Bankruptcy with only wife’s income

AMS21246 · 20 January 2019 at 9:40AM

Hi

A bought a business a few years ago which was subsequently liquidated. I still owe the banks some money for the purchase and also personally guaranteed a large loan to the seller
I am currently over £100’000 in debt

A tried to resurrect the business for a couple of years and ignored all debtors while trying to raise funds

I now have two CCJs and a numerous debt collection agencies chasing me. Bankruptcy is my only option.

After being unable to find work for a sufficient income (I have 3 young children) it was decided that my wife would pursue her own small business, which is doing well and able to support us.
I am a house husband and have no source of income as my wife is covering all household bills.

How would I complete the SOA ? Is my wife going to be liable for any costs of an IPA if there is surplus household income ?

Also, we have some shares which I bought a number of years from our joint savings as an investment- although these are in my name. If I transfer half of these to my wife is it going to be classed as a transfer of assets ? Technically these are hers and were just in my name as I purchased them through an online broker in my name (the value is about £4000 in total)

Any advice would be much appreciated as I will be ‘pulling the trigger’ in the next few weeks

We no longer have a joint account and my personal bank account will show no income over the last year or so.

Many thanks for your time

John_G_Jones · 20 January 2019 at 11:18AM

Do you own your house, and how much equity is in it? If so, that’s likely to go unless your wife can raise the funds to buy out your interest in it.

“Technically” the shares are yours, so yes, it would be seen as a problem if you transferred them.

AMS21246 · 20 January 2019 at 11:23AM

We do not own a house, we rent
My wife has high debts of her own and currently on a debt management plan

Could I sell the shares and use the money to pay some of our household bills ? We are in arrears with Council tax, and have a vet bill to pay after a horse was recently put down.
I also need to pay for the bankruptcy

I also own a van, worth about £900. I would like to keep this

Flyright · 20 January 2019 at 12:10PM

The OR is unlikely to allow you to keep your vehicle as it will be a realisable asset in your bankruptcy.

maxmycardagain · 20 January 2019 at 12:13PM

Flyright wrote: »

The OR is unlikely to allow you to keep your vehicle as it will be a realisable asset in your bankruptcy.

Collection and disposal costs would eat up £400 so not worth taking

maxmycardagain · 20 January 2019 at 12:15PM

AMS21246 wrote: »

Hi

A bought a business a few years ago which was subsequently liquidated. I still owe the banks some money for the purchase and also personally guaranteed a large loan to the seller
I am currently over £100’000 in debt

A tried to resurrect the business for a couple of years and ignored all debtors while trying to raise funds

I now have two CCJs and a numerous debt collection agencies chasing me. Bankruptcy is my only option.

After being unable to find work for a sufficient income (I have 3 young children) it was decided that my wife would pursue her own small business, which is doing well and able to support us.
I am a house husband and have no source of income as my wife is covering all household bills.

How would I complete the SOA ? Is my wife going to be liable for any costs of an IPA if there is surplus household income ?

Also, we have some shares which I bought a number of years from our joint savings as an investment- although these are in my name. If I transfer half of these to my wife is it going to be classed as a transfer of assets ? Technically these are hers and were just in my name as I purchased them through an online broker in my name (the value is about £4000 in total)

Any advice would be much appreciated as I will be ‘pulling the trigger’ in the next few weeks

We no longer have a joint account and my personal bank account will show no income over the last year or so.

Many thanks for your time

We do not own a house, we rent
My wife has high debts of her own and currently on a debt management plan

Could I sell the shares and use the money to pay some of our household bills ? We are in arrears with Council tax, and have a vet bill to pay after a horse was recently put down.
I also need to pay for the bankruptcy

consider a double BR, wipe ALL family debts, double costs but doubly effective.

if the shares could cover the debts sell em, otherwise, like Elsa in Frozen.... Let It Go

Flyright · 20 January 2019 at 12:21PM

The OR will realise a vehicle worth £900. Seen it happen numerous times.

maxmycardagain · 20 January 2019 at 12:24PM

Flyright wrote: »

The OR will realise a vehicle worth £900. Seen it happen numerous times.

The Sheriffs wouldnt take it.....

Plus its got to be taxed and tested and 100% roadworthy to realise the £900, a figure probably based on retail rather real life or bottom book...say £700

Auction fees entry+sales commission 20%
Recovery/Collection £150

The OP is £100K in debt

and the BR will have to keep it insured on behalf of the IS till it is taken

John_G_Jones · 20 January 2019 at 1:08PM

maxmycardagain wrote: »

Collection and disposal costs would eat up £400 so not worth taking

Why not? That’s £500 towards clearing the debts.

maxmycardagain · 20 January 2019 at 2:57PM

John_G_Jones wrote: »

Why not? That’s £500 towards clearing the debts.

assuming at auction it makes anywhere near the £700

to much risk for very little return

once uninsured and SORN (if parked off road, though that may incur storage fees prior to collection) its value declines...

AMS21246 · 20 January 2019 at 3:37PM

Thanks for your thoughts guys. If push comes to shove I could ask my wife to buy the van off me.

With regards to the shares, if I sold them before BR and used the funds to clear some household debts - council tax, but oil for the property, pay vets bill and get car serviced, is this going to cause any problems.
Also with regards to the Household bills and rent, seeing as I don’t contribute anything financially, is this going to be complicated and raise issues with the OR interview?

Bankruptcy with only wife’s income

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free