Should OH go bankrupt?

blakeyjo

Hi

How does a bankruptcy effect the other half if they are still living together? The mortgage is in my name - we split up over two years ago and I bought him out but he has recently moved back. He has £20k worth of debt and is currently with CCCS paying £72 per month back in a DMP.

His only other asset is his car which I can't imagine being worth much. At the moment he is giving me the majority of his money for the bills (but even that doesn't cover all of his share). We've got two children, one in full time child care, which is costing a fortune so things will get better when she starts school in two years time.

CCCS first recomended he went bankrupt but he wasn't keen on the idea but is now stressing about everything and is getting depressed about how long it's going to take to pay everything off.

If he went bankrupt will my expenditure be taken into account? Will it be my statements they need to see for the bills? Could they get me to sell the house as he used to have his name on the mortgage and is now paying towards it?

Many thanks x

plumduff-2

Hi, I really feel you need to see an Insolvency Practitioner about this matter..

In your situation you need professional advice.. Look in your yellow pages for a Local IP and one who does a free intial interview..

To be honest, Im not sure it is an aption for him..

The OR could look at the property issue like this: He ran up debts, the property was transferred into your name only... he was given a lump sum payment which went where...? The OR may think the whole situation was contrived to deprive his creditors of his asset - the house..

Dont file for BR, until you know for definate about this, as the OR can undo transactions... which means your home could be unsafe...

blakeyjo

I only paid him £5k to buy him out as we'd remortgaged back in 2003 to - guess what - pay off our debts! But he's promptly got himself back into financial trouble after being sacked last year and was out of work for six months so lived off his credit cards. This doesn't account for all of his debt - when we split up he went through a bit of a mid life crisis and lived it up for about a year. And he felt guilty for leaving the kids so spent a lot of money on them.

Thanks for the advice - will suggest it to him. All feels a bit surreal at the moment as it's just been his problem. Hopefully it won't also become mine! I don't see why me and the kids should suffer when he got himself into trouble. x

tigerfeet2006

Hi

Your first port of call should be one of the free debt charities. I've cut and pasted this from one of our members siggy. Cheers Fermi. The house COULD be a sticking point but they will be able to tell you better what the situation could be. CCCS are highly regarded round here and 2 of their people post on these boards. When you've spoken to them (get ex to speak to them and then I suggest you also have a chat with them to get a handle on where you stand) then come back and we will be able to offer support and advice.

Professional, free and impartial advice on debt problems can be obtained from several charitable and 'not for profit' organisations. They never make a penny from the advice they give, which means it will be given with only your best interests at heart. You can contact:

Your local CAB Office and ask to speak to a 'money advisor'.*** The Consumer Credit Counselling Service (CCCS) - Tel: 0800 138 1111 *** National Debtline - Tel: 0800 808 4000 *** Payplan - Tel: 0800 917 7823

debt_doctor

The OR can go back 5 years and has the power to ' undo' previous transactions that deprive the bankrupt of an assett. If anyone receives less than their fair share of a sold assett that is called ' transaction at undervalue'. Expert advice needed for BOTH of you.

The insolvency service helpline is useful, or c.a.b but you would need to be reffered to specialist money advice or FIF worker.

Best wishes.

plumduff-2

I really wouldnt recommend CAB help with this, I think it is above their remit and they may only signpost you ont an IP anyway... I used to work at a CAB and we were always told with serious and complicated issues like this to refer on to an IP... The consequences are too high not to...

However, CCCS may be able to help... but an IP really is the preson for the job... They are Insolvency specialists so know this area better than anyone..

Most good firms do free initial interviews.. x

debt_doctor

Thats a bit scary Plum ! - im a debt case worker at the cab and falls well within my remit, although as I said specialist advice is needed, beyond the scope of the front line volunteer / !!! system, but specialist money advice should be available to all bureaux

debt_doctor

hi where it says volunteer/ !!! system the 3 abreiviations blanked out by the message board where for Advice Session Supervisor, apparently you cant say !!! here !!!!!!!!!!

betterlatethannever

:rotfl: :rotfl:

Richard_S

plumduff-2 wrote: »

I really wouldnt recommend CAB help with this, I think it is above their remit and they may only signpost you ont an IP anyway... I used to work at a CAB and we were always told with serious and complicated issues like this to refer on to an IP... The consequences are too high not to...

However, CCCS may be able to help... but an IP really is the preson for the job... They are Insolvency specialists so know this area better than anyone..

Most good firms do free initial interviews.. x

plumduff,

You are a knowledgeable person but I am very suspicious of the way "IP" appears in virtually every paragraph of your posts. Brin from "Debt Help UK" offers lots of solid advice and you regularly signpost people in that direction; is it just me?

We were petitioned for bankruptcy by a third party; it was a complicated case and we consulted with one solicitor specialising in insolvency and two IP's. The solicitor was superb, one IP was helpful and the second was a completely useless piece of sh1te.

With the benefit of hindsight, unless a case is very complicated there's absolutely no point in wasting money with IP's; they have to make a profit to survive and profits come from fees. 99% of the time the difference between an IP and an IVA can only be measured in atoms.

plumduff-2

Crikey, I think I should keep my gob shut... :-)

1. debt doctor - yu are right, if someone goes to CAB and sees the debt caseworker they will get the advice require, but all to often the debt caseworker is snowed under and there is a long wiating period, made even worse for them due to the fantastic LSC contracts you lot usually work under..

2. Richard-s.. I do mention brin a lot.. he is a qualified IP and provides a lot of free advice on t'other site for which a lot of people are thankful..

However I have also recommened Grant Thorntons, who debt DR may be familiar with as they provide quite a lot of training for debt advice caseworkers adn also do free initial interviews.. I would never recommend paying for advice when there is so much good free advice out there...

However, your point has been noted and I shall not mention brin again.... why promote the free use of an IP if it gets up your nose...!