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  • FIRST POST
    • brightonbelle
    • By brightonbelle 8th Jul 17, 12:17 PM
    • 42Posts
    • 10Thanks
    brightonbelle
    Sorry confused...
    • #1
    • 8th Jul 17, 12:17 PM
    Sorry confused... 8th Jul 17 at 12:17 PM
    Sorry there's more ramblings but just two questions, how come my husband was able to keep his business after becoming personally bankrupt and also if he is paying into an payment order why y are they still going to make myself and my children homeless that does r seem fair to me
Page 1
  • National Debtline
    • #2
    • 11th Jul 17, 12:49 PM
    • #2
    • 11th Jul 17, 12:49 PM
    Hi Brightonbelle,


    When someone is declared bankrupt they would not be able to continue as the director of a limited company whilst they are undischarged bankrupt. The director would need to stand down, but could be reappointed in another role within the business. The business itself doesn't have to necessarily close down; and if he was a sole trader, then there are no restrictions to prevent that continuing either.


    As far as the property is concerned, I am afraid that is a completely separate issue to an Income Payment Arrangement (IPA). The IPA is based on an assessment of his SOA and surplus money. The property is at asset and assets are at risk of being seized and sold as part of the bankruptcy as an additional point.

    If you are unable to negotiate a deal with the OR to 'buy back' your husbands interest in the house then I am afraid it is likely to be sold if there is equity. You should still receive your share of the equity and can use that to find alternative accommodation. I appreciate that may not be mortgaged, but it would prevent the issue of homelessness. Best of luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • brightonbelle
    • By brightonbelle 12th Jul 17, 5:07 PM
    • 42 Posts
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    brightonbelle
    • #3
    • 12th Jul 17, 5:07 PM
    • #3
    • 12th Jul 17, 5:07 PM
    But I can't even afford to rent anywhere, I've phoned today to ask about a house down the road, it's double the mortgage payment. I don't have any options, I can't move otherwise the children and I will be homeless! They will not rent to people with bad credit - thanks To my husband, nor to people on benefits..I've called four letting agents today.

    Just because of a situation we had no part in, we are innocent in all this and will have nowhere to live, surely that must account Defoe something?
    It's a desperate situation and I'm so so angry
    • TheGardener
    • By TheGardener 12th Jul 17, 6:41 PM
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    TheGardener
    • #4
    • 12th Jul 17, 6:41 PM
    • #4
    • 12th Jul 17, 6:41 PM
    You need professional help - get an appointment with the homelessness officer at the council and with the Citizens Advice Bureau. And much as this situation is distressing and unfair - you need to be pragmatic and start making plans for you and the children. With your share of the proceeds of the house sale you will be able to offer 6 months rent up front as a deposit and hopefully get yourself sorted. Is the OR clear that the house is to be sold?
    Do you work? You need to search the market for rentals you can afford and if that means leaving the area - thats what it means.
    Take advice from the local council and contact Shelter.org.uk.

    I know this is going to be hard and I understand how distressed and angry you must be but you have to focus of the future.
    • brightonbelle
    • By brightonbelle 13th Jul 17, 7:15 AM
    • 42 Posts
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    brightonbelle
    • #5
    • 13th Jul 17, 7:15 AM
    • #5
    • 13th Jul 17, 7:15 AM
    But why should his children suffer, they can not be homeless I work for the local authority so know how bad the situation is here , they go to school and I work locally too we can't move area. Cheap housing is in horrid areas and in it bringing my children up like that - he messed everything up not us, the only option I can see is a charging order until the children have left school...the OR isn't clear the house has to be sold no, if I refuse to sell
    What happens??
    • silvercar
    • By silvercar 13th Jul 17, 8:15 AM
    • 35,670 Posts
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    silvercar
    • #6
    • 13th Jul 17, 8:15 AM
    • #6
    • 13th Jul 17, 8:15 AM
    I am guessing you are in the process of splitting from your husband? If you could make a settlement with him for a clean break ie giving him no maintenance to repay to you in return for him giving up the equity in the property, would that help the situation?

    I can see from other posts, there could be as much as £100k equity, so a 50/50 split that would mean £50k is your husband's share, unless you have a divorce settlement giving you a greater share of the equity.

    Just thinking out loud really.
    Last edited by silvercar; 13-07-2017 at 8:23 AM.
    • brightonbelle
    • By brightonbelle 13th Jul 17, 10:52 AM
    • 42 Posts
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    brightonbelle
    • #7
    • 13th Jul 17, 10:52 AM
    • #7
    • 13th Jul 17, 10:52 AM
    The share would be about 75-85k and the trustee demands his share, why can't he wait until the children have left school. That's what I don't understand it's unfair we should suffer, why can't they take his business instead??
    • TheGardener
    • By TheGardener 13th Jul 17, 2:27 PM
    • 2,090 Posts
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    TheGardener
    • #8
    • 13th Jul 17, 2:27 PM
    • #8
    • 13th Jul 17, 2:27 PM
    I appreciate how unfair this is - but you can't refuse to sell - the OR will simply evict you and sell it anyway. They can't wait and you need to focus on the future - although having a bit of a meltdown is quite understandable
    If you work for an LA go find the best person in housing to speak to. The amount you will receive is a sizable deposit in may areas of the county - have you looked at what sort of mortgage you could afford? - if the area you are in is expensive - you will have to move, horrid or not. I know from experience that the housing I believed was 'horrid' and significantly different in standard to what I had had - turned out to be not so nearly as horrid as I thought and I have been very happy here. Not least because I haven't had any stress over the cost of living here (and have some great neighbours).
    It will take time to get over the anger of finding yourself in these circumstances - but it can't distract from you focusing on getting the best possible future sorted for you and the kids. Wailing 'its not fair' wont get you any constructive help.
    Focus and move on I'm not being unkind - I've been there myself and I know how hard it is.
    • brightonbelle
    • By brightonbelle 13th Jul 17, 6:59 PM
    • 42 Posts
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    brightonbelle
    • #9
    • 13th Jul 17, 6:59 PM
    • #9
    • 13th Jul 17, 6:59 PM
    It is beyond hard and I'm still really angry because he chose that option for himself, without discussion with me so how can they make me sell, it's morally wrong I feel like I'm having my home stolen from me. I can't leave the area, I work nearby and the children are at school here, it would disrupt them dreadfully. I want to know if they can place a charging order so I could sell in six years when my daughter has finished school, surely this is possible if I'm the innocent party...my children need to stay at the same schools and my daughter goes up to secondary in two years so I have to be in the right catchment for a good school so she can go with her friends the council won't be able to help - there is a shortage here, and people have to go into temporary accommodation because there aren't enough houses. That's not something I can consider can I, if I can rent locally it will cost a lot as I will have to claim benefits that can't be something they want, god I wish this anger would subside its horrid
    Last edited by brightonbelle; 13-07-2017 at 7:52 PM.
    • silvercar
    • By silvercar 13th Jul 17, 7:22 PM
    • 35,670 Posts
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    silvercar
    But because he chose that option for himself, without discussion with me then how can they make me sell.
    If push came to shove, they would first register the charge against the property then go to court to ask a judge to grant them a possession order. Following which they would appoint bailiffs to evict you.

    At some point you would go to the council and ask for help with housing having been made homeless through no fault of your own.
    • brightonbelle
    • By brightonbelle 13th Jul 17, 8:05 PM
    • 42 Posts
    • 10 Thanks
    brightonbelle
    That sounds scary evict, homeless surely they can't legally do that bloody hell its awful I dont owe anything, it's just immoral children can't live on the street that's so wrong! The only accommodation the council will provide is emergency in a bed and breakfast I can not do that to them, really scared now! What a f@ck up from a selfish man
    • cte1111
    • By cte1111 13th Jul 17, 8:22 PM
    • 7,121 Posts
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    cte1111
    I think you need to find somewhere to vent your justifiable anger at your husband, then come back and start afresh on practical plans for dealing with the situation.

    The reason you can't stay put is that you do not own all the house yourself personally. It sounds like when the house is sold, you will be entitled to a share of the equity. Hopefully that will either be useful as a deposit on a new house (or flat) or as rent for a while, until you are back on your feet.

    Therefore, once you are feeling more rational, you need to plan how to manage this difficult time, so that your children and yourself do not suffer more than you need to.

    Practical things you can do - research local rents (find the cheapest areas near to their schools, rather than your favourites), find out how much equity you will have when the house is sold, investigate whether a landlord will accept 12 months rent upfront (to get past the initial poor credit problem) - reassure your children (it is your job now to make sure they are not worried too much), look into benefits (not sure you will be able to claim housing benefit if you have a lump sum but you might well be entitled to tax credits, if you living separately from your husband.
    • silvercar
    • By silvercar 13th Jul 17, 8:39 PM
    • 35,670 Posts
    • 150,316 Thanks
    silvercar
    That sounds scary evict, homeless surely they can't legally do that bloody hell its awful I dont owe anything, it's just immoral children can't live on the street that's so wrong! The only accommodation the council will provide is emergency in a bed and breakfast I can not do that to them, really scared now! What a f@ck up from a selfish man
    Originally posted by brightonbelle
    I didn't want to panic you, more to tell you the process. it may be that the OR won't force a sale and will settle for a charging order; it may that a judge will tell the trustee in bankruptcy to wait a few years.

    If you do have to face up to moving then there is an argument (I'm not saying do this, I'm saying consider it) for not paying the mortgage. Anything you do pay off the mortgage will come off your share and your husband's. If you are making all the payments then your husband is getting the benefit in increased equity. Obviously this is the nuclear option and only to be considered if you absolutely definitely will be losing the home.

    Is there any chance you can get a divorce quickly and a financial settlement that gives you the equity in the property?
    • Geoff1963
    • By Geoff1963 13th Jul 17, 9:05 PM
    • 962 Posts
    • 601 Thanks
    Geoff1963
    Children sometimes cope better than we expect ; because they can treat "different" as an adventure, while the adults have to cope with the practicalities. If you can ( by some miracle ) appear happy about it around them, they will be less affected.

    For what it's worth, I think we all agree that your husband is a !!!!, a !!!!!!, and a !!!!!!!!.
    Next step is to find someone to take his place. Raising a family with two parents, is hard enough.
    • TheGardener
    • By TheGardener 13th Jul 17, 10:23 PM
    • 2,090 Posts
    • 1,995 Thanks
    TheGardener
    I wasn't suggesting you ask the council for housing (although it wont hurt to be on the waiting list) - I was suggesting you speak to a colleague in housing who can advise you about the options available to you. As previously mentioned - Shelter.org.uk can help with the legal side of things - whether a charging order is a possibility etc.

    You need to talk to the OR and find out for certain what their plans are for the house.
    No - its not fair and it is scary - but you need to focus and move forward.
    • brightonbelle
    • By brightonbelle 14th Jul 17, 7:53 AM
    • 42 Posts
    • 10 Thanks
    brightonbelle
    I know that, and I'm trying one day is better than the next. I've got a few questions, if we do sell I assume all the remaining equity is mine as his has had to go to the trustee? I assume too that I would be able to claim housing benefit if it's not my fault, but only if I don't have any equity? That I will be able to rent somewhere and pay monthly if my credit score has been affected by his reckless spending? I can't pay a years rent up front that would be nearly £14,000....no including all the associated fees....that's madness. I nearly bloody 50 and I'm going to be living like a student
    • silvercar
    • By silvercar 14th Jul 17, 9:08 AM
    • 35,670 Posts
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    silvercar
    if we do sell I assume all the remaining equity is mine as his has had to go to the trustee?
    Yes, yours is yours. You should be negotiating on how much equity percentage wise is yours. Also all the selling costs should come from his side.

    I assume too that I would be able to claim housing benefit if it's not my fault, but only if I don't have any equity?
    Hazy memory that there is some rule that proceeds of a house sale are exempted for a set time (6 months??) if you intend to buy another property. Aside from that rule having more than £16k of savings would prevent you getting housing benefit.

    That I will be able to rent somewhere and pay monthly if my credit score has been affected by his reckless spending?
    It isn't reckless spending but unpaid debts, CCJs, missing credit card payments, breaching overdrafts etc that will impact his score. This will impact you if you have joint finances.

    I can't pay a years rent up front that would be nearly £14,000....no including all the associated fees....that's madness.
    You could once the equity is in your account! Whether you want to..... You probably need to find a private landlord who will listen to your story.

    I nearly bloody 50 and I'm going to be living like a student
    Find out from the council what their waiting list is like for council housing. Do you have a car? Could you live slightly further out where prices are cheaper? There must be some areas of Brighton that are not so expensive.
    • debtisnotme
    • By debtisnotme 14th Jul 17, 11:37 AM
    • 103 Posts
    • 77 Thanks
    debtisnotme
    Its not an ideal situation, neither is it one of your making but you need to deal with it. If the worst comes to the worst and the house is sold you will need to consider that your children may have to move schools, its not the end of the world and with your support I am sure they will cope. Children move schools all the time and survive. You will have to make decisions about housing and schools and consider that if you cannot afford to live in the correct catchment area then difficult decisions will need to be made. If his business will be continuing presumably you will get Maintenance for the children which you can take into account as well.
    Debt on 25/5/17
    Mortgage £61,999 £59,335
    Secured loan approximately £20,000 £19,353
    Unsecured debt in DMP with Stepchange £38,887 £37,763
    • brightonbelle
    • By brightonbelle 18th Jul 17, 2:01 PM
    • 42 Posts
    • 10 Thanks
    brightonbelle
    I'm not moving out of the area, moving will be hard enough for the children, I need to protect them as much as possible as the responsible adult....their Dad decided to do this to them, clearing his own debts with no thought of them at all, so selfish. He was controlling and verbally sbusive this financial control and making decisions about his family without discussing anything with me is beyond belief. Would the trustee consider this....it's so bloody wrong. I will do all I can to save my children's home...better get a lottery ticket hey!!
    • TakeAwayKing
    • By TakeAwayKing 18th Jul 17, 2:15 PM
    • 94 Posts
    • 50 Thanks
    TakeAwayKing
    The trustee isn't able to sell the property for the first 12 months after bky, to give you time to get sorted as you and your dependents have rights etc. After the first year it is seen that the creditors' rights outweigh yours and so steps can be taken.

    Sorry that that isn't what you want to hear.
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