When a relationship ends, debts may not end with it. A couple may find themselves dealing with debts incurred during or after the relationship. This can be a problem if one person is unwilling to take responsibility for his or her debts. If the situation goes unaddressed, it can affect the other individual to the point of debt being attached to a home.
If you have been issued with a charging order due to credit card debt of an ex or any other debt related charging order, contact us immediately for help and advice.
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After a couple ends a relationship, it is not unusual for an ex to incur credit card charges as a part of daily life. If the credit card account is a remnant of the relationship, it may be held jointly with the other person. In this case, both parties are liable for repayment of all charges. If the ex who made the charges does not pay the bill, the creditor can go after the other person for the full amount owed.
A couple should repay their joint bills and close their joint accounts when the relationship ends
If this is not done, any debt accrued on a joint account can pose a problem for both parties. If one ex remains in a home that was the former residence of the other as well, he or she may need to get a court order stating that the other person has no interest in the property. This protects the ex in residence should the other person accumulate debts in his or her own name.
Unfortunately, if the debt is accrued on a joint account with the ex in residence at the home, things may not be as simple
The ex in residence may wind up on the receiving end of a charging order. This is an order obtained from a judge or court by a creditor, stating that property of the debtor has been charged with the debt plus interest and other charges.
If the debt is not held jointly and the other party had no interest in the property, the court should remove the charging order. However, if the debt was accumulated on a joint credit card account, the charging order may stand even if the individual accruing the debt did not have an interest in the property. Both parties are liable for debt repayment so the ex in residence must clear the debt if the other individual will not.
With a charging order, the unpaid debt will not be collected until the property is sold.
If the ex in residence wants to recoup the money from the individual who accumulated the debt, this becomes a personal matter. The ex in residence should contact a solicitor to determine if he or she has any recourse.
Couples should think carefully before taking out credit in both their names. It the relationship does not end up lasting forever and a joint credit account is not closed, the negative effect can be felt for years. It can cost an ex time and money to recoup debt accumulated by the other person. In addition, there is no guarantee that money will be recouped.