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Hi guys,
My ex husband has recently started a debt management plan to repay his debt but i’m worried my home is at risk because of it. I’ve done some reading into the debt management plan and i know the creditors could still take action against him. My fear is my mortgage is also in his name although he’s not contributed to it for many years. Could they repossess my property if they changed their minds about the debt management plan or if he missed any payments
Hi LadyManor,
It would depend on the level of his debt, mortgage and the property value as to whether the creditors are likely to take action.
Theoretically they could but again it depends on the above factors whether they would or not.
The total debt is £12,000 but property has been valued at £150,000 with the mortgage only having £90,000 left to repay.
This is the reason i’m worried because i know there is equity which they could go after.
You’re correct the equity could be taken into consideration however if there are a number of different creditors then it reduces the amount owed to each one.
This can be important because even though the overall debt is £12,000 the individual creditors are less likely to take action if they are owed a small amount.
The first step a creditor would take would be to request a charge against your property, which guarantees they get money from the sale of the property, after the mortgage is repaid of course.
A court would need to grant the second charge and they only usually do that if payments are not being made and the debtor isn’t making an effort.
While i can’t say your property isn’t at risk or action couldn’t be taken, it would be unlikely if he’s making payments and only owes £12k in total to all creditors.
Ok but if he increases his debt or ignores his creditors my home could be at risk then?
Yes the fact he is joint on the mortgage means his creditors could pursue any equity in the property. Your only option in regards to that would be to seek legal advice about changing the mortgage.
Thank you for the advice it’s been a great help.
They are right that you home is in risk ,to be honest i never been experience this one and i am happy that i get a info about it cause i have also some debt which i am still paying.
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