Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • brightonbelle
    • By brightonbelle 9th Aug 17, 8:53 AM
    • 77Posts
    • 14Thanks
    brightonbelle
    Just one thing...
    • #1
    • 9th Aug 17, 8:53 AM
    Just one thing... 9th Aug 17 at 8:53 AM
    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?
Page 2
    • brightonbelle
    • By brightonbelle 12th Aug 17, 12:37 PM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    I don't feel sad for him, sad for the circumstances he has put his family in
    • Steven_from_scotland
    • By Steven_from_scotland 13th Aug 17, 12:51 AM
    • 43 Posts
    • 16 Thanks
    Steven_from_scotland
    If you are currently paying the whole mortgage yourself, are you not able to remortgage his 83k share to buy out his interest?
    • brightonbelle
    • By brightonbelle 13th Aug 17, 2:41 PM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    Don't think I earn enough that's the problem, he is also in arrears with the mortgage - another lie. It's worth an ask though isn't it xx
    • silvercar
    • By silvercar 13th Aug 17, 4:22 PM
    • 36,053 Posts
    • 152,274 Thanks
    silvercar
    Don't think I earn enough that's the problem, he is also in arrears with the mortgage - another lie. It's worth an ask though isn't it xx
    Originally posted by brightonbelle
    Problem may be that they won't take maintenance payments into account and your credit rating maybe impacted by his bankruptcy.
    • brightonbelle
    • By brightonbelle 15th Aug 17, 10:45 AM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    Yep credit score is affected as he has had arrears with the mortgage which is in both of our names, and he isn't trying to rebuild it is still late paying bills and behind on payments I have no idea how he can be in such a mess. Appointment with lawyer arranged to try and sort something out..onwards I go, what a failure
    • StopIt
    • By StopIt 15th Aug 17, 11:06 AM
    • 1,392 Posts
    • 1,184 Thanks
    StopIt
    Yep credit score is affected as he has had arrears with the mortgage which is in both of our names, and he isn't trying to rebuild it is still late paying bills and behind on payments I have no idea how he can be in such a mess. Appointment with lawyer arranged to try and sort something out..onwards I go, what a failure
    Originally posted by brightonbelle

    Well, if the mortgage is in arrears, the house is gone anyway, they (As your mortgage provider will be one of the creditors in the bankruptcy) just have waited for equity to build before forcing sale.


    The problem is that you're putting questions now, that should have been answered in 2015, when the BR was commenced. of course that's not your fault if you were kept in the dark.


    Have you actually agreed maintenance payments? An IPA will not have taken it in account in 2015 if the BR was considered as a married person rather than a single person with maintenance requirements. As the IPA will be up by next year, he will be free to pay you whatever maintenance is agreed anyway. However any changes like maintenance payments will mean a variation to the IPA. Again to you though it doesn't matter as once the IPA is finished, he no longer has to pay a penny to pre BR debt. The equity in the house is of course separate and once realised, his share will go to the OR to pay the creditors.


    * This is assuming he even has an IPA to pay. Does he? If not, does he even have money to pay maintenance? If he's still behind on the bills, this implies there's not exactly the money to pay you?


    However, the point of bankruptcy is that you're unable to pay your debts off in full, so any shortfall of pre BR debts is wiped out. Anything after BR is another matter but again, don't worry about him, get your legal advice and go from there.


    Good luck.
    Last edited by StopIt; 15-08-2017 at 11:09 AM.
    • brightonbelle
    • By brightonbelle 15th Aug 17, 1:45 PM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    I wasn't told any of it, nothing. Why could his compbabt not gone into
    Liquidation allbeit he was a sole trader when all the debts were accrued he was still trading under the same name?

    Nothing was explained to me, it was an abusive and controlling relationship which has lead me to loosing everything, it's hard, but i will get through it I'm sure. Just angry he will be debt free next year and the children will have had their world torn apart. How can it be right. Oh well, the law is a strange thing!
    • StopIt
    • By StopIt 15th Aug 17, 2:59 PM
    • 1,392 Posts
    • 1,184 Thanks
    StopIt
    I wasn't told any of it, nothing. Why could his compbabt not gone into
    Liquidation allbeit he was a sole trader when all the debts were accrued he was still trading under the same name?

    Nothing was explained to me, it was an abusive and controlling relationship which has lead me to loosing everything, it's hard, but i will get through it I'm sure. Just angry he will be debt free next year and the children will have had their world torn apart. How can it be right. Oh well, the law is a strange thing!
    Originally posted by brightonbelle

    The business debtline can explain better than me, but if he was a sole trader, then there's little that can stop a sole trader from continuing their trade post bankruptcy.


    After all, if you remove someone's livelihood, then the chances of recovering any money for creditors goes from low, to none. If the business was not asset rich, it is likely that they couldn't really do anything anyway.


    The problem is, legally speaking, your partners bankruptcy is his business, aside from anything with joint responsibility like the house. Alas, he doesn't need to tell you of any IPA/IPO/BRU/BRO, nor tell you when they're discharged (Although you can look that up!) etc.


    It's why getting independent legal advice is crucial, to unravel just what situation you're being left in. Once you know exactly where you stand, you can deal with it. However unfair it may sound though, I'd stop asking the whys/wherefores of the BC process. You're only going to upset yourself asking why he is "getting away with it" so to speak. While bankruptcy isn't the spectre it is seen to be, he's going to be a persona non grata at any lender for 6 years, and if he carries on not paying his bills, may end up back in front of an IP for another insolvency before too long.
    • brightonbelle
    • By brightonbelle 5th Sep 17, 2:07 PM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    he is getting away with it, he will get out of paying his debts and I will have to bail him out, it's morally wrong he will be debt free then by March...although he isn't paying his income payment order as he agreed in court...it's unbeliveable
    • TakeAwayKing
    • By TakeAwayKing 5th Sep 17, 2:37 PM
    • 105 Posts
    • 51 Thanks
    TakeAwayKing
    How do you know he won't be paying an income payment order for 3 years

    How will you end up bailing him out. If you are purchasing his interest in the home from the trustee - that is you buying equity in the property, not bailing him out.
    • brightonbelle
    • By brightonbelle 6th Sep 17, 9:42 AM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    Because the three years is up in March, so it will stop then won't it? If he wasn't in this position and we were splitting up chances are that I would be able to stay at home until the children were 18, but now I have the additional stress of having to raise a huge amount of money - I'm not giving up and will try everything to keep my home, just makes me so angry of course there is more to it than financial, but boy the system is morally bankrupt for sure!
    • TakeAwayKing
    • By TakeAwayKing 7th Sep 17, 1:49 PM
    • 105 Posts
    • 51 Thanks
    TakeAwayKing
    Apologies I missed that bit.
    I thought you said you couldn't afford the property on your own.
    • brightonbelle
    • By brightonbelle 12th Sep 17, 9:44 AM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    I have done an affordability test with the mortgage company who have said that I can keep it on my own as it is, I just have to work out if I can raise the equity now by remortgaging I have already increased my hours to full time at work and they will take into account the tax credits so am keeping everything crossed we don't loose our home, his children's home, all because of his reckless selfish behaviour...tell you something I really am going to fight for it, why should we suffer anymore than we have...I am full briefed have received legal advice, what I don't understand is how bankruptcy is perceived as a clean slate yet in reality it's far from it unless you have nothing in the first place, he will loose everything I will possibly loose my home, wiping the slate clean I don't bloody think so..it's a living nightmare
    • StopIt
    • By StopIt 12th Sep 17, 10:02 AM
    • 1,392 Posts
    • 1,184 Thanks
    StopIt
    he is getting away with it, he will get out of paying his debts and I will have to bail him out, it's morally wrong he will be debt free then by March...although he isn't paying his income payment order as he agreed in court...it's unbeliveable
    Originally posted by brightonbelle

    If he isn't paying his IPA/IPO, he will not be debt free in march, he'll be screwed. There's consequences to not following bankruptcy procedure you know.


    Even if he did follow it, post discharge he will be a financial dead duck for 6 years as most lenders, some utilities and most mobile operators will instantly reject a bankrupt. Even after the 6 years is up, anywhere that asks "Have you ever been bankrupt" will likely bite him in the proverbial.


    I'll say this regarding "Wiping the slate clean". That includes assets. It means you start again from a point of 0. That's the point of bankruptcy. Anything you owe is gone, but any assets you own is also gone. After all, if someone's assets > liabilities, then you are not bankrupt.
    • brightonbelle
    • By brightonbelle 12th Sep 17, 10:36 AM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    but that includes my assets too, if I can not raise the remortgage then I will be without a home, am speaking to the mortgage people at lunchtime hoping they can give me an answer sooner rather than later given the circumstances....fingers crossed! just can't wait to get it sorted out for my peace of mind.
    • TakeAwayKing
    • By TakeAwayKing 12th Sep 17, 10:52 AM
    • 105 Posts
    • 51 Thanks
    TakeAwayKing
    Sometimes that's what people need though.

    People overstretch themselves. They get finance or a mortgage on cars and houses that in reality, they cannot afford and then they are stuck with it and struggling.

    Sometimes people need to be stripped back to the beginning, learn to budget, and buy a car and a house that you can pay for and still afford to live, even if it isn't the make you want or in the area you want to be in!
    • StopIt
    • By StopIt 12th Sep 17, 11:15 AM
    • 1,392 Posts
    • 1,184 Thanks
    StopIt
    but that includes my assets too, if I can not raise the remortgage then I will be without a home, am speaking to the mortgage people at lunchtime hoping they can give me an answer sooner rather than later given the circumstances....fingers crossed! just can't wait to get it sorted out for my peace of mind.
    Originally posted by brightonbelle

    I know, and it sucks. The fact is, that his insolvency will directly affect you until you're financially independent, which means buying his half of the house out. If you can't, I'm afraid the domino effect of insolvency will sweep you under too. It isn't fair, but I've seen enough injustice in my life to know that fairness is not something that really matters when it comes to many things.


    I hope you can get something sorted. But remember that through all of this, there are more important things than even what roof is over your head, so long as you have one.
    • brightonbelle
    • By brightonbelle 12th Sep 17, 11:27 AM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    it's not fair no, and it is unjust, the good thing is that the anger is making me fight so bloody hard...I'm not willing to loose out because of him..sadly as I have said before if I can not remortgage there isn't a house/flat withing five miles of where we live now within budget, I would have to leave my job, the children leave there schools and that's something that I could not do, I'd have no income for a start!
    • TakeAwayKing
    • By TakeAwayKing 12th Sep 17, 1:35 PM
    • 105 Posts
    • 51 Thanks
    TakeAwayKing
    Sorry, quick question - did HMRC petition for his Bky ?
    • brightonbelle
    • By brightonbelle 12th Sep 17, 1:45 PM
    • 77 Posts
    • 14 Thanks
    brightonbelle
    they did yes, I didn't know until two days before they actually petitioned him, if that's the right word? xx
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,977Posts Today

7,748Users online

Martin's Twitter