Divorced, Joint NE Loan, Personal Insolvency?

C

Changling

Registered User
Messages
20
I'm looking for advice please..

My situation is that myself and ex-husband owned 2 properties, separated, and the bank permitted us to sell both properties leaving a substantial NE loan of 400k in both names.
There are no assets or children and we recently divorced.
My ex does not work, does not contribute to loan repayments and I can't see this changing.

I am in full time employment but cannot afford to make full repayments on my own (currently renting) and the bank have refused a proposal to spilt the current NE loan. I have not signed any other agreement since the initial mortgage agreements.

I'm wondering if I should appeal the bank decision to split the loan which, will mean I put myself under financial pressure to repay a 200k loan for the rest of my working life or wait for the Personal Insolvency Bill and see if there's another way to tackle this situation.
I'm not sure how the PIB deals with divorced couples who are joint and severally liable.
Would anyone have any advice please?
 
Hi Changling

The Personal Insolvency Bill is only for those who are insolvent. It is not for people who are "under financial pressure".

To qualify as insolvent, you must be unable to meet your payments as they fall due. Is this the case?

Unfortunately, the Act has done nothing for people like you who are acting responsibly, but who are jointly and severally liable with someone who is insolvent or jointly and severally liable. In fact, you are probably in a worse position after the Act is passed as your husband could opt for bankruptcy which copperfastens your liability for the loan.

The UK bankruptcy regime is much more user-friendly. You could either avail of this or threaten to avail of it.

If you are agreeing to repay €100,000 on your own, I think that the bank should be delighted with this. I say "should" and not "would".

What is your current salary?
Is going to the UK an option?

What is the interest rate on the mortgage? If the bank got out of a cheap tracker, you could argue that they should give you a discount to reflect their savings.

Which bank is it?
 
Hi Brendan,

Thanks for the prompt reply.

As it stands, I cannot meet the full repayment as it falls due. I have rent and another personal loan to pay.

I have asked the bank (let's just say a "Pillar" bank) to split the loans into both names making us both liable for 200k each, but they have refused based on the fact that my ex does not contribute/engage. There is a tracker mortgage involved.

The UK is not an option for me.
Salary ~65k
 
If the UK is not an option, then you can try one of the following

Irish bankruptcy - You will be free of your debts in 3 years. The bank might dispute this in court.

A Debt Settlement Arrangement - I wouldn't bother with this. It will last 6 years and the bank will probably veto it.

Brendan
 
You must log in or register to reply here.
Back
Top