ref bancrupcy and debts transfered to me by ex partner.

supercalafrag

Please help with advice, 8 years ago i was divorced i have 2 children, my husband had a number of debts i wasnt aware of ,and between us we also had a number of debts ,credits cards, he decided a less than a month after her left to declare himself bankrupcy ,at that stage we were not yet divorced, so as i and the children could stay in the house a bankrupcy order was put on the house for his share of the equity (at that time) so as me and the children could stay in the house, as it was not my choice or decision to become bankrupt, all his own debts were also written off , but the debts that were joint in our marriage , were all transferred to me, all 23.000 of them, he is now remarried and debt free, i have been on long term incapacity for 15 years due to illness, there is very little chance of me getting back into work ,i made arrangements with the 23.000 worth of debts to pay a minimum about back monthly for the rest of my life, most of them will run for over 100 years, so as you can imagine will never be paid off in full , the bankrupcy order will most probably come into force once my children are of age and i am forced to sell the house, which is the case for one of my children this september as she is going away to uni, as of this september i will also be down in my finances by about 350.00 a month due to benefits stopping for 1 of my children, PLEASE HELP , i wont be i a position to even pay a minimal amount on my debts soon, i dont pay my morgage in full every month all i manage to pay is the interest, i just feel that if the debts could be written off altogether ,i understand the bankrupcy would still probably stand but there is no way i can possibly pay back the debts .

IF

Hi supercalafrag and welcome to the Bankruptcy (BR) Board. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if you're not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind.
Your BR could be refused if you have not sought advice.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

Please do read these threads and other threads on the BR Board, remember knowledge is power :beer:

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

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BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

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Reasons for your BR - 6.28

Charities who help with BR Fees

BR friendly home insurance thread.

CABmoney Bankruptcy Payment Order Calculator

Bankruptcy NDL Guide

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And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
IF

tigerfeet2006

How much equity is in the house?

supercalafrag

hi tiggerfeet, there is about 40.000 equity in the house , but my ex partners bancrupcy order put a charge on the house for around 18.000 8 years ago, and this is increasing by 7% ever year, so i am not sure what it might be now, anything left would hopefully be mine but out of my share of equity i still have over 23.000 in debts that had been transferred to me due to him choosing to declare bancrupcy . i really am at my wits end with all this .

alastairq

Hi.....remember, your 'share' of the equity in the property will be at least 50%.

In other words, the Receiver will only be able to 'access your ex's share, whatever that may come to? [And not, perhaps, the full 'value' of the Charge, plus interest]

If, by chance there is anything left over from your ex's share of the equity [less the amount of the Charge, plus interest]....then the balance of that share goes to your ex....you will still be left with your share [50%?}

I suggest, first, selling the house.

This will release your share of the equity.

Find somewhere nice to rent.

Use whatever you need from that equity to buy essential household living stuff.

I do not recommend trying to settle any outstanding, non-priority debts at present...otherwise the equity would disappear down a black hole. [in view of the probable..or possible..likely outcome for you, [ie bankruptcy]....it is vitally important you do NOT favour one creditor over any others..despite what the creditors want you to do. Use this fact, to effectively do little, or nothing' in their respect, eh?

However, contact an organisation like CAB, Stepchange or as IF says above. Allow them to negotiate minimum payments with creditors on your behalf.

[Usually about £1 a month each..essential should one take you to Court to seek a CCJ.....demonstrates to the Court you are 'willing to pay'....an essential item on the agenda]

Get yourself comfortable & sorted first.....[maybe use some of the equity to assist your children??]


Once settled [with, hopefully, most of that equity used for the benefit of you & yours? Did I say that?].....then consider a BAnkruptcy petition to deal with all the outstanding debts.

I say this, since from what you post,it is obvious you will have little or no chance of ever being able to re-pay those debts...thus a BR will bring closure to all your creditors.

But..since I personally have zero interest in the concerns of creditors.....a BAnkruptcy petition will allow you to make a fresh start in life.

And this, surely, is the priority objective?

longtermplanner

supercalafrag wrote: »

there is about 40.000 equity in the house , but my ex partners bancrupcy order put a charge on the house for around 18.000 8 years ago, and this is increasing by 7% ever year, so i am not sure what it might be now, anything left would hopefully be mine but out of my share of equity i still have over 23.000 in debts that had been transferred to me due to him choosing to declare bancrupcy . i really am at my wits end with all this .

This is a big problem and will take some time to sort out. Your aim is to have it sorted or made a lot of progress by end August when your child Benefit & Child Tax Credit for your oldest will be stopping. That's not immediate, but it is important you work out a plan as it may take some time to put it into action.

The first thing you should do to buy some time to do this (I am talking months here, not years) is to only make a token payment to all your unsecured debts. This is a sort of Debt Management Plan, but it's only going to be temporary, not a permanent solution. National Debtline has sample letters that you can write to your creditors here: https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/default.aspx You want the 'token Payment letter. If you phone National Debtline up about this (on Monday, they have just closed for the weekend) they will talk you through the process in more detail.

The next thing you need to do is get a couple of estate agents in to value your house. This is a vital piece of your financial situation and you have to know it. Tell the EAs that you want a realistic price for a quickish sale. (Obviously in practice you don't want to move until eldest's A levels are finished, but things won't move that quickly!)

And start looking round for somewhere to rent so you know what it will cost. When you find out, do a mock-up of what your budget would look like when you are there ignoring any debt repayments. See if you will be eligible to claim Housing Benefit, calculator here: http://www.turn2us.org.uk/benefits_search.aspx

That will hopefully put your mind at rest that you will be able to manage, so it's 'just' the debts that need sorting. I can't tell from what you have written if you might have to go bankrupt - it all depends on how much money you have after the sale of the house. If your debts are 23,000 and you have say 12,000 left after the sale and costs of rental deposit and moving, then you may well be able to settle all the debts through a 'single payment IVA'. If you only have a couple of thousand left, then bankruptcy may be a good idea.

There will be a way forward. It's not going to include this house as you can't afford the mortgage now so the house has to go. After you are renting and settled, that is the time to revisit the final debt solution.