divorce and debt

sporty1

Hi my cousin is in a situation i'll try to explain as best i can..
1.She left the maritual home approx 19mths ago and moved back into her terraced house she has a morgage on from when she was single she just kept the house rented it out to her sister. the morgage is in her name only
2. Her husband is still has the Maritual home they are getting a divorce , but apparantly it is up for sale for last few months.
3.She was a director of the company when she was with him, but since leaving she no longer has anything to do with the company.
4.She obtained alot of credit card debt when she was the director, as you can imagine "lifestyle" i know i have told her she was a fool....
5.i believe it is well over 25,000 i dont know the exact amount i havnt asked but from the way she talks it must be wel over that figure i know they are unsecured debts.
Situation now is..........
as appreciated she has a full time job, not very well paid of course from when she was a director, however she hasnt got the income now to pay theses debts as usually would, her husband seems to have been stalling on the divorce for some reason she foolishly asleft it up to him to arrange it 19mth ago, last week we drummed it into her to make the move andsort the divorce out and get things moving herself " which she has , hopefuully it wont take that long.
Question is , is there a clause or anything that anyone know about that if the ex partner doesnt live in the maritial home for so long , that they would not be entitled to any of the sale price of the house therefore maybe thats why he has been stalling n the divorce procedure??
Secondly , she has been advised to go bancrupcy by CAB and they said that the home ( she is living in now the terraced house whichshe has a morgage from in her name since she was single would not be a problem with bancrupsy as there is no Equity In it.. ( if she did go bankrupt ( which she dont really want to do ) is there a clause within the bankrupcy time if the housing market increase and the house then has equity would she then be made to sell it then
hope this makes sense "shes in a mess can anyone help with advice "

RAS

Hi

Asuming she is in England and Wales.

She no longer has anything to do with the company??

Has she resigned from the directorship and ensured that her name is no longer regsitered with Companies House? We hear horror stories on here about Company Secretaries who thought they were not longer involved and are being sued.

If she has no equity in her main home, then she may be able to keep it if she goes BR. What is the cost of a rental for a comparable house locally - against the mortgage payments. As a rule if there is no equity the OR will sell her or her nominee the Beneficial Interest for £1 plus the fees (about £230) after 12 months if there is no gain from er moving into rental. In theory they could retain an interest for 3 years but in the current market that is unlikely.

Any equity in the other house will form Beneficial Interest and the OR will look to release that. Her ex or another person can buy this from the OR for the agreed sum.

She needs proper advice on the other property because it depends what sort of joint ownership they have ? Tenants in common? I would gues it is most likely he is stalling because he does not have the available capiutal or access to credit to buy her out.

How much equity is there in the other property? is there enough to cover part or all of her debts?
Does she know about reclaiming PPI and charges for late payments?

I would suggest she also talks to a solicitor urgently about the possible situation re the divorce and that she rings the other debt charites http://www.moneysavingexpert.com/loans/debt-help-plan#help for advice when she has some idea of whether she will get any sort of settlement.

As if she gets any sort of settlement as an undischarged bankrupt, or if she has surplus income and is paying and IPA, in the three years after going BR, then the OR will take it.

sporty1

Thanks for that i believe yes? there would be enough or a substantial equity in the maritual home if it was sold to pay a great deal of the debt if not all of it i would assume! as it is in a better area detached with double garage etc

RAS

So she needs advice as to what share of that equity she could expect from a solicitor.

Then she needs to start divorce proceedings. She can go it alone in the ealry stages but when she gets to teh fionacial bits she needs a lawyer.

She may have to explain to OH that if he does not release the equity she will have to go BR and then he will have to remortage to pay the OR.

Does she have any other joint debts?

Any other joint accounts with OH?

She does need to talk to a debt charity ASAP.

sporty1

hi no debts in her name, she has contacted cccs who have done her a budget to send to creditors, and she has now at last not leaving it to th OH to arrange the divorce, she as started it herself with solicitor i believe , so she said
thanks