Here are the key points you need to know on this topic:
By law, the loan must be repaid by the person in whose name it is issued, meaning that spouses are not obligated to pay off each other's loans. But if the wife is a co-borrower or guarantor, she bears the same responsibility to the bank as her husband.
If the husband does not pay the loan, the bank can go to court. To recover the debt, bailiffs can seize property, including jointly acquired property.
By court order, the borrower and the creditor may come to a settlement agreement - conclude a new agreement under which the debt must be repaid. This is possible in situations where the borrower has a source of active or passive income.
If the borrower has no source of income, he goes through the lebanon mobile database bankruptcy procedure. Bailiffs seize the property, after which the obligations to creditors are considered fulfilled.
When collecting, bailiffs first seize the borrower's personal property, acquired or inherited before the marriage. If the proceeds from the sale are not enough to cover the debt, the husband's share in the jointly acquired property may be seized. In this case, all property purchased during the marriage is considered jointly acquired, regardless of who it is registered to. By law, the wife's personal property cannot be seized to pay off the husband's debt.
For loans taken out before marriage, only the borrower is liable.
A wife can protect jointly acquired property if she can prove that her husband spent the money on personal needs, or that she did not give consent to the loan.
A prenuptial agreement entered into at least three years before the trial can also protect the wife's property acquired during the marriage.
When one of the spouses becomes bankrupt, the other joins him/her only if he/she acted as a co-borrower or guarantor.
In case of divorce, loans are divided in half if the money was spent on family needs.
The information in the article is current at the time of publication. Financial conditions may change. Please check the current data on the page of the product you are interested in. The Bank is not responsible for the use of outdated information.