How would my husband be affected by my bankruptcy

ladysmith_2

Please can anyone point me to where to find out how my husband would be affected by my bankruptcy?

My sole trader business is losing customers and has one big default whihc has given me an immediate cash flow problem.

The house we live in is in my name ( we are a second marriage) and has virtually no equity left now, according to a recent valuation.

I have substantial personal credit card debts which, for the first time ever this month, I cannot service.

The only thing my husband owns is a vintage car worth about £15k. He has small, erratic earnings (he is 64).

I need to know if, and how, these would be taken into account.

Thank you!

EnslavedByDebts

Hi an welcome.

So long as the car is in your husbands name then it will not be taken. You will nedd to show his contribution from earnings to household bills but he does not have to disclose his earnings.

Unless you have any financial association with your husband, ie joint bank account, joint mortgage etc then you going bankrupt will have no impact on your husband.

EBD

ladysmith_2

We have no joint account, or joint mortgage, or anything, so thank you very much for that assurance!

philnicandamy

Nope....as long as the cars in his name & you have no "joint" debt then you'll be ok

thatsyourlot

Hi,

I am going through pretty much the same as you at the mo, the only difference being that I rent our property, rather than own it.

I am also a sole trader/self employed & my online business is not going so well either. Like you, this is the first month that I will not be able to pay what I owe... its pretty scary & Im gutted that my business is going down the tubes.

I was a little worried that my own BR would effect my hubby but as we have no financial ties what so ever, then it should not effect him at all.

I dont have a bean to my name & certainly no assets, so I was advised to go BR as I have nothing to lose (cccs advised me of this)

I have filled in all the forms I need to & as of Monday I am ringing my local court to see when they can fit me in.

I must say that the other people on this forum have been fabulous but if I can be of any help at all, ask away....

Good luck with it all

xx

ladysmith_2

I'm scared too!

And it's no help owning a property when prices have fallen so much!

I've been trying to sell for nearly a year (when I would have had enough to pay off all the debts) but all the potential buyers have fallen away for various reasons.

I hope all goes well for you.

peachyprice

Sometimes Ladysmith, what can seem a bad thing turns out to be a godsend, if you do decide on bankruptcy, negative equity is your friend.

ladysmith_2

I sort of hoped that, as there is about £10k equity at best, that I could escape without the house being sold.

But I guess that's not possible.

tigerfeet2006

It is very possible to save the house. First of all get a couple of valuations done. Tell the EA that you need a quick sale due to relocating so it needs to sell asap. See what valueation you get then. If you are only looking at £2kish then the OR will most likely let your DH buy the OR's interest in hte property for £1 plus around £211 fee's. If it is any more then you can negotiate. One poster had £20k equity and if I remember rightly her MIL bought the BI for around £8k.

So take heart, ring Business Debtline on Monday (link and no. in my sig.) and get some advice on your options.

ladysmith_2

Gosh, I had no idea that woudl be possible! Thank you so much!!!

ladysmith_2

I have just talked to Business Debt Line, and they think that an IVA is possible!!!!

They have been incredibly helpful -I am so grateful.

Thank you for your help and advice