VIC Will Partner Declaring Bankruptcy Affect Me?

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Kell73

Member
19 July 2017
2
0
1
I have recently purchased a house, and now have a rather large mortgage, which is all in my name. My partner recently lost his job, and because I earn too much isn't entitled to payments from Centerlink. He now has creditors chasing him as he is unable to make payments on his credit card and personal loan, and is exploring the option of declaring bankruptcy.

How will this affect me? Will they take my house? Will I be responsible for paying his outstanding debts?
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
2,452
514
2,894
Gold Coast, Queensland
lawtap.com
You will remain liable for any joint debts. Most unsecured debts solely in his name will be wiped. Secured debts will continue, but only to the extent they are secured. Any amount above the value of the security (called a 'shortfall') should be declared in the bankruptcy.

If your ability to pay the mortgage is reliant on his income, and the lender is aware of that, you'd best talk to them about the situation. You may want to look at their hardship policies to see if these can assist.

Further, have a read of this: What are the consequences of bankruptcy? | Australian Financial Security Authority and this: What happens to my debts when I’m bankrupt? | Australian Financial Security Authority
 
  • Like
Reactions: Tim W

Kell73

Member
19 July 2017
2
0
1
My partner has no financial interest in the house or mortgage, he has not contributed to any payments I am solely responsible.
we don't have any joint debts or accounts