Because of debts caused by my husband’s business partner who then fled the country, several banks are hunting us down. They said that if my husband won’t pay up we could be forced to sell our home, which is in both our names, to cover the debt. This frightened me. Can they do this, and could we and our children be homeless ?By: דיאנה שאלתיאל•Published on: 10 May, 2022
Yes, if the banks take legal action to recover the debt and the court gives a judgment ordering them to pay up, and they do not , then creditors are entitled to apply to the Chief Bailiff at the Execution Office for a freezing order on the home to guarantee the debt. If the couple are still unable to pay 30 days after the order is granted , then the process of selling the property to cover the debt can start. The law contains provisions to protect debtors families from becoming homeless; the Chief Bailiff will not act to evict the family from the home unless he is satisfied that they will have “reasonable accommodation” or an “alternative arrangement awaiting them. In practice, this means that they may be forced to sell to cover the debt, and have to buy a smaller property with what money is left over, or even rent one.