Considering bankruptcy, getting divorced

msparker · 15 January 2019 at 10:33PM

Hi
28 years old and considering bankruptcy. My ex walked out last May and left me with 90% of the debt as stupidly I put it all in my name. My house has been on the market since September with no joy and I owe around 25k+ to various creditors including mortgage arrears. The house is on the market for 90k and I owe 47k on the mortgage.

The mortgage is solely in my name however my ex has 'beneficial interest ' in the property as we were married. We have a six year old daughter, I am currently pregnant.
I sold my business in November as it was only 18 months old and I was getting deeper in to debt continuing to trade, when I started the business I had a loan in my mother's name as I couldn't get credit. I paid this from the sale of the business and various other debts racked up due to earning bare minimum.

I am now employed 30 hours per week however I am considering dropping my hours as I am struggling to manage due to feeling constantly down with the situation and feeling like I'm letting my daughter down.
Please can anyone advise the best route to take, I can't busy my head in the sand much longer.

Clouds88 · 18 January 2019 at 12:06AM

Hello,

I am no expert but didn’t want to read and run. Firstly, if you are selling your house and thinking of renting I don’t think you will need to go bankrupt as you will get roughly 40,000 back from the house before the fees ect. Your total debt is £25,000 is that right?

In regards to the beneficial interest, how long were you together, did he contribute to the mortgage, is he even asking for any money from the sale? I’m not sure how that would work but surely it would all belong to you if you aren’t going bankrupt maybe ask on the housing board.

If you do decide bankruptcy then there will be lots of fees added on for the official receiver who deals with it as they take a cut and you can end up paying money towards your creditors still in a form of an IPA if you have money left over. Maybe complete a SOA on the debt forum and list your creditors and see what help people suggest first. Getting help is the first step to getting out of all of this, I hope it goes well for you.

Craig1981 · 18 January 2019 at 7:08AM

if your equity in the sale doesnt clear all your debt, it should at least bring it down to well under £20k to a manageable debt. if it is not manageable, if under £20k, you can do a debt relief order instead. either way, if you still have debt at the end, speak to Stepchange, CAB, National Debtline, Payplan - all charitable organisations that will not charge you for any debt advice they provide

i dont know the ins and outs of the beneficial interest side of things, hopefully someone will be along to answer that side

PrettyKittyKat · 18 January 2019 at 10:33PM

What agreement have you made with your ex regarding how much of the equity he will get once it is sold?

msparker · 20 January 2019 at 11:25AM

He's asking for 50%. We were together 10 years, married 5. I don't know if I can keep people off my back long enough for the house to sell.

maxmycardagain · 20 January 2019 at 12:19PM

*thinks"

Doesnt an AP have a legal duty to a) pay maintenance and b) keep a roof over a childs head till they are 16?

Is the CSA on his case?

maxmycardagain · 20 January 2019 at 12:21PM

Craig1981 wrote: »

if under £20k, you can do a debt relief order instead. either way, if you still have debt at the end,

Surely after a year a DRO (in effect) wipes all debts if her circumstances remain unaltered?

John_G_Jones · 20 January 2019 at 2:11PM

maxmycardagain wrote: »

*thinks"

Doesnt an AP have a legal duty to a) pay maintenance and b) keep a roof over a childs head till they are 16?

Is the CSA on his case?

The OP has not said who has custody.

OP, is your new partner able to help? I know it takes all sorts, but if you are having a child together it’d be very normal to try to help each other financially too.

Edited to add, I realise it’s possible, just, that the ex is the father, but hopefully not...

sourcrates · 20 January 2019 at 3:00PM

Hi,

Lets not be too hasty here, although you will have to play this at whatever speed the mortgage company move at, the longer you can keep them at bay the better.

I don`t think Bankrupcy is right for you as things stand, you really need the house to sell, pay off the ex, then pay down your debts till they are under 20k, next step would be to see if a debt relief order (DRO) would be appropriate.

That will wipe out the remainder of your debt, and would leave you free to start again, although a DRO is a form of insolvency, its not as bad as having a bankrupcy on your file.

msparker · 20 January 2019 at 7:18PM

He pays maintenance, £150 per month but nothing more. Because I have a new partner he can make me sell according to my solicitor.

Considering bankruptcy, getting divorced

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