Managing Debts
WHO IS RESPONSIBLE?
Broadly speaking, a spouse/partner will not be responsible for debts incurred by the other spouse/partner alone. But there are exceptions; a spouse/partner will usually be responsible for the other’s unpaid council tax bills and sometimes other outgoings on the home. You also share responsibility for joint debts, say from a joint account, or for joint mortgage repayments or rent.
If your spouse/partner has left the home leaving behind high unpaid household bills, the date of separation is important. If he or she has failed to pay the council tax, you must inform the local authority of the date of separation and thus at least cut off your responsibility for paying your spouse/partner’s share of the council tax debt accruing after that. Your council tax bill will also be reduced if there is now only one adult living in the home. By advising the gas, electricity and telephone companies, you can also get the meters read as near to the separation date as possible and ask for a transfer of the accounts into your own name.
This will, obviously, leave you with having to pay future bills and so may not be appropriate, but it can be one way of avoiding responsibility for previously built-up debts.
If on the other hand you are paying maintenance to your ex, but he or she is not paying the bills, this leaves you in a difficulty. As long as your name is on the account, the primary responsibility is yours. If the agreement is that your ex will pay the bills, make sure that the accounts are transferred into his or her name.
DON’T AVOID DEBT
Although it may be tempting to try to avoid your creditors, you may well find that by contacting them and showing that you are willing to try to repay them you can work out a realistic level of repayment.
Also, it will be less expensive for them to agree a repayment with you then to incur extra legal costs in having to take you to court.
Consult the experts. For more information or a free legal opinion telephone 020-7381-8111 (24 hour service) or email law@rhplaw.co.uk.
