No way out from Bankruptcy....beware

Jane61

I'm inquiring about Insurance Indemnity
ME...Hi I'm copying all which i put on another forum as I haven't found a solution so here goes. I may be free from my ex husband after 20 years of being divorced!!
After 14years of being divorced from my ex husband and paying off his Trustees for his bankruptcy last April which was held on my home which has now been sold to that I can pay off the money which I had to borrow. The fiancial side of things of our marriage could then be sorted out. In Jun 08 I had to pay my ex husband off to enable the house to be transfered solely into my name. I am now in a position where I am wanting to buy another house and hopefully move on but someone has said that I should take out this sort of insurance just in case my ex husband goes bankrupt again within the next 5 years. Can someone please help me with this
Also this may be a warning to others....I have a very long story to tell on this.

Some1else....If you are divorced and the house and mortgage are in your name, I can't see that you have anything to worry about.
Re: Insurance Indemnity
Me...Thanks for the reply
You'd think that it would all be over by now BUT.... according to the law... because I didn't pay him for the full amount of what his half of the equity was, the new trustees, if he goes bankrupt again can come after me for the rest.
As I understand it...say if the equity after I sold the house was £100k equals half £50k and I only paid him £10k then the Trustees can come after me for the other £40k within the next 5 years of our settlement. Sucks doesn't it?
This is how unfair the law is....we both signed for the house and mortgage in Oct 94...by the Nov 04 he decided to go and live with someone else but I and my 2 small children moved in by oursleves. By the Jan05 he said he wasn't going to pay for me anymore as the business he he ran on our behalf was going to fold and that I shoul go and sign on.
May 95 I started divorced proceeding and I believes my solicitor that although the divorce could go through the finanical side couldn't be sorted due the the fact of an inpending bankruptcy. So things was left partly due to the fact that not only was I solely bring up my 2 young daughters but (and I can't really say it was depression but I was totally down) I took what the solicitor told me as the truth and that at some point I would lose the house. Oh and bear in mind that the bankruptcy was for at that stage £2k for me and £4k for him
In 2000 I was informed that some Trustees was being appointed our case. I tried to negoiate with them but because He was on the house deeds they would not consider anything because he would pay his off. Must point out at this stage as well that apart from the 3 months which WE both paid the mortage off he never constributed towards the house nor the children. CSA later became a joke as he owed £0.00 as he wasnt earning. Yeah right...car dealer who doesn't earn a penny!!
Dec06 the Trustees called in the debt. They said I had to pay £46k or the would start reposession order. Saw a solicitor who yet again said 'not a problem...they'll sort it' BUT then it became 'a little bit more complicated then we thought'....(must have heard that 100 times.
Remortgaged my mothers house to raise the money as I couldn't get a mortgage on the house which was half his.
Trustees couldn't calculate very well and added another £23k into it and when I saw my solicitor...I had to sit watching her use a calculator checking the figures to get exactly the same as mine (She said that was the 1st time she had ever had to use a calculator wince she had been in practice for 5 years!!!!) Just makes you wonder how many just £1000 have been miscalculated and not been found out and have lined the pockets of someone else?!!!
After several times in court that was all sorted in sept 07 and then I had to start battle in the family courts to get the house fully into my name. The first judge said what I had paid off his bankruptcy was irrelevant and the the ex lied by saying that he had paid for his children which he never did and that he had lived in to house for 2 years...he never even had a cup of tea in it let alone a meal or slept there. I had all my neighbours ready to be witness to that fact.
I offered him a token gesture of giving him £2000 which was the deposit which we had both paid but in the end I had to give him £10k. The jusge did warn me though that if he was to go bankrupt within the next 5 years he new trustees can come after me . This is to a man who never saw his children, never paid a penny maintenance to them or to the house, started a new life and got married, had another child, had holidays aboard and generally lived the high life while all the time we suffered....and YES I am very bitter!
I had to sell the house last nov to enable me to off my debt to my mother and my aunt and now I live back in my old bedroom with me daughter at my mums.
SO I do not want to take the risk again as I do not have any faith in the justice system so can anyone tell me how I can protect myself for the next 1463 days? Not that I am counting away my life!! Just stuck in this one
Re: Insurance Indemnity
Some1else....Unfortunately if you owe £40k, insurance wont protect you though.
Re: Insurance Indemnity
ME....I don't owe anything....its just that IF my ex husband was to go bankrupt within the next 5 years after I had paid him off so that our family/financial matters was through...his new trustees can come after me for the difference of what his half of the equity was. This is so unfair
Re: Insurance Indemnity
Some1else...Sorry, I thought that you said that you hadn't paid over your ex's half of the equity.
Re: Insurance Indemnity
ME....Like I said 'Its a little more complicated than we thought'
The family court ruled that I had to pay him £10k seeing as I had paid off the £60k bankruptcy which he owed and for the fact that he had never paid maintenance for his children nor for the up keep of the house. After the house was tranfered into mine name only you'd have thought I would have been free from him...but oh no!! If he was to go bankrupt again within the next 5 years after the transfer, its my understanding that even though the judge rule was for a 'clean break' his new trustees if that was the case can come after me.
You have to bear in mind how devious my ex is....this is the man you even though had his name on jointly with me on my house...he manage to buy another house with the Halifax....How does that work out?...thought you couldn;t have 2 mortgages and then he managed to overload that with another from Northern Rock for more than 100% of the value from his house.
So now I'm asking PLEASE can some one give me a answer of what to do and to other ex's BEWARE its 'a little bit more complicated than you think' and 'surely the courts will be in your favor'...oh no they won't be

Merry_Gentry

Blimey, I was totally lost by the second paragraph but didn't want to post and run. Really hope one of the experts on here will be able to help you - did you get no assistance from National Debtline, etc?!

Jane61

13years ago things like that wasn't really around I don't think. But I'm just a normal person, who, when they go to see a solicitor you presume that they are giving advice and thats 'just what you do' I did try to negoiate with the Trustees in 2000 but they weren't having any of it and my parents wouldn't/couldn't help me out then knowing full well that because the ex was still on the house,he could come and take it when ever he wanted to.
So still in a ppredicament....I just want someone either to change the laws or to give me advice

Lensman_2

I would ring CCCS, National Debtline or see a CAB adviser if you are worried. You need to know where you stand.

I found it a bit complicated to read through (sorry), but can we assume that the £10,000 was the "beneficial interest" at the time?

spenderblender

And I thought I had problems. Sorry I didn't understand it and lost the thread along the way but, I hope you get it sorted.

fiveyearplan

Nothing I can add that would be helpful to you but it does stress my point that when people split they need to split all their joint finances immediately.

maxmycardagain

I know a cheap reliable hitman....

maxmycardagain

what i fail to understand is why you feel whatever he does now could impact on you, your divorced, and have no joint debts or joint assets?

its the matter of a possible claim that you underpaid him his equity in the house basically then?

Lensman_2

maxmycardagain wrote: »

what i fail to understand is why you feel whatever he does now could impact on you, your divorced, and have no joint debts or joint assets?

its the matter of a possible claim that you underpaid him his equity in the house basically then?

Hence my question about beneficial interest. Surely, if that has been purchased then all future title to gains in the property has been properly disposed of? Therefore, the trustees have no claim in reality.

The OP surely needs to challenge this.

peachyprice

It seems to me, (and excuse me if I've got it wrong your post was a little confusing), the reason you have had to pay up is because when the house was signed over to you the transaction was below market value, so you got £50k's worth of equity for £10k, is that correct?

However, if you've already paid back the full market value I don't see how you can be liable to pay it again. Have you spoken to anyone at the insolvency Service about this. Judges have been known to get things wrong, and I just don't see how you would have to pay back an under-value transaction twice.

As for indemnity insurance, I'm not sure there is such a thing, but it might be worth seeing if you can get an appointment with an insolvency practitioner to see if there's anything you can do.

Sorry not to have been or more help.

iquit

Hi Jane,
I'm not an expert but wandered if the fact that you took over his debt and family court ruled you only pay him 10k would that not mean you are clear and disassociated from him. Hopefully you've kept the paper trail to prove all of this. Please go to website debtdivas.co.uk. There is free phone number, they are all very helpful and experienced insolvency practitioners who should be able to help or at least point you in the right direction. Good luck.