Just one thing...

I posted a month or so ago but my situation, husband declared bankrupt 2015 now letter from trustee about selling out home or me buying the BI. I've had advice from as many places as I can find and it seems that even though this is financial abuse - I wasn't told the bankruptcy until days before the petition from HRMC and was lied throughout - there isn't anything I can do other than try to raise £83k!!

One question I have though is if this equity doesn't actually cover his debts what's the point in making two children homeless, it makes no sense. The rent here is one thousand pounds a month more than my mortgage, my equity will be gone in a few years, and I will have to rely on benefits - we are now separated - will my ex have to pay towards the outstanding debts, this will seriously effect his ability to pay maintenance is that considered?
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  • StopIt
    StopIt Posts: 1,470 Forumite
    The reasoning is simple: paying some of the debts via forced equity release or sale is better than no payment at all.


    As for fairness? I'm afraid many things in life are indeed unfair but you have to answer the following:


    Can you afford the house on a single income? If no, then it doesn't matter if you've paid for x amount of years, as horrible as that may sound. If there's an outstanding amount on the mortgage, including buying out the BI from the ex, it needs to be paid one way or another, be it via selling up or paid via continuation of the monthly repayments via re-mortgaging the extra amount. If you're divorcing, then any debts or assets are split. If the person is bankrupt then any debts accrued pre that date are gone, anything after in joint names will leave you both liable. Any debt in your name only and vice versa are not legally liable by the other party.


    And maintenance payments are separate and based on the ability to pay.

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  • Mouse007
    Mouse007 Posts: 1,062
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    edited 9 August 2017 at 8:22AM

    there isn't anything I can do other than try to raise £83k!!

    Remember half the equity is yours, you only have to raise the other half. Negotiate away a few £,000 for selling costs and you should be able reduce this to under £40,000.

    http://forums.moneysavingexpert.com/showthread.php?p=72798261#post72798261

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  • threeofus
    threeofus Posts: 106 Forumite
    That is half the equity - surely the selling costs come out of his share...why should I pay when I am forced to do it? Not sure what the deal is with that - also if it doesn't cover his debt then what happens to the rest of the money he owed? Will this be an income payment order? Or will he have to sell his business too? This will impact his ability to pay maintenance.
  • StopIt
    StopIt Posts: 1,470 Forumite
    That is half the equity - surely the selling costs come out of his share...why should I pay when I am forced to do it? Not sure what the deal is with that - also if it doesn't cover his debt then what happens to the rest of the money he owed? Will this be an income payment order? Or will he have to sell his business too? This will impact his ability to pay maintenance.


    You say your ex was declared Bankrupt in 2015?


    Any IPA/IPO or BRU/BRO would have been issued once the OR looked at the case. If they were not subject to one then, it will not be applied if they've been discharged however realisation of assets like equity can take longer than the rest of the process.


    Same with the business. if it's a LTD company, any personal debts will not impact the business aside from any debts secured against it.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Mouse007
    Mouse007 Posts: 1,062
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    That is half the equity - surely the selling costs come out of his share...why should I pay when I am forced to do it? Not sure what the deal is with that - also if it doesn't cover his debt then what happens to the rest of the money he owed? Will this be an income payment order? Or will he have to sell his business too? This will impact his ability to pay maintenance.

    You're over thinking this.

    Your ex had an asset: 50% share of the equity. It's worth about £41,500. It matters not how much he owes his creditors; they can’t have it all but they can have something and something is better than nothing. There is nothing you can do to stop this, his equity will be used one way or another.

    You do however have the option of buying your ex’s share off the trustee (it belongs to them now). That is you only have to raise half the total equity, not the full £83,000 you keep quoting.

    Forget about the creditors not being paid off in full, that’s not your problem.

    It will cost the trustee to sell the house (agent and solicitor fees). You can therefore negotiate to pay less than 50% because these costs will be saved if you pay. This is why I said you should be able to get it down to below £40,000. That is you pay less than 50% and keep the house.

    Can you raise £40,000?

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  • lovinituk
    lovinituk Posts: 5,711
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    Mouse007 wrote: »
    You're over thinking this.

    Your ex had an asset: 50% share of the equity. It's worth about £41,500. It matters not how much he owes his creditors; they can’t have it all but they can have something and something is better than nothing. There is nothing you can do to stop this, his equity will be used one way or another.

    You do however have the option of buying your ex’s share off the trustee (it belongs to them now). That is you only have to raise half the total equity, not the full £83,000 you keep quoting.

    Forget about the creditors not being paid off in full, that’s not your problem.

    It will cost the trustee to sell the house (agent and solicitor fees). You can therefore negotiate to pay less than 50% because these costs will be saved if you pay. This is why I said you should be able to get it down to below £40,000. That is you pay less than 50% and keep the house.

    Can you raise £40,000?
    They have already said that the £83k is HALF the equity. So the full equity must be around £166k.
  • Mouse007
    Mouse007 Posts: 1,062
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    edited 9 August 2017 at 10:58AM
    lovinituk wrote: »
    They have already said that the £83k is HALF the equity. So the full equity must be around £166k.

    I refer you to the link in my first post on this thread - although I'll admit the OP hasn't been totally clear ...

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  • lovinituk
    lovinituk Posts: 5,711
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    Mouse007 wrote: »
    I refer you to the link in my first post on this thread - although I'll admit the OP hasn't been totally clear ...
    That other thread confuses things with contradicting numbers!
  • threeofus
    threeofus Posts: 106 Forumite
    Sorry to make it clear the equity is about 166 so 83 is left for me, but I just wanted to know after the house goes does he still have to pay towards the outstanding debt, and do the fees come out of my share?

    He stupidly thinks that it will all be ok! I have my doubts as
    As far Ias I can see I will be forced to sell and have to rent, which will be far more expensive which I won't be able to afford. That makes no sene as surely child welfare is of paramount importance so how will we afford it? And if we stay separated how will he pay maintenance? Is that consider
  • StopIt
    StopIt Posts: 1,470 Forumite
    Sorry to make it clear the equity is about 166 so 83 is left for me, but I just wanted to know after the house goes does he still have to pay towards the outstanding debt, and do the fees come out of my share?

    He stupidly thinks that it will all be ok! I have my doubts as
    As far Ias I can see I will be forced to sell and have to rent, which will be far more expensive which I won't be able to afford. That makes no sene as surely child welfare is of paramount importance so how will we afford it? And if we stay separated how will he pay maintenance? Is that consider


    Maintenance is not considered in any bankruptcy proceedings, that's a family court matter and is something you'd need to organise upon a divorce settlement.


    Also, if you sell with £83k of equity, you'd have a large lump sum to rent while you re-calibrate your life post marriage. It's tough but many people don't even have equity to fall back on and end up on social housing after a breakup, let alone bankruptcy affecting things.


    You need to seek legal advice, stop saying about things being unfair, rather than actually finding out your position from a legal standpoint. You really do need to deal with the situation you're in, rather than saying "Can they do this or that". You can only deal with what actually happens after all.


    When it comes to child welfare, the council will have an obligation to find housing to prevent homelessness, they do not have an obligation to keep your living standards at a level you enjoyed before. It is harsh, but there's not really government funding to pay peoples mortgages if they can't afford it. Again, if you sell you'll have a capital buffer to keep you going at least for a few years.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
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