Husband's bankruptcy - please help :(

bobbingalong123

It's already part of a major investigation so I doubt there is much more they can do on that front to be honest!!!

freddy911

As for the property you should be ok to dispose of it at fair market value in the current climate, obviously fully declare it to the OR and dont touch the cash.

Good Luck

wildheart83

If your husband is working, it will depend on his contribution to the household as to whether he is asked to pay anything to an IPA. Obviously if he is not working or in receipt of benefits only, he can't pay anything towards an IPA, however if his circumstances change, you have to inform the OR within 21 days.
If his income increases (ie he gets a job) I think you would need to show that he is paying an increased percentage to the household bills.
Someone will be along soon to explain how the percentage bit works
I think if the police are already involved, a BRO is lower on the list of priorities.

LillythePink

A bit off topic, but have you or him considered that he may go to prison for this - if it is serious, so your questions about orders/living expenses etc may be irrelevent at some point.

I agree with srichar - you really do need professional advice

bobbingalong123

Lilly - yes, we know that.

alastairq

hi....if your OH petitions for BR, then only his assets will be realised for the Bankruptcy.

Your income isn't touched.

Where your income comes into play is when calculating your contribution [share] to household living expenses, with regards to your OH's SOA.

Your OH's contribution [share] to the above expenses will depend upon his income....and whether he is claiming some sort of benefits or not.

Once BR, all income, and changes in financial circumstances, must be reported to the OR......

An IPA/IPO will only be agreed for any surplus income your OH earns.....

All the above only really applies if everything to do with your OH's finances are legal and above board.....

debtinfo

bobbingalong123 wrote: »

I imagine this might be the first of quite a few posts...

This might be a bit complicated so please bear with me...

Husband has to go bankrupt. His debts are over £1m. I won't go into the hows and whys but needless to say bankrutcy is his only option.

I earn quite a good salary £40k gross roughly. We have a 9m old son.

How will my income be taken into account for a repayment order? Am I going to be made to pay for more than half now even though this is nothing to do with me? (And I in fact knew NOTHING about a lot of the debts..... for another thread maybe...!!!)

Also - some of the debts might have been fraudulantly obtained (again, I knew nothing about this...). I understand this can lead to a restriction order. Can somebody tell me about them and how they work????? Basically they extend the restrictions of the bankruptcy for between 2 and 15 years, If fraud has really occured though then this is the least of the problems

He had been earning quite good money but as a company director which he now obviousl can't be. Basically his income has now dropped to a big fat £0. We've decided he will be primary full time child carer and I will go back to work full time (only P/T at the mo). Will this mean he wont have a repayment order? But let's say he gets an evening job and earns a little bit of money - will they just take this because I earn a lot??As has been stated above you will not pay for his debts, all you are expected to do is to pay a fair share of the normal household outgoings

Basically if he earns a bit of money I would like him to contribute to rent and bills quite frankly. I have a lot of debt myself (which I manage fine) and dont want to be paying for EVERYTHING!!

God I have no idea how this works!! I've read so much online but learnt nothing! Please help!!

Also, he owns a property. Can he sell it? Provided not at an undervalue? If he puts money on account with sols will this be ok? Just that it has a bridging loan on it which will accrue interest at the rate of £3k per month starting next month. Going to wipe out any capital for creditors if he just leaves it!!!!!!!! (Has about 40k equity in it) Yes he can sell the property at a market rate and at arms length but must not dispose of the proceeds

Also with the "fraudulant" bit - is it right that these debts cannot actually be written off??yes if fraud is proven What if his bankruptcy goes through before he is even charged with anything?does not matter what order events happen, they may initially be included but will be removed from the bankruptcy if fraud is proved (investigation ongoing) Who decides if they were fraud or not?The court (in the action brught against him not at the bankruptcy proceedings) And if you cant write them off, what happens then?The debts will remain in force Am I going to have baillifs on my door for the rest of my life????

Sorry, quite a few random questions Please help. Our lives have changed forever I knew nothing about all of this and am trying to hold our lives together for the sake of my son

see above....

bobbingalong123

You say "the debts will remain in force" but what does that ACTUALLY mean??? He won't be earning anything, and will own NOTHING??! Will bailifs just keep turning up.... forever?! How can that possibly be right????!

FraudBuster

bobbingalong123 wrote: »

You say "the debts will remain in force" but what does that ACTUALLY mean??? He won't be earning anything, and will own NOTHING??! Will bailifs just keep turning up.... forever?! How can that possibly be right????!

Non-provable debts.

non-provable debts, such as court fines and other obligations arising under an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991. Non-provable debts are not included in the bankruptcy proceedings and you are still responsible for paying off such debts;

Not all of your debts can be included in your bankruptcy, these are known as non-provable debts and you will be responsible for continuing to pay them. These include CSA assessments, fines and maintenance and any obligation under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986, or section 71 of the Criminal Justice Act 1988 or under Parts 2, 3 or 4 of the Proceeds of Crime Act 2002.

There are some debts you will not be released from when you are discharged. These include:

• any debts obtained through fraud;
• a liability to pay damages in respect of personal injury to someone; or
• any obligation to pay a lump sum or costs made in family proceedings or under a maintenance assessment made by the Child Support Agency.

http://www.bis.gov.uk/insolvency/personal-insolvency/bankruptcy-debts#debts-included

bobbingalong123

Yes yes yes I get the point!! They won't be written off. But what does that actually mean in practice?????? If he earns nothing and owns nothing and is bankrupt HOW will they pursue it???!!