Bankruptcy?

saulhudson

Hi I'm writing to enquire from folk on here just what Bankruptcy will entail as regards affecting one's day to day life, Job prospects, or current job, loss of car, (essential for job) ability to get loans (Of ANY type, big four obviously out, but these dodgy pay day loans and the suchlike) bank accounts etc

This isn't for me but my wife who has walked out on me leaving a trail of creditors chasing after her, biggest is the Inland Revenue who are chasing her for £2770.00 in unpaid tax, none of the debts are joint or against the house, the house is in my name only now after re-mortgaging last year it was on condition that I was the only one on it.

I just want an idea of the impact it may have on her, (And any on me) as she's burying her head in the sand refusing to acknowledge the depth or seriousness of the problem preferring to refer to it as simply a small problem and she's 'dealing with it'....which I know she isn't.

As she has no way of getting enough to clear her debts she most likely will be made bankrupt.

Ames

The IR are one creditor who are known for making people bankrupt, especially for an amount like that.

It wont have any effect on you, so don't worry there. As long as you have no joint financial products at all then you're not connected.

For her, she'll be able to get a bank account, but only a basic one (no cheque book or overdraft), she'll have to declare it when applying for credit and it'll stay on her credit record for six years. Depending on her job it could be affected, if she's in financial industries or law for instance.

You can't force her to take things seriously, she has to come to that point herself.

If you want more info then the bankruptcy board on here is a good place to start.

dancingfairy

Link to the bankruptcy board:
http://forums.moneysavingexpert.com/forumdisplay.html?f=136

They are really friendly and will be able to answer any questions you will have.
Good Luck
df

milliemonster

My biggest worry in your shoes would be your house, even though it was remortgaged in your name only, this was only done last year, the official receiver may still have a claim on it as it could be seen that this was done for your wife to avoid having her share taken in the event of bankruptcy so you would really need to get further specialist advice on this.

As for jobs etc, certain jobs are affected by bankruptcy, these are some financial jobs, police etc, but its not certain.

She would have all her assets frozen, they would look at taking her car if it was worth more than approx £1k, if she needed a car they would allow her to have one but only of around that value.

I should imagine she wouldn't be able to get any credit at all for a while, but yes there are always some dubious characters that would lend I should imagine.

The Inland Revenue will make her bankrupt though if she doesn't pay her tax demands so this needs to be dealt with urgently.

She really needs specialist advice, more than we can offer on here, or even go over to the bankruptcy board, they are much more clued up on there than me

saulhudson

Thanks Ames, I'm going to CAB as I'm worried they may try and make her get her half of the house, something in fairness she doesn't want to do and is making no moves towards soclicitors as regards divorce yet as neither of us can simply afford one at the moment, I hear what you say about not being able to make her take things seriously but when it's the one you love, and have for the last 24 years it's hard, it batters my head just trying to figure out why, she had plenty of her own money, a good job (In the care line) lovely house and two kids yet this happens?

dancingfairy

I agree with Milliemonster that you need to get legal advice in case someone gets sniff of the house and wants it sold. Her creditors may argue she has paid towards the upkeep and has some interest in the house which could cause you some problems.
df

saulhudson

dancingfairy wrote: »

I agree with Milliemonster that you need to get legal advice in case someone gets sniff of the house and wants it sold. Her creditors may argue she has paid towards the upkeep and has some interest in the house which could cause you some problems.
df

Hmm this is why I'm first going to CAB, to be honest she has never contributed to the costs of the house in any way shape or form, I had to take over all of that due to earlier debt issues, and it has been that way for something like 20 years, the only thing she would help out on was occasionally getting the food, and even then it was only occasionally.

As for people maybe thinking we'd took her off the mortgage due to her debts, then they only need to ask the mortgage company their reasons why, (Santander) this was not a choice of mine but theirs and very much a case of take it or leave it, my wife was perfectly happy agreeing to it.

fermi

Does not matter why.

If the Official Receiver deems that she has a beneficial interest in the house then they can and will come after it regardless.

If it has previously had her name on it and/or she has been married to you with a property for 20+ years then it's quite possible they will.

Example:

pinky2810 wrote: »

hi, just joined today and i dont know what to do my head is all over the place, I thought all my problems was over the day i whent bankrupt, I went b/r in feb 06 had no i.v.a or anything and i got an eary discharge in sept o6 just 7 months later , I live with my partner (not married )who i have been with for 20 years we lived in a coucil house at first and 10 years ago he bought this property we have now , i did not go on the morgage at the time as i was in debt then all my life i have never been good with money so he bought it in his name only, then over the years again i ran up debt again ( i do this secretly ) till it got too much out of hand and i broke down and told him how much i owed out, he was gob smacked , we looked into bankrupty and we was more or less told that it would only affect me , but recently he whent to sign for a new car and was rejected ( he has never been refused credit in his life) then he applyed for a credit card refused again. now this morning we both got letters saying that as i contributed into the househld goods and bills that they are seeking possession of 50% of the house , i have brought him nothing but trouble how can they take his house away, why now , why was none of this said before i went bankrupt, i saw a solicitor as well when i went through with it why was this never explaind to me , i would not no way have gone b/r if i new this was going to happen and he woulden't have let me is there anything i can do about this please someone help me

Ames

OP, is there equity in the house?

saulhudson

Well that's made my day cheers for that, I'll fight this whatever, my daughter still lives with me although starts Uni in September.

saulhudson

Ok been to CAB and feel a little more happy as it would appear that although she does have 'Beneficial rights' the Inland revenue cannot move on them, we've been in this house only 4 years and as my name is sole owner they will not move on it, she could of course employ a solicitor (Which she can't afford, and earns too much for legal aid) but as the whole subject of 'Beneficial rights' is a bit of a nightmare to prove any attempts could take a bloody long time, in fairness she isn't even threatening anything like that.

But what a day, have spent all day on an emotional roller coaster, texting most of it between myself and my wife trying to get her to seek professional help via CAB, and then trying to gently ease her back into trying to rekindle our relationship, maybe wait six weeks with no contact whatsoever so she could 'sort herself out' and then maybe go for a meal, no strings attached just to chat to be told ''Maybe, I can't promise anything'' this is a girl who in the past would leap at any lifeline that would get her back, but for some reason she's digging her heels in, despite her car insurance payment just being bounced for no funds in her account, Inland revenue after her, at least five other debt collection agencies, no home to speak of, (Although I strongly suspect she's shacked up with this weasly little predator who's latched onto her) and zero cash, and then I find yet another debt landing on the door mat this morning!

She wants to cut all communication for a bit now, so as I now know the house is safe for a while I'm gonna do just that, up to now I've been so upset that I've just basically been texting 24/7 as it's the only way I could have any contact with her, now I find she's still living a lie, still in complete and utter denial, so I'm just gonna see what happens now, she's almost running on empty now so either I'm wrong and the Predator isn't involved, or I'm right and he's putting her up and looking after her, if so...he's welcome to both her and her debts, I'm just glad none are in my name, and my latest Experian check shows everything ok, so my turn to see what happens, my guess is she'll crash and burn and this sneaky little *7^% will disappear, (or maybe not who knows?) then to be honest it's up to her to prove herself to me if she stands any chance of coming back, not the way I'd like it, I do still have a lot of feelings for her, but I dunno now...she's done this to varying degrees all her life and never faced up to the fact that she has the problem....maybe this will make her...or break her?