Bankruptcy

HopefulRecovery

I'm ashamed to say that I committed fraud because of a gambling addiction. I have received amazing support from various people and organisations and am gamble free and putting the foundations in place to rebuild my life which is difficult with the amount of destruction I have caused and heartache to come.

I have no assets apart from half the equity in the family home (130k). The equity doesn't cover what I owe so I will be forced to go bankrupt. 

My employer has a civil claim against me so as soon as that is enforced I will either be forced and have to go bankrupt. On top of what I took 500k of interest, costs and fees have been added.  There are also around 15k of credit card debts.

I don't deserve help, support or advice but I am trying to work out a plan with my wife who is worried about being made homeless with our 5 daughters ranging between 7-21. They had no knowledge of what I was doing.

elsien

This is your starting point as far as jointly owned properties go.
https://www.thegazette.co.uk/insolvency/content/317#:~:text=If%20your%20property%20is%20jointly,interest%20of%20the%20co%2Downer.

Are you joint owners, or tenants in common?

ETA, I am presuming your 500K worth of interest and fees is a mistype?

fatbelly

So how much is the ccj?

If it's >500k I'd let the creditor take the initiative (and the fees) for bankruptcy. The creditor may not go straight for a statutory demand and, if they do, you could see if a voluntary charge would appease them.

You could also try an IVA. I doubt the major creditor would accept that but you never know

If you are declared bankrupt, the OR has 3 years to deal with the family home so nothing will happen quickly

HopefulRecovery

Thanks both for your non-judgmental answers. I am ashamed and embarrassed for what I have done but I am trying to get the best possible outcome for my family who deserve better.

We are joint owners.

I took around 194k but the with the added costs for interest, legal fees, audit fees and some other costs they are trying to get a judgement next week in excess of 670k (that's what I meant by 500k of additional costs). My employer are insured so have had no issue with the massive costs.

I am also trying to recover the funds for my employer from the gambling operator for their failings but this is a lengthy process that might be helped when the order is made.

DullGreyGuy

HopefulRecovery said:

I don't deserve help, support or advice but I am trying to work out a plan with my wife who is worried about being made homeless with our 5 daughters ranging between 7-21. They had no knowledge of what I was doing.

Almost everyone deserves help and strangers will be much less judgemental on those that admit they were in the wrong rather than try to blame others etc. 

It may help if you have specific questions?

Do you have legal representation in the court case against you? Whilst you embezzled a very significant sum the costs & interest look initially very high but it depends on the split and the timescales involved. 

fatbelly

Ok. There is obviously a process to go through and you must NOT rush into self-declared bankruptcy.

The application form is frighteningly easy. Easy to get into, not easy to get out of.

It sounds like there is a hearing next week. I hope you have someone helping you. Those fees need to be scrutinised at least.

Then again you may need legal help to challenge the firms who took the money. Your employer has six years to enforce a judgement so again no need for anyone to rush anything

HopefulRecovery

Yes, I have had a freezing order on me since last Autumn and have had a civil solicitor since then. He is a friend of a friend and has charged me a very reasonable fee which my wife and her family have been funding.

Funds were taken between 2018-2023.

We agree the amount taken but some of the costs they have applied for such as 8% interest and a consultancy firm to change their HR policies seem unreasonable but I understand from what I have done that a judge wouldn't be trying his best to help me.

I have struggled to find enough information online to find a best solution and make a plan. Before posting on here I was expecting to make myself bankrupt straight after judgement to give my family some kind of certainty of where they will be living for 12 months.

My mother-in-law (78 years old) could potentially buy out my equity but it would clear everything she has (and a bit more) but I would also assume Halifax wouldn't be able to agree to the continuation of our mortgage on just my wife's salary?

Thank you for the replies.

fatbelly

As long as Halifax keep getting their contractual monthly payment you won't be hearing anything from them.

You seem fixated on bankruptcy (stop it). It's one of several insolvency options and one of many strategies for dealing with debt.

On the earlier point, 8% is statutory interest, despite the fact they wouldn't have got that from investment. However, landing you with their costs for updating their HR policies is clearly an abuse of process.

DullGreyGuy

HopefulRecovery said:

Yes, I have had a freezing order on me since last Autumn and have had a civil solicitor since then. He is a friend of a friend and has charged me a very reasonable fee which my wife and her family have been funding.

Funds were taken between 2018-2023.

We agree the amount taken but some of the costs they have applied for such as 8% interest and a consultancy firm to change their HR policies seem unreasonable but I understand from what I have done that a judge wouldn't be trying his best to help me.

8% is statutory interest for a claim against and individual, its 8% + BoE Base Rate for a claim against companies. Both apply where there arent other documents stating a different figure (eg a contract) It is simple interest though so doesnt compound. 

HR policy changes are very ropey, hopefully your lawyer has checked their calcs and challenged the more dubious elements. You did wrong and will have to pay for it but it doesnt mean they can tag spurious elements onto it. 

HopefulRecovery

fatbelly said:

As long as Halifax keep getting their contractual monthly payment you won't be hearing anything from them.

You seem fixated on bankruptcy (stop it). It's one of several insolvency options and one of many strategies for dealing with debt.

On the earlier point, 8% is statutory interest, despite the fact they wouldn't have got that from investment. However, landing you with their costs for updating their HR policies is clearly an abuse of process.

Thank you, I think my solicitor was worried that my employer would go for a charging order over the house but he admitted he wasn't an insolvency expert and to seek advice.

RAS

If the house is jointly owned, they can only put a Form K restriction on the house. There is a LONG thread called Charging Order?-The Myth near the top of the stickies on the Debt Free Wannabee subforum that you need to read.

You will need solicitors who understand how they work/don't work if you all the house. Not easy but possible.