Desperately in need of advice

Herbie1809

Just received a bankruptcy petition to appear in court in March.

Got divorced 7 years ago and was left with about £40,000 debt in my name. My only "assets" are a laptop computer and a mountain bike.

I have no joint-debts with my new partner, who I live with, but my partner owns her own home.

I am working full-time and I earn about 16000 a year, but I have to pay the CSA £250 every month to support my daughter.

I simply have no realistic chance of ever paying these debts.

Can they take my partner's home? Will she be dragged into my debts?
Will they take half my wages each month to pay towards the debts?

Completely up a certain creek without a paddle and desperately need some advice about what my options are.

Many Thanks

Mouse1812

Don’t worry about the laptop and unless the mountain bike is worth over £1,000 don’t worry about that either.

While they can not just “take” your partner’s home, you might have acquired a beneficial interest in its equity. If so they may try and collect that, so a bit more information will let us advise you.

Do you know how much equity is in your partner’s home?
Do you make any financial contribution towards the mortgage? Or household expenditure?
How long have you been living with you new partner?

The amount of your wages taken will be limited to the “surplus” you have each month after paying for your fair share of the domestic living expenses and other essential costs such as travel to work.. This is known as a Income Payment Agreement (or Order), search this forum for more info. It is possible to have no surplus and therefore no obligation to pay anything.

Check out this link to start with and then pop back with any questions.

spacey2012

what are you paying and when did you last pay anything to them.

alastairq

plus, who is petitioning for your bankruptcy?

You may have reason/evidence to challenge the debt ,[either amount, or existence]...which, if presented in Court, may stoop the proceedings.

Be aware, a creditor may petition someone's bankruptcy for a s little as £750 of debt.

Herbie1809

Hi,

Thanks for the replies, everyone.

I have'nt paid anything off the debts since I was divorced. Basically, as soon as I had to find somewhere else to live, I just went into financial meltdown.

I've been living with my partner for about 4 years,now, but the equity in the property will definitely be less than £10,000.

My name is not on the mortgage or anything, and what worries me most is my partner being dragged down by debts that are not her responsibility.

I'm aware the debts are my responsibility, so I have to deal with this, but the debts were created by an unfaithful sprendthrift of an ex-wife.

One of my creditors-a credit card company- has now taken out a court petition against me. Originally, I thought this may be a good thing as there is no way I can round up £750 or whatever to pay the bankruptcy fees, but now I'm petrified my partner is going to get dragged into this.

On top of everything else there is the imminent threat I may lose my job.....

alastairq

I haven't paid anything off the debts since I was divorced.

Have you had any contact with any of these creditors subsequently?

I've been living with my partner for about 4 years,now, but the equity in the property will definitely be less than £10,000.

My name is not on the mortgage or anything, and what worries me most is my partner being dragged down by debts that are not her responsibility.

It is possible a creditor believes you have some beneficial interest [of sorts] in the equity, and hope to tap into that via a personal BR. ***

How have you arrived at the equity figures in the property? Or, is the above a guess?

Your partner will not be involved in your debts, or your BR.

However, if beneficial interest is deemed to exist, the OR will seek to acquire it [subject to certain minimum values, etc].

Mr Mouse-of-this-parish is more clued up on this sort of thing than I.....





***....ensure you have no joint bank accounts, etc..by which your partner can be financially linked to you.

debt_doctor

Just as a point of interest, although all the books, training and related info talk about beneficial interest of non owners, I have never once known any bankrupt who was not the legal owner be taken to task over the beneficial interest issue.
This includes several people who had lived in their partners houses for up to 20 years, and had made household budget contributions or other.
Maybe it has something to do with the fact the the costs of establishing the beneficial interest for non owning bankrupts is bourne by the IS? - and can be very expensive.
I'm certainly NOT saying it doesn't happen, but I am saying it is far, far less common then we might think.

DD

Mouse1812

Herbie1809 wrote: »

Got divorced 7 years ago and was left with about £40,000 debt in my name.

and

Herbie1809 wrote: »

I have'nt paid anything off the debts since I was divorced.

Have you acknowledged or agreed these debts at any time during the past seven years?

How did the debts arise? (Were any of them anything to do with a past property?)


Re your partners property debt doctor’s observation is valid, but we do need a bit more info to give you clear advice.

alastairq

re-DD's observations?

I suppose a creditor would think along those lines as well? Cheaper to BR an individual, and let the IS sort out any BI......than to establish how much interest the debtor has, themselves?