Ex-O/H declaring Bankruptcy between Nisi and Absolute?

astevens4

This is to ask the Bankruptcy Whizzes where i stand on the above

The original content i posted on a different board is here

http://forums.moneysavingexpert.com/showthread.php?p=46508119&posted=1#post46508119

I have to say i feel a lot better now, but would still value the opinion of some BR guru's!

Thanks

Tony

debtinfo

I think most of it has been covered on the original thread, as far as debts, you dont inherit hers becuse of the bankruptcy, you would only remain liable for any joint debts you had.

as to assets, yours are yours hers are hers, joint assets would be split, this doesent make you bankrupt or anything like that, just that you would have to give up or buy out half of any joint assets, (although it does not sound like you have any/many anyway.

one question, is she still on the deeds or the mortgage, when was it given over to you, did you buy her out, one thing that the OR in charge of her bankruptcy can look at is recovering assets from you if they were given at an undervalue or for no consideration, but again nothing to be unduly worried about

Ineedaname

Only individuals can go BR. If you have no joint finances whatsoever then her going BR will not affect you or your job.

Apply for your statutory credit reports from all three agencies immediately though, just to make sure there is no financial association between you. If there is then you need to dissasociate yourself on your records without delay, preferably before she goes BR.

As far as the house is concerned, how long ago did she declare no interest in it and do you have something in writing to confirm that?

If her OR was to decide there was beneficial interest in the house and her half comes to about £7.5K as you believe, then you would be offered the opportunity to buy that back from the OR. Generally, a reasonable offer below the equity value would be considered.

I take it that there is equity in the property at the present time?

astevens4

Thanks Inan and debtinfo - she was never on the deeds or mortgage - always in my name, deposit was a gift to me from my parents. Disassociated with all 3 agencies before crimbo last year as was fed up of the debt collectors contacting me!

The papers to waive interest were around 4 years ago - she had to go see a solicitor and have it explained what she was giving up, and to make it binding - loan company cant find it though, and am trying to locate the original solicitor to get hold of a copy.

She also had to sign something when i got the mortgage, but that wasnt in front of a solicitor, and therefore im assuming not binding.

My expectation on seeking a financial order once the BR dust has settled is that the judge will still grant her an earmark on the 50% equity share in the house, but not until/unless it's sold. If the OR tries to enforce a sale i could probably beg/borrow/steal enough to pay them off in full, and theres pluses and minuses on both sides there!

The house is the only asset either of us owned, as for our whole marriage, whilst i was working and studying at the same time i was raising us all (3 kids plus both of us - she never worked) on around 17k - 3 months after she left i qualified and my income doubled, so much more able now to clear away the dust of the past, financially speaking.

Thanks

Tony

Ineedaname

It sounds like you're on top of things so far. Just keep trying to track down that paperwork on the house and mortgage so you have it when needed. Otherwise, sit tight and fingers crossed the OR won't bother about any beneficial interest, if she's never worked and the house has always been in your name then hopefully you'll be OK.

Can you pop back and let us know the outcome though please? Always interesting (and useful) to hear the end of a story.

astevens4

of course - currently saved to bookmark, so i dont lose it

Thanks again

Tony