Financial Abuse: Can A Wife Declare Her Idiot Husband Bankrupt?

drewdall

My son-in-law, while not having direct access to my daughter's Paypal account, nevertheless abused it by making fraudulent payments into it, to the tune of £12,000. Chargebacks were subsequently applied, Paypal assumed the debt and blocked the account, preventing my daughter from conducting her very tiny online business. Paypal are pursuing my daughter for the debt, while son-in-law refuses to help and, actually, continues to irresponsibly incur debt elsewhere.

Having separated as a result of years of this kind of financial abuse, she is left with nothing. Son-in-law, being pretty much inept at everything, will always be hopeless, but here's the thing: He is expected to receive compensation as a result of injuries sustained in a car accident, which could well be tens of thousands of pounds.

My question is this: Is it possible for my daughter to declare her husband bankrupt and thus get the courts to take control of this compensation when it is paid?

If this course of action is not feasible, does anyone have any good advice?

Many thanks, in advance, for your time and attention.

peachyprice

Does he personally owe her over £5000 that she can document and that he is refusing to pay back? She can't bankrupt him for the Paypal debt as it's legally her debt and she would bear some responsibility for not preventing his fraud at the very onset.

As for his compensation, they can take any money for loss of earnings but not anythig he is awarded for pain and suffering.

She will have to bear in mind that she will not get all her money back, she will join the queue with the rest of her creditors and will get a small percentage after the official receiver has taken their fees, depending on how much of his compensation they can take and how much his other debts amount to she could receive very little.

milliemonster

She'd only be able to make him bankrupt if he owes her a significant debt and can evidence that (as the paypal debt is in her name this wouldn't count), if he has other debts aswell then IF and its a big if, the compensation was taken from him following bankruptcy then it would be used firstly to pay fees for managing the bankruptcy and anything left over would be distributed to creditors which in reality would be pence.

Valli

If they are still married and your sil is racking up debt this could cause further problems for your daughter down the line.
My advice would be that she sees a solicitor to ascertain what her situation would be, many offer a free half hour initial interview. She could have different questions for different solicitors.
She may also have an entitlement to some of the compensation as part of the settlement, but check with a solicitor.

drewdall

All input gladly appreciated. These are just initial ideas, but I'm inclined to think she is stuck with it. Thank you.

paddy's_mum

In her shoes, I would be getting a divorce as soon as humanly possible since all the time they are legally linked, he could be doing more damage to her.

It has been my experience that people like him do not change, and all the tears, words of regret and the promises that I've-learned-my-lesson mean less than nothing.

The money it takes her to get shot of him might be the single best investment she ever makes in her life.

I'm sorry for her trouble.

antrobus

drewdall wrote: »

...My question is this: Is it possible for my daughter to declare her husband bankrupt and thus get the courts to take control of this compensation when it is paid?...
....

Daughter should divorce her idiot husband. The court can then determine what should happen to the compensation; as in that marital asset should be used to repay the marital (Paypal) debt.

Tigsteroonie

Get her to see a solicitor regarding divorce and a consent order. Financial misconduct is one of the rare times when the 50/50 starting point is not appropriate - c.f. Financial Remedies Handbook (previously known as the Ancillary Relief & Financial Orders Handbook by Roger Bird and Andy King)

AnnieO1234

If not divorced she will be responsible for the debt with her husband. More importantly husband may put the monies into a personal injury trust which would remove it from any divorce proceeding. He would need two trustees to manage the trust for him, and a willing solicitor to set it up. It would be named "The son in law personal injury trust limited" and is a perfectly legitimate investment vehicle. It also ring fences funds from benefits agency etc.

If they're still together they need to talk about how to deal with their joint debt; if they're not together then your daughter needs to tread carefully and maybe bide her time until the PI payment is made.

Do they own their own home?

Xxx

tattycath

If they are separated can't she disassociate her finances from his legally?

peachyprice

tattycath wrote: »

If they are separated can't she disassociate her finances from his legally?

Only if she doesn't have any joint accounts/debts/mortgage with him still.