Do I need to repay my partner’s company debts?
If your partner’s business faces debt issues, you might be responsible for its debts if the business account was opened jointly and both of you signed the loan agreement. However, if the account wasn’t opened jointly, you aren’t liable for your partner’s business debts.
Does the wife Or husband hold the liability of their partner’s company debts in the UK?
I’m worried that my wife’s business problems could lead creditors to seize our home or property. Can they make me responsible for her debts?
If your spouse’s business is failing, it’s understandable to worry about how the debts might impact your household. Typically, you won’t be responsible for your spouse’s business debts if you don’t open joint company accounts.
Legally, a creditor cannot take you to court or seize your assets that you solely own. However, if you and your wife jointly opened the business and the debts were incurred by her, a lender might pursue both of you if both your names are on the loan agreement.
“Since my husband and I share multiple joint accounts, our names appear on each other’s credit reports. He has some negative business credit ratings. Will this impact my chances of getting financing approval in the future?”
It’s possible that a lender might reject your financing application because of your husband’s poor credit history appearing on your credit report. However, closing any joint accounts with your husband would remove his name from your credit report, giving you an independent report for creditors to review.
In simple terms, your husband’s poor credit ratings won’t make you accountable for his debts, and they won’t cause lasting harm to your credit score.
The best step for you now is to close any joint accounts with your spouse and seek advice from a licensed insolvency practitioner.
If you’re worried about being held responsible for your spouse’s debts or have queries about insolvency or recovery, please don’t hesitate to reach out to us at 0121 769 1915 or email us for a complimentary consultation.
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I am an insolvency professional with a distinguished career specialising in commercial insolvency, adeptly navigating Creditors Voluntary Liquidation, Company Voluntary Arrangements, and Company Administrations. With a comprehensive understanding of insolvency laws and an unwavering commitment to ethical practices.