Whether you are in a relationship, are married or cohabiting, once you encounter financial difficulty, it may well be worth considering the options open to you as a couple in dealing with problems of personal debt.
Let’s assume that each partner has a source of income and each has their own personal debts as well as joint debts (with the other). Let’s assume also that the relationship is such that the couple lives together (whether in a rented or owned property) and that living expenses are also shared according to the income levels of each partner. In such a scenario, one or other or both partners may encounter financial difficulty and one or both partners may be insolvent. Let’s call them A & B.
Available solutions include Bankruptcy, Individual Voluntary Arrangement, Debt Management Plan, Debt Consolidation, Debt Relief Order, Sale or Remortgage of Assets (releasing equity).
A’s plight might be much worse than B’s if for example A has a much lower income than B and A’s debts are much higher than B’s. A might be insolvent while B might be solvent. In the context of being in a relationship, it may be that the better off partner is willing to assist the worse off partner in resolving financial problems. It makes sense then that in seeking advice, all options are considered for both partners in the context of stand alone solutions or solutions based on the pooling or part pooling of resources, recognising the mutual financial dependency of the partners.
The important thing is to obtain professional insolvency advice.