Bankruptcy...I don't know where to turn

Bendigo1865 · 17 June 2019 at 9:08AM

Hi all,

I've dropped a huge clanger and don't know where to turn. My wife and I split 5 years ago and I left her the house, but didn't get around to transferring it in to her name solely.
I racked up debts of £8000 and, stupidly, without advice went bankrupt.
Because we're 3 years down the line the trustees want my share of the equity...£25 000.
This means my ex-wife selling and moving with our two children as we can't raise the money any other way.
I've tried to put a positive slant on it and said if she moves it will free equity for her to clear her debts and that rented accomodation will be beneficial for her but it's a nightmare.
I've even asked if I can get the £8000 debts back and contact them all myself to pay them off.
They said I can't.

I know I'm stupid and know I did the wrong thing but I wanted a new start for me and to let her and the kids have the house.

It's making me ill and not want to be around. I don't know where to turn.

Bendigo1865 · 17 June 2019 at 9:15AM

Also, as it's nearly 3 years the Trustees say the house will soon be re-vested to us.
I don't know what that means.

WhenIam64 · 17 June 2019 at 9:45AM

Numbers don't match here.

If your debt in Bankruptcy was £8K and your share of the equity is £25K, what is the difference?

Bendigo1865 · 17 June 2019 at 10:07AM

It the fees, court fees, the trustees fees etc

MEM62 · 17 June 2019 at 11:10AM

Bendigo1865 wrote: »

Hi all,

I've dropped a huge clanger and don't know where to turn. My wife and I split 5 years ago and I left her the house, but didn't get around to transferring it in to her name solely.
Was this documented as part of your divorce settlement?
I racked up debts of £8000 and, stupidly, without advice went bankrupt.
No advice? Oh dear..... And £8K is a very small amount to declare bankruptcy for considering the long term consequences.
Because we're 3 years down the line the trustees want my share of the equity...£25 000.
If you still legally have an interest in the house, this is legitimate.
This means my ex-wife selling and moving with our two children as we can't raise the money any other way.
I've tried to put a positive slant on it and said if she moves it will free equity for her to clear her debts and that rented accomodation will be beneficial for her but it's a nightmare.
I think that trying to convince your ex that renting is better might only inflame the situation further. All she, quite rightly, will see is that your actions may deprive her and you children of their home.
I've even asked if I can get the £8000 debts back and contact them all myself to pay them off.
They said I can't.

I know I'm stupid and know I did the wrong thing but I wanted a new start for me and to let her and the kids have the house.
Hey, we all make mistakes.

It's making me ill and not want to be around. I don't know where to turn.
Well firstly, don't do anything silly. If you are having dark thoughts get some help. You need to work the problem. And even if you were not around your ex and kids still have to face the problems. I would suggest that the least you owe them is facing it with them.

There may be some hope.

If the house transfer was documented as part of your divorce settlement this may put it out of the reach of the OR is you can provide evidence that you do not have a beneficial interest.

Also, the equity is not a million miles away from the point where it is not worth the OR pursuing it. The OR will have to value it as a distressed sale meaning that they will have additional costs and achieve a lower price. Get your own valuations as you may be able to persuade the OR that there is nothing in it for them.

Work the problem, that needs to be your focus. And take some advice this time instead of going solo. The support will make this and emotionally easier journey and an expert may be able to give you other options.

Bendigo1865 · 17 June 2019 at 11:21AM

Hi, thanks for your reply. We're not divorced yet so there is no agreement in writing.
We've offered to pay the OR £300 pcm to pay it off but they declined it as it would take nearly 7 years to pay off.
Basically, do I need to get low valuations of the house? Is that what you're implying?
I'm such an idiot. I did this with good intentions and managed to spectacularly balls things up.

MEM62 · 17 June 2019 at 1:29PM

You really need to get professional advice and support. A forum is great for guidance but you need something better than that. Speak with the CAB and/or one of the debt charities.

One of my points was, who said that there is £25k of equity in the house? Get you own valuations from an couple of estate agents first to see if this is actually correct.

Bendigo1865 · 17 June 2019 at 1:41PM

There's £50k equity in the house and the OR want £25k from me.
Thanks for your replies.

MEM62 · 17 June 2019 at 3:12PM

Bendigo1865 wrote: »

There's £50k equity in the house

Says who? .

Bendigo1865 · 17 June 2019 at 3:19PM

It's been valued already.

Kentish_Dave · 18 June 2019 at 6:20AM

Bendigo1865 wrote: »

Hi, thanks for your reply. We're not divorced yet so there is no agreement in writing.
We've offered to pay the OR £300 pcm to pay it off but they declined it as it would take nearly 7 years to pay off.
Basically, do I need to get low valuations of the house? Is that what you're implying?
I'm such an idiot. I did this with good intentions and managed to spectacularly balls things up.

The OR will be well aware of the shenanigans that people play in trying to down-value the house, so I’d not advise “trying” to get a low valuation unless you want to risk more problems with the OR.

As above, don’t do anything stupid here. If you are, as you suggest, having suicidal thoughts then please seek help straight away, today.

From what you’ve said, yes, you are at risk of losing your house. Be honest with your wife, be honest with the OR, and be honest with yourself about how you ended up here. You are where you are now, you cannot undo the last so think to yourself what the best route is going forwards. Can you take on a second job, can your wife take out a loan to buy your share of the equity?

Bankruptcy...I don't know where to turn

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