solicitor in Scotland and can help you with your question today. Can you explain your situation a little more please?

Customer: replied 3 days ago.
Hi thanks. I've accumulated quite a bit of debt (Visa) from a previous marriage and am now with a new partner. I am paying this off regularly but would like to know if anything happened to me would this affect my partners credit rating, or be left to her?

Thank you for your reply. Your personal debts are not those of your partner and cannot affect her credit rating or be claimed from her. However if anything happened to you any joint assets you have would be vulnerable. The reason for this is that your estate would remain liable for your debts and if you have assets, or joint assets at the date of your death, your creditors could ask for these to be liquidated to pay the balance of what is owed. What you could do is take out a term life policy which would pay out enough to repay your debts on your death. Generally the premiums for this type of policy are very low and you could cancel it once the debt is fully repaid, or not as the case may be. I hope this helped you today. Please do let me know if I can clarify anything, I am always happy to help.

Customer: replied 3 days ago.
Hi this really helps, as things stand she owns her own house so I wanted to make sure this couldn't impact her adversely in any way. We don't have joint assets, and have kept them separate. I will take you up on the suggestion of term life cover, seems a great idea. One additional question, I am in a steady job and my Credit rating etc all seem fine, but in the current economic climate, what are my options if any if I lost my job and found I couldn't keep up with the monthly payments. I've heard about Trust Deeds but what is impact of entering something like this, rather than personal bankruptcy or equivalent?

You can enter a trust deed or go bankrupt but that should be a last resort rather than a first as it will mess your credit rating up for years. Most creditors are sympathetic to the current issues we all face and will reach some kind of accommodation with you. I hope this helped you today. Please do let me know if I can clarify anything, I am always happy to help.

JGM and 2 other Scots Law Specialists are ready to help you
Customer: replied 3 days ago.
You have been really helpful, many thanks for putting my mind at rest, cheers.