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Ex husband about to go bankrupt

Mushy.Pea_2
Posts: 3 Newbie
Firstly, I'm sorry if I've posted this in the wrong section - only just registered on the site 
My divorce came through in November 2009, and since February 2010, I've been living with my new partner in his house. The ex husband moved out of the former matrimonial home in August 2009, and since then I've been paying all of the mortgage (which was switched to interest-only last July).
The ex has been refused to pay towards the mortgage whilst I was living there alone, as 'he had his own living expenses to fund' - but now the property is empty, I'm of the opinion he should be paying half.
The house has been up for sale for the last couple of months for £140,000. The outstanding mortgage is £135,000. The property and the mortgage is in our joint names.
There is a bank joint loan for £15,000, which he hasn't paid anything towards for the last couple of months.
His solicitor said he was entering into an IVA, but apparently this is no longer appropriate, and I've found out this morning there's going to be a court hearing next month for his bankruptcy petition to be heard.
When we were married, there were 4 credit cards in his sole name, and a further loan in his sole name, which roughly totalled £20,000. In June 2009, I took out a loan for £10,000 towards my 'half', as all of these were taken out whilst we were married - he said he would use this to pay towards the credit cards and loan, but hasn't done - he went an bought a new car instead!
I've tried ringing a few of the debt helpline numbers, but they've said they can't really give me any advice until the petition's been heard by the court, as there's the off-chance it could be refused.
Any advice on what I can do?

My divorce came through in November 2009, and since February 2010, I've been living with my new partner in his house. The ex husband moved out of the former matrimonial home in August 2009, and since then I've been paying all of the mortgage (which was switched to interest-only last July).
The ex has been refused to pay towards the mortgage whilst I was living there alone, as 'he had his own living expenses to fund' - but now the property is empty, I'm of the opinion he should be paying half.
The house has been up for sale for the last couple of months for £140,000. The outstanding mortgage is £135,000. The property and the mortgage is in our joint names.
There is a bank joint loan for £15,000, which he hasn't paid anything towards for the last couple of months.
His solicitor said he was entering into an IVA, but apparently this is no longer appropriate, and I've found out this morning there's going to be a court hearing next month for his bankruptcy petition to be heard.
When we were married, there were 4 credit cards in his sole name, and a further loan in his sole name, which roughly totalled £20,000. In June 2009, I took out a loan for £10,000 towards my 'half', as all of these were taken out whilst we were married - he said he would use this to pay towards the credit cards and loan, but hasn't done - he went an bought a new car instead!
I've tried ringing a few of the debt helpline numbers, but they've said they can't really give me any advice until the petition's been heard by the court, as there's the off-chance it could be refused.
Any advice on what I can do?
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Comments
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Hello and welcome MP, yes you are on the right site. I'm not sure about this, but someone on here definately will, if not now later in the day so don't lose heart if your not answered straight away.
Best wishes
If...x"If wishes were horses, then beggars would ride"
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Hi MP
I'm not sure if the CAB might be able to give you some advice??
I'm in the midst of a very messy and expensive divorce....
Re: the house and the loan (someone will confirm this for me) I think if you ex does go BR then you will be liable to pay them. Is the bank loan secured on the house? I am sure someone will be along soon to explain about BI in the house as there is not much equity so you might be allowed to buy that from the OR - then maybe if you are not going to live in the house maybe rent it out? until the market increases? I'm not sure just some ideas.
Regarding the loan you took out to pay your half of his bills...... I'm sorry but I think that is something you will have to swallow, as you took it out in your name. I know it's horrible but esp now if your divorce is final. I have a bitter ex who expects me to pick up half of his debts!
What was in your court settlement regarding the house? is there an order that it should be sold?
Sorry I've not been very helpful but as Wishes says please hang around and someone will be along later to offer something else.
I'm off to see my solicitor today as my ex wants me to pay him Occupational rent as I am still living in the house - he has not contributed to the mortgage or joint credit card since moving out!
So I can see where you are coming from!The worst cliques are those which consist of one man ~ George Bernard Shaw
Holiday Saving fund 2010 = £25.00WeightLoss 2010 = +6lbs
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Hi Sunny
CAB said the same thing as all the other debt places - no-one seems to be able to advise until they know one way or the other whether the petition will be accepted!
The joint bank loan isn't secured on the house. When I was living there on my own, I enquired about having the house transferred into my name, but the mortgage lender wouldn't agree to it. Renting it is an option, but the ex needs to agree, and surprise surprise, he's ignoring me and not giving his solicitor any instructions!
re the £10,000 I took out, it says on some other forums that I could maybe be listed as one of his creditors - don't know how true that is??
There hasn't been a court settlement re the house or finances - I was pushing for a consent order, but the ex wouldn't agree to what had been suggested - the only thing we did agree on was that the house should be put up for sale - it's been stood empty for the last 2 months!
The ex threatened the occupational rent thing with me as well, so you have my sympathy
Hope all goes well with your solicitor later x0 -
O gosh MP it is a nightmare.
Madness so he would rather let the place sit empty than agree to renting it out!!
Not sure how he can get Occupational rent from you esp now it is empty - I;ll send you a PM later when I get back from my solicitor and see what she says about it.
I'm not sure whether you can be listed as a creditor - again hang around and someone will advise (I'm a relative newbie!!!) I guess you would need to prove that the loan you gave him was meant for credit card bills as from the way he sounds he is the sort of person that will say it was a gift.
I'm not allowing our divorce to be finalised until our finacial settlement has been agreed, and it's a mess! Esp when we are arguing about blooming debt!
My ex would rather us both go to court and we will both end up paying over 10K in court costs!!
Oops sorry for over taking your thread with my rant!!
I do have a feeling that you if he does go BR you will be liable for the joint loan - it is so horrible. I know my solicitor said when I was thinking of going BR that my ex would have the right to contest it (ie if he thought I was just going BR to get out of paying him - however I can prove that I have been looking in to it since last summer and my finances speak for themselves) So not sure if you would have grounds to contest, but in my experience anything that involves you having to go to court or get solicitors involved will cost you money and sometimes you just have to try and swallow things (no matter how bitter they taste)
Sorry not really great news from me, but as both Wishes and I said other people will comment later and might be able to offer some better advice than me.
Right better get on as got to leave shortly.
Good luck hun
xThe worst cliques are those which consist of one man ~ George Bernard Shaw
Holiday Saving fund 2010 = £25.00WeightLoss 2010 = +6lbs
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Petitions are rarely refused.
You will be liable for all joint debt, solely and completely as you have both divorced as equally as you went in (from the sounds of things). So, no liabilities have changed. Everything that you owe in your own name you will still owe and everything you both owned together you will still owe and he will not be liable for a string bean.
What he did with the £10k you gave him is no ones business but the ORs and obviously you owe the money to whomever you borrowed it from. You cannot be a "creditor" for this amount of money as you did not lend it to him. And besides, you are not going to see a penny if he has no assets to give up in BR anyway even if you were able to go down this route.
His BR will affect you and your credit rating - you are finanacially linked so every search on you will bring up him.
So.... If you total all your debt and what you be liable for when he goes BR; what sort of position does that leave you? Does going BR yourself scare you????0 -
Thanks Sunny and Skylight
Sunny:
re the 10k - I got him to sign a letter detailing the account numbers for the credit card and his loan, together with the balances at the time - the idea was that this could be attached to / referred to within the consent order, so he couldn't try and claim anymore from me - I don't think he would be able to make out it was a gift?
Incidentally, he threatened to declare himself bankrupt last year if I didn't pay him this money, so I put that in the divorce petition!
Skylight:
If I can pursuade the mortgage lender to keep the mortgage on an interest-only basis until the house is sold, I can just about keep my head above water, but only JUST
Bankruptcy or an IVA isn't an option for me because of the job that I do - my professional body would kick me out and then i'd be out of a job0 -
Hi mushy pea.
Sorry to hear about your problems.
Skylight is spot on the way things work, so not much good news there.
If he does go bankrupt and the equity in the house is say £3k after paying agents and solicitors the OR would take 50 percent of this. But it is highly unlikey they would do anything as it is up for sale and would cost them to much, so would probably leave it up for sale and hope it makes a bit without them getting involved.
It can be very hard on the other person when joint debts like this happen, I feel for you.
Sorry I can really think of any thing at mo.
But wish you good luck sizzler:)0 -
Hi MP
If he goes BR I don't think there will be much you can do about the 10K loan. At the end of the day you gave him that money and in your divorce financial settlement they will probably take that into account, esp if you got him to sign a letter, but you have him that money to kind of settle with him, and as Sky says even though it must grate he never used it to pay his bills but that is down to him. So I do think you will probably have to just swallow that. It really is so unfair!
This is why I will not allow my divorce to be finalised until our financial consent order has also been agreed.
I am sure if you explain to the lender the situation they will probably keep you interest only - I've been IO for about 3 years now, my house on the market.
xxThe worst cliques are those which consist of one man ~ George Bernard Shaw
Holiday Saving fund 2010 = £25.00WeightLoss 2010 = +6lbs
BSC 292
June NSD 11 :TJuly NSD 15:TAugust NSD 14:TSeptember 9:T October 19:jNovember 15/110 -
With regards to the loan, you can tell whoever it is you aren't willing to pay - explain the circumstances.
They'll register a default against you, but you can make an offer to pay say half of it.
My girlfriend is in the same sort of situation, although they are now divorced. The joint account they held (with a 3K overdraft that was taken out because he left his job and didn't get another one) has been passed soley to her. She's told the bank she has no intention of paying it and they've started the process of trying to reclaim it, from what I gather they send one letter asking for it back before passing it to their solicitors to deal with. She's then going to make a full & final offer for half of it. (This was on advice of Consumer thingy thingy) and they apparently are likely to accept, downside is the imposition of a default of course but its better than paying for all of it because he got himself in a mess.0 -
Thanks Sunny and Skylight
Sunny:
re the 10k - I got him to sign a letter detailing the account numbers for the credit card and his loan, together with the balances at the time - the idea was that this could be attached to / referred to within the consent order, so he couldn't try and claim anymore from me - I don't think he would be able to make out it was a gift?
Incidentally, he threatened to declare himself bankrupt last year if I didn't pay him this money, so I put that in the divorce petition!
Skylight:
If I can pursuade the mortgage lender to keep the mortgage on an interest-only basis until the house is sold, I can just about keep my head above water, but only JUST
Bankruptcy or an IVA isn't an option for me because of the job that I do - my professional body would kick me out and then i'd be out of a job
Re the 10k loan. If he does go Bankrupt, at the end of the day whether or not it goes down on his statement of affairs that you are a creditor for this amount is frankly immaterial. All his debts will go down so you will rank alongside all the others, there may be preferential creditors i.e. tax, NI contributioins etc who will have to be paid before you. Then of course there is the OR's/Trustee's fees in handling the case, again paid before the Peferentials and you and the rest.0
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