Ex partner to declare himself bankrupt...What will happen to my friend's + kids home.

garageman

I realise theres a similar thread to this....."Ex-hubby going bankrupt - wot will happen to the house? but the circumstances are different.

My friends ex partner...hes been out of the home for 19 months,,,,has told her he is going to declare himself bankrupt.

The house is in their joint names and at the moment she is on benefits and the DSS is paying the interest on the mortgage. The house has been up for sale for 9 months, but theres been no interest in it.

The house was valued at £130k, and the outstanding mortgage is £52k...
through solicitors they had agreed a 60/40 split in her favour.

They have four children(the youngest being 4) all living with her. She is worried that she will be forced to sell at a greatly reduced price, thus preventing her from getting another property and him putting the children and her on the streets.

There is no talking with him, hes on drugs and always angry, and still threatens her with violence.

She has no idea what or how much his debt is, but at the moment he is employed, believed to be earning £500 a week of which he pays nothing towards his childrens up keep.

She is speaking to her solicitor asap, but any advance info would be appreciated.....all questions will be answered

blind-as-a-bat_2

With that amount of equity her exs BI will be something the OR will want eventually but nothing will happen over night, it could be 12 months to 3 years before they even atempt to force a sale to realise the asset.

vanessa123

I'm sorry I can not offer any advice, as it is such a specialised area but i wanted to post something to cheer you up.

on the bright side......if you are on benefits the child support agency must have done an interim maintenance assessment oh him and i would imagine he has ignored this and the debt is quite a large amount after 19 months, i'm sure the CSA are at the top of the list of creditors in a bankruptcy order so if the worst comes to the worst and they make you sell any of his profit will be given to the CSA to cover his debt and then passed on to you, so you may have a little nest egg in the making there!!!!

keep your chin up and remember that worrying about what will happen will not change the outcome, that will happen anyway, so chose not to worry.
xxxxxx
i know that's easy to say as i had a lot of problems with my ex husband, but when i look back, everything that did happen would still have happened if i hadn't worried about it, so worrying was a bit of a pointless exercise, oh but it is a great calorie burner........

garageman

Thanks for the two answers, I have passed the info onto her, and it HAS cheered her up a bit...more on how long it would take for him to seek the selling of the house at a reduced price would be appreciated.. or other consequences of his actions.....

tigerfeet2006

vanessa123 wrote: »

I'm sorry I can not offer any advice, as it is such a specialised area but i wanted to post something to cheer you up.

on the bright side......if you are on benefits the child support agency must have done an interim maintenance assessment oh him and i would imagine he has ignored this and the debt is quite a large amount after 19 months, i'm sure the CSA are at the top of the list of creditors in a bankruptcy order so if the worst comes to the worst and they make you sell any of his profit will be given to the CSA to cover his debt and then passed on to you, so you may have a little nest egg in the making there!!!!

keep your chin up and remember that worrying about what will happen will not change the outcome, that will happen anyway, so chose not to worry.
xxxxxx
i know that's easy to say as i had a lot of problems with my ex husband, but when i look back, everything that did happen would still have happened if i hadn't worried about it, so worrying was a bit of a pointless exercise, oh but it is a great calorie burner........

Sorry to disapoint you but your friend will not get a nest egg. If the Ex gets any money then the OR will be paid first and then the rest is divided equally among all his creditors so the chances of anything any time soon is remote.

If he goes BR he signs a legal document and has to tell the truth about his income. If she suspects that he hasn't revealled all then a quick phone call or letter to the OR's office to say that she thinks he is beeing fraudulent will be in order.

Also when he goes BR she should contact the OR's office and declare an interest as a creditor if she is owed money for the children. Though they might only deal with the CSA but at least it makes sure the OR is aware of the debt.

Richard_S

Hi Garageman,

Your friend is vulnerable if her ex declares bankruptcy, because the O.R will look to realise any equity he has in the former marital home. The only real plus points are that nothing will happen quickly, and with house prices falling at their current rate your friend has probably over estimated the equity in the house.

The guy sounds like a real loser; do you think he's serious about declaring bankruptcy? It's not exactly a "walk in the park," he'll have to raise the money for the fees, and then complete all the relevant paperwork; could it be an empty threat?

The real problem is that this could be hanging over her for a long time, and she'd always be wondering about what her ex would do. Do you think she'd be prepared to put the house on the market, and if it sold pay her ex off? If it doesn't sell then at least she'd be able to argue that the house was worth considerably less than any estate agents valuation.

The O.R only has 3 years from the date of a Bankruptcy Order to dispose of the property, and they are very sensitive to a non-bankrupt spouse where children are involved.

I think she has to accept that there's not going to be a quick resolution to this problem, and be prepared to accept a period of unncertainty.

Is the guy still insured? If his habits are that bad he may well do his family a favour and "expire" before he causes them any more hardship; just a thought.

Richard

garageman

tigerfeet2006 wrote: »

Sorry to disapoint you but your friend will not get a nest egg. If the Ex gets any money then the OR will be paid first and then the rest is divided equally among all his creditors so the chances of anything any time soon is remote.

If he goes BR he signs a legal document and has to tell the truth about his income. If she suspects that he hasn't revealled all then a quick phone call or letter to the OR's office to say that she thinks he is beeing fraudulent will be in order.

Also when he goes BR she should contact the OR's office and declare an interest as a creditor if she is owed money for the children. Though they might only deal with the CSA but at least it makes sure the OR is aware of the debt.

All taken in and passed on. She spoke to her solicitor today(usually takes weeks), and this has eased her worries......He has not contributed at all since they split.....but i believe she was talked out of claiming CS as it affected something else....The "nest egg" is not expected, but the chance maybe to buy him out is hoped for.....

garageman

Richard_S wrote: »

Hi Garageman,

Your friend is vulnerable if her ex declares bankruptcy, because the O.R will look to realise any equity he has in the former marital home. The only real plus points are that nothing will happen quickly, and with house prices falling at their current rate your friend has probably over estimated the equity in the house.

The guy sounds like a real loser; do you think he's serious about declaring bankruptcy? It's not exactly a "walk in the park," he'll have to raise the money for the fees, and then complete all the relevant paperwork; could it be an empty threat?

The real problem is that this could be hanging over her for a long time, and she'd always be wondering about what her ex would do. Do you think she'd be prepared to put the house on the market, and if it sold pay her ex off? If it doesn't sell then at least she'd be able to argue that the house was worth considerably less than any estate agents valuation.

The O.R only has 3 years from the date of a Bankruptcy Order to dispose of the property, and they are very sensitive to a non-bankrupt spouse where children are involved.

I think she has to accept that there's not going to be a quick resolution to this problem, and be prepared to accept a period of unncertainty.

Is the guy still insured? If his habits are that bad he may well do his family a favour and "expire" before he causes them any more hardship; just a thought.

Richard

I think he definately is(and to a certain amount..she was) thinking that this would be all done and dusted very quickly....She is certainly relieved that it could take a long time.

Dont get me on about how much of a loser he is.....Its a new threat, the house has been up for sale with the DSS paying the mortgage interest... which isnt in HIS best interests....He needs some cash, and is now threatening bankruptcy, and he now thiinks he has control again...

The house has been up for sale for 9 months with no interest, this is why we think he has taken this recent decision on bankruptcy....There maybe some very undesirable people after him(for money)....which may answer the last part of your post.....hopefully.

She really wants to sell the house(but not at a knock down price), as she needs to leave the area and start afresh....

She has had a period of uncertainty for the last 19 months...the degree of uncertainty always deemed by HIS moods....