Good morning. Could you please give me advice on the following matter? My husband is a bankrupt and because of this I have opened an additional account which he uses. He wants to enroll himself on a plumbing course with taking 3 years interest free loan for payment (£4000 in total in 35 monthly payments). For this loan he wants to use that my account which I have opened for him. In order to protect myself just in case I thought to ask him to sign a promissory note stating that he has to repay me £4000 in 35 monthly payments. But now I am concerned will a promissory note of that type will have any validity considering that he is a bankrupt at the moment of signing it, and will I be still liable to that loan if he stops paying it? I look forward to receiving your suggestion. With kind regards, Olena.
System of Law: England-and-Wales
Thanks for your question. Please remember to AGREE my answer so that I am credited for my time.Does he have any assets such as property?
He used to have 6 properties which are at the moment are selling out by a bank he had mortgages with (he did not pay taxes for 10 years, was late with mortgage payments, that's why properties were arrested). We live in a 3 bedroom house with mortgage on his ex-wife, but mortgage paid by my husband.
You can have a promissory note but the downside is that if he does not pay, you are still personally liable for the loan.If he has remaining properties you could ask for a secure charge on this until the debt is discharged.This is simple process and costs only £50 for an application at the Land Registry.But if he defaults without this - you have no protection and I would personally avoid this. Please remember to rate my answer positive so that I am credited for my time. Thank you.
Called to the Bar in 2007
I'm just following up with you to see how everything is going. Did my answer help?UK-Justice
Thank you very much. You helped me a lot to gain confidence in talking to my husband. I told my husband that I was not going to let him use my account for a loan for his course, surprisingly he was ok with it , so his mother has given him money and he will pay himself for his course. Thanks a lot! Sincerely. Olena Todd
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