Credit card debt

[belletinker]

I've just found out my husband has a large debt on his credit card. If anything were to happen to him (ie die)would I be liable to pay this debt? All my finances are separate from his. We are thinking of separating for other reasons so should I divorce him rather than just separate?

[Ethel]

In a roundabout way you would pay - it would come out f his estate, so less would go to his beneficiaries, assuming you are one.

Don't divorce him just on the grounds you would be liable for his debts, because unless they are in joint names, you won't be.

[what..the?]

If the credit card is purely in his name then you are not liable, if he cannot pay it and he has insufficent assets he will do a repayment plan, or go bankrupt.

If he was to die the debt, the credit card company along with any others creditors would be repaid from the value of his assets, the creditors are preferred in this situation and anyone in the Will would have the left overs, if any.

I would worry that he has other debt you still do not know about, with one big debt there are always other's in my experience. If you own any joint assets for example a house, if he does not pay the debt the house could be reposessed or in bankcruptcy sold to pay his creditors, be aware be very aware!

[what..the?]

If you husband was to die and he did not have enough assets once sold to pay the debt, the debt would die with him, you would not be liable.

If your husband was to go bankrupt and he gave you a large loan or say transfered money to your account within the last 5 years the loan/transfer can be reversed and you might have to return the money, to pay his creditors.

[Craney]

I would just get him to go to :
moneylineservices.org

I had �12K on an Alliance & Leicester Credit card (who use MBNA to underwrite it) completely written off. I was going to use another company who charge �495 up front but didn't trust them and didn't want to end up more in debt!! But Moneyline only charge �35. I have now submitted an unsecured loan to them to write off but they say there's a 50% chance of success with that, compared to 75% chance of success with credit card agreements.

Hope that helps in a roundabout way!