The Bankruptcy Club & Supporters Club

sandralovescats

desmonds wrote:

They have included my wife in the equation and used her Child Benefit and Child Tax Credits to form a Total Income.


Desmonds

Okay. Going back to last week there was someone posting who works with an OR.

We had the same issue with another poster on this exact same subject.

The are not permitted to include Child Benefit in the income calculation. Nor are they allowed to include any other State Benefit or Disability Living Allowance or War pension. This is written in the Guides and Manuals for the OR.

Child tax credits and working tax credits , however, are included.

This applies to both IPA in bankruptcy and IVA calculations.

You can dispute the decision. There is a link from the insolvency.gov.uk website where this can be done.

sandralovescats

debt23 wrote:

Hi all,

Sorry, this might be a bit of a long post, so apologies in advance.

I’m going to read through this thread in detail – lots of great info here by the look of it, but I have a burning question so again, an apology if this has come up lots of times before.

I’ve also been on various government sites etc to figure this one out, but only seem to come away more confused – so here goes………

I brought my house in 1996 with a mortgage. My wife and I both paid £2500 towards the £5000 deposit and I got a mortgage in my name only for £50,000

For the next seven years, I paid the mortgage and the wife paid bills etc – a pretty even split

I would say that up to this stage, we both had a 50% interest in the property.

Now, I ran into debt problems (all of my own making) and my wife was not happy that I could keep the mortgage up. Fearing for the family home, my wife said that unless I allowed her to take over the mortgage, we would split.

So, she arranged her own mortgage with another lender, stumped up all the deposit and legal fees herself and, in effect, purchased the house from me.

However, she only paid the cost of the outstanding mortgage – about £40,000. The market value of the property at this time would have been around £110,000

That was four years ago.

She has, by means of lending from family, an inheritance and good saving, now paid her mortgage off in full and is the outright owner of the property (no Building society involved)

Over these last four years I have lived in the property but made no contribution to the mortgage payments. I have made weekly payments towards the housekeeping etc, but in all reality, it’s been my wife’s good accounting that has enabled her to buy the house etc.

House is now valued at £170,000

My debts are £60,000 – if someone were to bankrupt me, would there be any moves against my wife’s property?

Hope that’s all clear enough and thanks in advance for any advice.

All the best

Debt23

If the house is still solely in your name it is your house, regardless of who paid what, when or how.

Is the house still solely in your name?

In this case your wife would have beneficial interest in the house.

desmonds

debt23 wrote:

She has, by means of lending from family, an inheritance and good saving, now paid her mortgage off in full and is the outright owner of the property (no Building society involved)

Is the legal title solely now in her name? because unless it is then you still own 50% of the property regardless of the fact that she paid off the outstanding mortgage for you.

The title deeds when the house was purchased will state at that time the names that existed on the property and during the mortgage the mortgagee will also have had their name put on the title because of their secured interest.

Now their interest is no longer 'cos the house is paid for then all that stands is yours and your husband, unless you have bought his remaining 50% which I suspect you haven't.

So to do that now before bankruptcy will be seen as avoidance by OR.

If all this had been done say years ago then you would not have been accused of transferring ownership to better your circumstances in bankruptcy.

I just hope that you are the sole owner of the property and the title deeds in your name only because if the house is fully paid for and no outstanding mortgage then the OR will come after 50% of the equity which if you say is £170K then the OR would have £85K to play with which would cover the £60K
debt.

If it were me I would seriously consider alternatives like IVA because in your situation you would have to sell the house unless of course a third party was to buy the beneficial interest but who would have £60K!!!! in there back pocket.

I have gone BR and the only secured debt is the mortgage that I have with my wife.

There is only £5K equity in our house so the OR has interest in £2.5K.

My wife is going to purchase my beneficial interest from the OR so that he has no interest in it anymore.

If our house was paid for then the £120K debt that I owe would be taken by selling our house worth £350K.

Seriously loo at an IVA!!

Desmonds

sandralovescats

Desmonds, it sounds as if Debt23 bought the house in his own name, just that his wife took over paying the mortgage and had the mortgage changed into her name. If she holds/held the mortgage, but the property is in HIS name it remains HIS property 100%.

desmonds

debt23 wrote:

I brought my house in 1996 with a mortgage. My wife and I both paid £2500 towards the £5000 deposit and I got a mortgage in my name only for £50,000

You bought the house in your name and although your wife ended up paying off the mortgage then the house is still in your name unless of course you altered the title deeds.

Your wife must be very trusting because if she has paid off the house with her money she now stands to lose everything if the house does not belong to her.

Desmonds

L3ighton

can i ask a quick question? i dont know where to put a post up as i dont think this is the site to post it, i have lots of help from this site and i just want this problem delt with.

the problem i have is, me and my girlfriend took our camera to JESSOP's to be repaired on the 21st Oct, they said it would take 4 weeks, about 2 weeks before xmas i rang them up and asked whats going on why is it takin so long they said it went in for repair on the 12th Dec, i said i need the camera before xmas as my partner's family is comin over from abroad, so i asked for customer service number so i could put a complaint in, they gave me the number,
I rang them and told them the situation and they said they'll look in to it and they'll get back to me, when they did get back about an hr later they said the camera has been fixed and it is in the store ready to be picked up, cpl of days later got a letter through the post sayin the camera is ready to be picked up, so we went up there to get it, we waited about 20-30 mins while they looked for it and for them to come back to us and say that it is not here, they then said to ring up customer services when they open nearly a week later, when i did ring them they said it was in transit ready to be delivered, this was on the 28th Dec, i rang them today and they said it has been delivered to the wrong store, if i want to complain wright to....... they said and they gave me the address.

just need to know where i stand and what can i do about this matterand who else can i get intouch with.

sorry about this i didnt know where else to go.

Regards

Leighton

sandralovescats

L3ighton wrote:

can i ask a quick question? i dont know where to put a post up as i dont think this is the site to post it, i have lots of help from this site and i just want this problem delt with.

the problem i have is, me and my girlfriend took our camera to JESSOP's to be repaired on the 21st Oct, they said it would take 4 weeks, about 2 weeks before xmas i rang them up and asked whats going on why is it takin so long they said it went in for repair on the 12th Dec, i said i need the camera before xmas as my partner's family is comin over from abroad, so i asked for customer service number so i could put a complaint in, they gave me the number,
I rang them and told them the situation and they said they'll look in to it and they'll get back to me, when they did get back about an hr later they said the camera has been fixed and it is in the store ready to be picked up, cpl of days later got a letter through the post sayin the camera is ready to be picked up, so we went up there to get it, we waited about 20-30 mins while they looked for it and for them to come back to us and say that it is not here, they then said to ring up customer services when they open nearly a week later, when i did ring them they said it was in transit ready to be delivered, this was on the 28th Dec, i rang them today and they said it has been delivered to the wrong store, if i want to complain wright to....... they said and they gave me the address.

just need to know where i stand and what can i do about this matterand who else can i get intouch with.

sorry about this i didnt know where else to go.

Regards

Leighton

You need to phone Consumer Protection which is within the Trading Standards Office. The number for your area is in the phone book.

Good Luck!

OberonSH

Hi all,

I notice that a certain poster who replies to a few of my threads seems very keen on telling people a relative of theirs went bankrupt, walked away from all their debt etc, and why don't we all go that way.

I just wondered how everybody felt about that, someone saying how easy it is. It would have been something I considered (my debt is around £38k) except that I know I can pay mine off in a few years with a bit of hard work, plus I want to emmigrate and it's tough enough without a bankruptcy on my file!

Mike_St_Helens

OberonSH wrote:

Hi all,

I notice that a certain poster who replies to a few of my threads seems very keen on telling people a relative of theirs went bankrupt, walked away from all their debt etc, and why don't we all go that way.

I just wondered how everybody felt about that, someone saying how easy it is. It would have been something I considered (my debt is around £38k) except that I know I can pay mine off in a few years with a bit of hard work, plus I want to emmigrate and it's tough enough without a bankruptcy on my file!

I can see why some people may think that way, in reality though it isnt so easy. I think its more the mental side that my issue was with. The practical & Admin things are not that bad really once the big B day is over.

scootw1

I phoned my court today to ask about taking the papers in. They said whenever I turned up, if it was a Tuesday or Thursday I could see the judge same day. is that quick or what? Hoping to go in two weeks (and the countdown begins...)