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Bankruptcy against debtor advice
FinlayS
Posts: 5 Forumite
Hello
Hope someone can help in relation to this issue.
I and other creditors are pursuing a debtor for substantial sums of money, this has been going on for over a year now.
We have applied to the courts to have the bankruptcy order made, however each time we do, the debtor states they are in the middle of a complex divorce and disputing the assests between them.
This divorce seems to be never ending with no end in sight, however when I want to take over the bankruptcy petition, I was advised by one of the creditors solicitors that
"should I make the debtor bankrupt, it would in essence mean I would deprive the creditors of the opportunity of funds being raised from the possible order made in the financial relief application in the ongoing divorce proceedings".
For the life of me, I don't understand what that means, I thought that if the debtor is made bankrupt then his trustee in bankruptcy will sort out the finances.
How does the order in divorce affect the order in bankruptcy and vice versa?
Are there genuine and compelling reasons why creditors should await the outcome of a divorce hearing being finalised before seeking bankruptcy or is it the same outcome if you press ahead and make the debtor bankrupt?
What are the pros and cons?
Thank you so much in advance for any advice.
Hope someone can help in relation to this issue.
I and other creditors are pursuing a debtor for substantial sums of money, this has been going on for over a year now.
We have applied to the courts to have the bankruptcy order made, however each time we do, the debtor states they are in the middle of a complex divorce and disputing the assests between them.
This divorce seems to be never ending with no end in sight, however when I want to take over the bankruptcy petition, I was advised by one of the creditors solicitors that
"should I make the debtor bankrupt, it would in essence mean I would deprive the creditors of the opportunity of funds being raised from the possible order made in the financial relief application in the ongoing divorce proceedings".
For the life of me, I don't understand what that means, I thought that if the debtor is made bankrupt then his trustee in bankruptcy will sort out the finances.
How does the order in divorce affect the order in bankruptcy and vice versa?
Are there genuine and compelling reasons why creditors should await the outcome of a divorce hearing being finalised before seeking bankruptcy or is it the same outcome if you press ahead and make the debtor bankrupt?
What are the pros and cons?
Thank you so much in advance for any advice.
0
Comments
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I would push the situation now unless someone gives you a compelling (and comprehendible) reason not to.
The issue with waiting is that, in a lot of divorce settlements, the couple spend a large potion of their assets in legal fees fighting each other. Strange thought it may seem most are prepared to spend thousands, or even 10's of thousands in legal fees and be far worse off post-settlement rather than allow their ex to 'get one over on them'.0 -
Debts due under divorce/family proceedings are non-provable debts and don't go in to the BR - your debtor could have a court order about disposal of assets and paying to their ex and the BR would not be able to touch it0
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