Can't go bankrupt...

Scanny

My sister has recently seperated from her husband and has to take on half of their shared debt, plus due to the change in circumstances and being on a low wage she has got herself into further debt with utilities, broadband etc. In total she owes in the region of £15,000. She has received details that the companies in question have passed the debts on and she is expecting bailiffs very soon.
She does have a house with her husband that will be sold when the divorce goes through and has been told because she has this asset that she cannot make herself bankrupt. But at the same time she cannot get access to the money from the house for a while yet on completion of the divorce. Is there anyway she can be helped to keep the creditors at bay until the house is sold?

She is in debt crisis as she cannot even afford to pay the minimum payments, although she has tried with the help of the CAB. She is having to pay rent and child maintenance, which basically takes up all her £650 per month wages.

Please help
thanks Scanny

doodledo_2

Hi and welcome to the forum.

I would suggest she talks to one of the debt free charities regarding her situation. They will take her case on and contact her creditors on her behalf.

If she is on a low income make sure she is claiming all the benefits she is entitled to as well.

stapeley

The debts are judged as joint so should be paid from the proceeds of house and if any thing left its split equally. But if there are children involved a divorce judge may decide she should get all of any excess .

Phlik

stapeley wrote: »

But if there are children involved a divorce judge may decide she should get all of any excess .

Assuming she is the one looking after the children, which if she is paying maintenance, probably isn't.

Phlik

RAS

Hi

She need to sort out Council tax, definately write to the council re the old house and the new one, then she should ignore the other debtors or send £1 per week. Can she get back-dated CT benefit?

She should speak to one of the debt charities about all of this.

She should not speak to any of the creditors.

Re bailliffs, apart from council tax it will be months before they are an issue. First they have to get a CCJ, which she is likely to be ordered to pay at a very low rate, then she has to fail to keep that agreement and then they have to go to court etc, etc. She will be able to ask for any court action to be moved to her local court and to make her case. Chances are the house will be sold before it get completely out of hand.

So get advice and stop worrying too much.