Bankruptcy Advice please???

LookingforAdvice99

thank you for your views.

Is there a possibility of us paying his loan off to put a line through this?

It will not ultimately resolve the gambling problem the father has but at least the money borrowed will be paid back.

That way the house will not come into the picture, it will prevent it from being sold to fund the loan or get a someone else to buy a share in the property which I don't think is a good idea.

If we could get him to atleast agree to sign his share to his wife would make a sole owner but I don't think he wants that either

End of the day it is his house, and he can do what he wants so we may just stay completely out of it from now.

Because of this it has affected him seeing his grandchildren which is a real shame.

At this rate he sees to lose everything which is completely selfless and all we're trying to do is help him. We're almost giving our whole arm rather than just a hand to get him out a situation which could have been prevented and will just continue to spiral and cause more grief later in life for his wife.

Brock_and_Roll

You and your wife are free to pay off his debts.....but this would be very dangerous unless there were proper legal steps to stop further debts being created.

Without that, and with your FIL's gambling problems he might simply see if as a "get out of debt free" card and then would be free to start finding ways to borrow against his asset again.

IMHO no solution will work unless he is prepared to a) sign over his share in the property b) ensure that your MIL's will is changed so that your FIL is not a beneficiary *

* Legal advice MUST be sought when doing this to avoid him having a valid claim under Provision for Dependents legislation - I have painful experience of this!

TheGardener

You are right - it is his to gamble away if he wants to. I would strongly advise against 'bailing him out' even if it is to benefit Mum. The reality is an addict will not thank you nor feel under any obligation to you - you would be throwing good money (you can probably ill afford) after bad. You would be better off 'gifting' that money to the Mum to stash away out of his reach for the rainy day that will inevitably come when FiL gets to the bottom of the asset barrel and the house is claimed by his creditors anyway. As the previous poster says - get legal advice before its too late.

LookingforAdvice99

Bailing him out is what we previously tried to do and he just fed us a some more lies.

He hasn't changed even though we have tried to show support him and get him to try and get to "grips" with what he is doing to us all.

Right now I think the MIL wants to stay exactly where she has lived since the 1930's. We are a 10 min drive from their house so the MIF isn't far at all from us.

I more inclined to getting this resolved by his daughter (my wife) has washed her hand with him and all his lies which puts extra pressure on the MIL.

The daughter has told her mother she will support whatever decision her mother makes even if she divorce's him but personally the MIL doesn't want to leave the FIL in a gutter.
Obviously the MIL wants to leave her share of the house to her daughter and her kids and I think we need to legally get something in place in which we can secure her share is inherited by her daughter.

I remember the MIL/FIL putting the house on the market last year so they could pay back his loan and find a smaller property to live in but by doing so, the FIL would have access to his share in cash (after loans are paid) to go and continue what he has been doing. So the one person who wins here is him.

Its a bad situation and the gambling machines have just got hold of him

LookingforAdvice99

I should have added the reason for filing for bankruptcy is because the loans he took out were for the online business he had set up. I think the only way he was able to get the money in the first place from the banks was through a business account. So I would assume by declaring the business bankrupt he avoids paying anything back.