The responsibility of spouses for debts is a delicate issue. In this article, we cover it from different angles. We tell you whether a wife should pay her husband's loan if he allows late payments. We also consider the situation when one of the spouses becomes a defaulter and the case goes to court. And we will separately touch on the topic of a loan during a divorce.
Who is responsible for the loan under the law?
If the loan agreement is concluded with only one borrower, he is responsible for the obligations. That is, the wife is not obliged to pay off her husband's loan. But it is better to do this, if possible. Otherwise, you will have to face the consequences: the case will go to court, and joint property may be seized as part of the debt payment.
In the past, banks required borrowers to provide written lebanon mobile database consent from their spouse when issuing a loan. Today, this practice does not exist, but when issuing a loan to a husband, a bank employee will most likely contact the wife. If she expresses her disagreement, the loan may be denied. This is due to the fact that in the event of non-payment, it will be more difficult to recover the debt through the court. If the borrower has a good credit history, the loan may be issued even if the spouse disagrees.
The obligation to make payments instead of a spouse exists only in two situations:
The wife is a co-borrower, i.e. bears the same responsibility to the bank. If there is a delay in the payment of a joint loan, this affects the credit history of both - the title borrower and the co-borrower. As a rule, in mortgage lending, spouses act as co-borrowers.
The spouse acts as a guarantor. A surety is a type of security in which the bank receives additional guarantees and in return offers more favorable terms. If the borrower does not make payments, the bank sends a demand to the guarantor. He bears full responsibility from the moment the official demand of the bank is received.