Advice Please

[scribe]

I'm asking for advice for a friend of mine who like many others is faceing bankruptcy.

He is a soletrader, the property he owes jointly with his wife and the mortgage is paid up . My friend took out a £20,000 loan last year he now has know income coming in and cannot cover the loan payments.
As a Sole trader would bankrupcy just affect him only or would it also affect his wife .Thanks for looking.

[Dragon Media Group]

It would not harm his wifes credit rating etc, but if the property is jointly owned it will be up for grabs.

[cycloneuk]

Was the loan secured? bankrupcy will not affect his wife but it should be a last resort. He needs to speak to the loan provider first since they can place an order on the house.

[scribe]

Was the loan secured? bankrupcy will not affect his wife but it should be a last resort. He needs to speak to the loan provider first since they can place an order on the house.

I ment to say, it's an unsecured loan.

[Dragon Media Group]

An unsecured loan is a different story. There is not really a way that an unsecured loan can enforce bankruptcy, although obviously defaulting will affect his credit rating.

If he is honest and open with the lender in question he will probably find that they are willing to adjust the terms of repayment.

[scribe]

I have just phoned my friend, just to give a bit of moral support . His lender is a bank
and when he took out the loan he also took out a ppi (unemployment ,sickness ).
He has been to the bank today and informed them he is out of work and he would be
claiming on the ppi, the bank has told him the unemployment part of the ppi is for people that are employed to be unemployed and does not cover self-employed, so basicly the ppi is useless or was it miss sold to him.