Joint debt and Judgement Mortgage

[Muffintop]

My brother and another family member have a business debt from 2007. Their business closed and AIB were owed approx 80k. A judgement was placed on my brothers family home and as his business partner had no assets at the time or home in his name he wasnt pursued. My question is this : If in the event that my brother was forced to sell his home does the other family member get away scott free? It was a joint business and all correspondance in the past was in both names. Would he be liable only for his share of the debt? Communication isnt great between the two men due to the stress of the situation over the years. Advice needed!!

 

[Jim Stafford]

If your brother sold his family home, and if his share of the equity was at least €80,000 (share of equity calculated on the basis that the primary mortgage, if any, is deducted from the selling price) then he would have to pay over €80,000 to the bank.

If he paid over the full €80,000 he could then sue his ex-partner for 50% of the debt.

Your brother should bear in mind that the debt is increasing at 8% per annum.

I am unable, in a public forum such as this, to comment on strategies of individual banks. However, I can generally say that it is practically impossible to enforce a judgment mortgage on a family home where it is co-owned with a spouse.

I would suggest that this may the time to try and do a deal with the bank. Once AIB "floats" back onto the stock exchange its existing policies could toughen etc.

Jim Stafford

 

[44brendan]

The alternative is to do nothing and in 12 years from registration the debt and JM will be statute barred!!

 

[Bronte]

The alternative is to do nothing and in 12 years from registration the debt and JM will be statute barred!!

That's certainly a strategy, but what if banks in 11 years 9 months and 29 days decide to go after it?

 

[Ravima]

It only serves to prove that banks will only go after them that have and not them who have not.

From the banks (taxpayers??????) perspective, why should they waste money trying to recover from someone who has nothing, when they have an easy target as well?

 

[Lone Star]

Nonsense Ravima: The banks go after anyone. They know there is not a cent to be gained from some people: however success in registering a judgement means they can 1. claim on their insurance policies and 2. Benefit in tax terms as a result of not getting the money.