Hi ashley86

I cant see any reason why this should have any effect on your fiance.

Is the overdraft in joint names or just in your own.

Mark

hi
thanks for your response
the overdraft is in both our names. i am worried that the bank will chase him or take legal action to recover the money if i do this especially when he's thinking of starting his own business.

Hi Ashley

If you proceed with the Trust Deed, then your fiance will be responsible for the full overdraft debt (not half).

It's not as big a problem as you think, however they will look for him to come to an arrangement to pay this and my advise would be to advise them of your Trust Deed and for your fiance to confirm an agreement to repay. if he continues on this line, then there's no default.

I'm sure it will be fine.

Mark

Welcome to the forum ashley86.

I just wanted to add something to the comments Mark has already made.

There can be a lot of confusion about credit records when it comes to a couple (where one of the partners enters a trust deed or an alternative debt solution).

A credit record is an individual matter; one persons score will not affect the others.

However where there is a joint financial arrangement (like a joint account, another example might be a joint mortgage) there may be a "link" apparent on each of your credit records to the other persons.

This does mean that a lender who looks into a loan application for the partner that isn't in a debt solution may be able to see a link to someone who hasn't been able to maintain their credit payments. Whether a bank looks for this information and whether they use the information for any purpose is really a matter for them.

If your fiance will rely on bank lending to get the business up and running it would be wise to be conscious of this. It may well not be an issue though and I hope that it isn't.

The main point of course is that you entering a trust deed places no restriction whatsoever on your fiance starting up a business if that is what he wishes to do. The first priority will probably be for him to come to an agreement with the bank about how the overdraft will be dealt with by him if you go ahead and sign a trust deed. That should mean that his own credit record is in no way affected.

Hi Ashley86 and welcome to the forum

I agree with everything Mark & TDA have said, but would just like to add that if it is a problem, you can write to the credit agencies and have your credit file disassociated from his - just in case!

thank you all for your advise. i am going to contact the bank and arrange a meeting with them and see what they say.

thanks again

Ash

That is good Ashley86

Honesty is the best policy. I am sure it can be sorted out, and you can enter a Trust Deed, whilst your fiance can still set up his business.

Hi Shona

Can you advise how to go about having our file disassociated? we also have a mortgage together so would this be affteced?

Hi ashley86.

I'm not sure that you can disassociate your credit records if you have a joint current account and/or a joint mortgage.

You can probably read more on the subject at the websites of the three main credit reference agencies which are Equifax, Experian and Callcredit. I'm afraid that our knowledge on credit records and credit ratings cannot be described as being "expert".

Hi Ashley86

As TDA says we are not experts in this field, and your local CAN or Authority is more likely to be able to give yout the neccessary leaflet. There defenitely is a leaflet as i saw it just the other week. I will try and get hold of another one to let you know. Not sure how the joint mortgage works, but will try and find out for you.

On the face of it this might sound a bit underhanded, but I managed to get my husband removed from our joint account before I signed the TD. Thus far they haven't come after him for the overdraft.