Debt forces woman out of her home

A divorced woman of more than twenty years may be pushed out of her home as a result of Debt accrued by her ex-husband in the late 1980’s. The shocked woman is devastated that a change in the law, has allowed the Inland Revenue to re-pursue this overdue debt.

Mrs Avis may hanve to declare bankruptcy or sell her house and posessions to find the sum required which has since escalated to £73,000. Mrs Avis who separated from her husband over twenty years ago has been told that her ex-husband’s creditors can demand the sale of her home in order to retrieve the sum owed to them. She is seriously looking for a possible debt solution to this problem.

Relationships & Finance: ’til debt do you part

This new decision could have serious consequences for hundreds of divorced couples whose ex partners become entwined in debt. If you’ve divorced with debt, it may be time for to get debt advice.

The usual divorce procedure allows solicitors to work out an amicable agreement over who will continue to live in a property which was previously the matrimonial nest.  However, the new ruling will mean that these terms are irrelevant if an ex-spouse has declared bankruptcy.  In this case, the creditors of the accrued debt are entitled to receive their money, even if it means selling the home.

Mrs Avis’s husband feels extremely guilty about the fact that his ex-wife may lose her home because of an old debt which escalated with interest, court and administration costs.  He states that the bankruptcy arose as a result of the Inland Revenue (IR) forcing him to become insolvent for demands of less than £3,000.  He further states that he paid the IR £2,500 and assumed that the debt had been settled.

This new change in the law could make a lot of divorced couples feel very uneasy about their present divorce settlements.