My ex owes me money and is filing for insolvency

Millie36

When my marriage ended there was a house to sell which was mortgaged in both our names. We managed to sell it but there was a shortfall of £20,000. My family and friends loaned me half of the money. My ex could not borrow any money from the bank so I took out a loan for him as it was the only way to get out of a very difficult situation and try to start my life again. I have a young daughter and my ex agreed to pay for the loan each month instead of paying maintenance. Now I have had a letter telling me that he is now filing for insolvency. What will happen now? Am I now going to have the £10,000 loan round my neck for ever, in addition to trying to bring up my little girl. It is a real mess. I don't understand how insolvency works. Advice appreciated please. I am in work so no chance of legal aid for me.

[Deleted User]

I take it you have no proper contract, concerning your ex repaying the loan, and the loan is in your name only?

Millie36

I did have a letter of agreement set up by a solicitor and my ex did sign it. But the letter I received with regard to the insolvancy stated that I would not get a penny. He also made several errors on the for eg. He said he had re-mortgaged our house which he did not and there were wrong dates and no mention of his child

alastairq

The loan will be yours to pay....I suspect.

However, regardless of the Bankruptcy, he will still be liable for Child Support. He will be claiming for this payment on his Statement of Affairs.

You may need to involve the Child Support Agency, to recover these monies?

Millie36

That does not look very good for me if I have to try and pay the loan myself. When it was stated that he would have to pay £100 be paid to debtors each month. Why am I not entitled to anything? How is it decided which debtors get paid and which don't? And will Child Support payments take priority.

DUTR

Millie36 wrote: »

That does not look very good for me if I have to try and pay the loan myself. When it was stated that he would have to pay £100 be paid to debtors each month. Why am I not entitled to anything? How is it decided which debtors get paid and which don't? And will Child Support payments take priority.

No, it does not look good, CS contributions do take priority though.

dojoman

Unfortunately for you if the loan was an unsecured one it would automatically fall in to the BR if it was his, however as it is in your name he will not have to pay a penny back to you for the loan, as this would be seen to preferring one creditor over another which is not allowed in BR.

National_Debtline

Hello there.

If there is an agreement that he owes you money, you would become a creditor within his bankruptcy. That means that if he is asked to make a financial contribution into the bankruptcy (this is called an income payments agreement) or if any of his assets are sold for the benefit of the bankruptcy, you may get a small contribution back from the Official Reciever.

As the others have already mentioned, you would still be liable for the actual loan. If you feel that you might be unable to meet the contractual instalments there are options out there to help you manage the debt by paying a reduced instalment each month. We can give further information on those if you need.

Do investigate child maintenance as the others have said too.

Best wishes,

David @ NDL.