Anyway to protect myself and the kids from DH's debts...
Posted: Wed Nov 02, 2011 2:13 pm
Would like to know if there're anyway to protect myself and the kids from DH's debts exposure?
It's a little complicated. DH's main debts exposure are due to being a joint borrower with his parents for their mortgage loans and car loan. My inlaws are servicing the loans on their own as they are still earning a fair bit with their small business. However my FIL is already in his mid 60s which explain why the bank required my hubby to be the joint borrower (instead of being guarantor). The property and car are all under my inlaws' names (hubby has no name in them). He has 2 younger siblings with their own family but staying under the same house with inlaws. They don't have their own place. We are staying in our own HDB with no other property.
I'm worried that in the event of unforeseen circumstances of one or two of the borrowers pass on, we have to shoulder the debts and getting the siblings to move out and sell the house would be difficult. Worse case scenario is if DH pass on, me and the kids got to shoulder the debts since the banks won't go after the siblings.
Also note that my inlaws did not draft up any wills and has no intention to. DH feels that it's a very sensitive topic to bring up. On top of that, my inlaws debts are way much more then their cash plus cash equivalents plus insurance. If anything bad happens to them, i assume everything, including the house will be spilt between the children except the loans as hubby is the only joint borrower.
I am really worried as my inlaws are already in their 60s, they feel that since they are the ones servicing the loans, we should not worried but me and DH knows the complications.
My question really is, how can me and my kids be protected from the implications? We are prepared that DH might goes bankrupt if my inlaws really pass on (*touchwood*) but what if the worse case scenario happens, my DH pass on? *touchwood*
Thank you in advance for any valuable inputs.
It's a little complicated. DH's main debts exposure are due to being a joint borrower with his parents for their mortgage loans and car loan. My inlaws are servicing the loans on their own as they are still earning a fair bit with their small business. However my FIL is already in his mid 60s which explain why the bank required my hubby to be the joint borrower (instead of being guarantor). The property and car are all under my inlaws' names (hubby has no name in them). He has 2 younger siblings with their own family but staying under the same house with inlaws. They don't have their own place. We are staying in our own HDB with no other property.
I'm worried that in the event of unforeseen circumstances of one or two of the borrowers pass on, we have to shoulder the debts and getting the siblings to move out and sell the house would be difficult. Worse case scenario is if DH pass on, me and the kids got to shoulder the debts since the banks won't go after the siblings.
Also note that my inlaws did not draft up any wills and has no intention to. DH feels that it's a very sensitive topic to bring up. On top of that, my inlaws debts are way much more then their cash plus cash equivalents plus insurance. If anything bad happens to them, i assume everything, including the house will be spilt between the children except the loans as hubby is the only joint borrower.
I am really worried as my inlaws are already in their 60s, they feel that since they are the ones servicing the loans, we should not worried but me and DH knows the complications.
My question really is, how can me and my kids be protected from the implications? We are prepared that DH might goes bankrupt if my inlaws really pass on (*touchwood*) but what if the worse case scenario happens, my DH pass on? *touchwood*
Thank you in advance for any valuable inputs.