A Cautionary Tale!

breitling

Hi All,

Just a few words of caution about my situation which may be of use to others:

Since hearing, after 2 years with no contact, that a Trustee had been appointed in August 2006,to realise my assets (my house) , the costs have risen to more than £33,000.00 - that's an additional 50% on the original amount at Bankruptcy in six months!

My wife has been advised that she can make no claim for equity on the property in which she lives with our three children - we separated two years ago and she has maintained the house including paying around 40% of the mortgage through her benefits - the Solicitor acting for the Trustee has said that even if she were to apply for a Divorce it is too late - she cannot make any claim!

Not a good situation and there seems no solutions however, this may serve as a warning to others!

Breitling

shameless-about-money

This is ridiculous!

Surely your wife has claim on the equity simply because you are technically still married?

Have you checked this out with an Independent IP?

breitling

Shameless,

I agree - absoloutely daft - but my Solicitor, her Solicitor and the Trustees' Solicitor all say she has no claim - seems there's nowhere else to turn now!

What's even more crazy is that if I were to offer what the Trustee/Solicitor suggest is a reasonable offer I would actually be paying more than the original amount of the Bankruptcy!

Feels like being kicked when you're down!

Breitling

breitling

Some more information that may be useful to others:

My wife and I are separated, she lives in the family home and pays a portion of the mortgage through her benefits.

If I re-mortgage to pay the Trustee a settlement - my wife loses her benefits! If that wasn't enough, if the Trustee sells the house my wife is deemed to be making herself voluntarily homeless and thus cannot turn to the Council for help - not even B&B - she and the three children would be 'on the street'!

Talk about kicking you when you're down!

Breitling

Broken_hearted

I don't understand are they just taking the house to get the money back that you owed. All this should have been explained before you went bankrupt.

breitling

Hi Broken Hearted,

I originally went Bankrupt owing £63k - £20k of which was to my mother a claim for which she would be willing to withdraw - so effectively I owe £43k!

However, the are submitting to the court that they wish to repossess and sell the house to pay off £120k now - i.e. £63k plus £60k costs!

Yes I/we had bad advise but I was shocked (1) to find the amount now needed from the sale of the house (2) that if I did re-mortgage to make an offer to the Trustee, my wife would loose her benefits and (3) if the house is sold my wife is 'on the streets' with our three children because my Bankruptcy is considered as her making herself voluntarily homeless!

As you can imagine, I feel a little 'kicked'!

Breitling

Broken_hearted

I chose not to go bankrupt as I didn't want to lose my house but put my name down on the council list as I knew we were very near the edge. Luckily I'm managing to get out of debt slowly as we've been on the council list over four years and don't seem to be getting anywhere. I have two small children and DH is chronicaly ill, its madness.
Hope you get something sorted.

shameless-about-money

All this from the OP still doesn't make any sense to me

Richard_S

breitling wrote:

Hi Broken Hearted,

I originally went Bankrupt owing £63k - £20k of which was to my mother a claim for which she would be willing to withdraw - so effectively I owe £43k!

However, the are submitting to the court that they wish to repossess and sell the house to pay off £120k now - i.e. £63k plus £60k costs!

Yes I/we had bad advise but I was shocked (1) to find the amount now needed from the sale of the house (2) that if I did re-mortgage to make an offer to the Trustee, my wife would loose her benefits and (3) if the house is sold my wife is 'on the streets' with our three children because my Bankruptcy is considered as her making herself voluntarily homeless!

As you can imagine, I feel a little 'kicked'!

Breitling

Hi breitling,

I can't understand why your wife is being treated as if she's got no equitable interest in the house. You don't have to be married to qualify for an equitable interest; an adult child still living at home has a percentage of equitable interest in a property if they have been contributing to the mortgage and upkeep of the house.

I think addicted2cholcalte works in an O.R's office; maybe if you send a PM and ask her to have a look at your thread she'll be able to offer some advice. I accept that if you've got two solicitors and yr trustee saying the same thing then it's not looking good for you but it seems to contradict others experience.

Richard