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  • FIRST POST
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 8:08 AM
    • 9Posts
    • 0Thanks
    Bendigo1865
    Bankruptcy...I don't know where to turn
    • #1
    • 17th Jun 19, 8:08 AM
    Bankruptcy...I don't know where to turn 17th Jun 19 at 8:08 AM
    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.
    Last edited by Bendigo1865; 17-06-2019 at 9:34 AM.
Page 2
    • KeepOnKnitting
    • By KeepOnKnitting 18th Jun 19, 5:53 PM
    • 234 Posts
    • 440 Thanks
    KeepOnKnitting
    If you went bankrupt over £8k, why do they want £25k from you?

    I had no assets when I went bankrupt, so I don't know how that works, but I am confused.
    Save £12k in 2019 #43
    • fatbelly
    • By fatbelly 18th Jun 19, 6:35 PM
    • 13,979 Posts
    • 11,008 Thanks
    fatbelly
    Numbers don't match here.

    If your debt in Bankruptcy was £8K and your share of the equity is £25K, what is the difference?
    Originally posted by WhenIam64
    Fees

    The fees for dealing with a property in bankruptcy can be 20-30k.

    This illustrates the folly of an 'easy-access' bankruptcy application process.

    With a DRO, you can only access it via a qualified debt adviser. The potential damage in bankruptcy is much much larger yet anyone can fill in an online form, pay the fee on a card and press the submit button.

    At least in the old system you had to talk to someone at the court.
    Last edited by fatbelly; 18-06-2019 at 6:40 PM.
    • Kentish Dave
    • By Kentish Dave 18th Jun 19, 7:33 PM
    • 431 Posts
    • 690 Thanks
    Kentish Dave
    If you went bankrupt over £8k, why do they want £25k from you?

    I had no assets when I went bankrupt, so I don't know how that works, but I am confused.
    Originally posted by KeepOnKnitting
    They donít necessarily want £25k, they want the £8k plus fees, and want to take it from the equity the OP has in the house that they earn with their wife.

    If there is any left over it will be returned.
    • Kentish Dave
    • By Kentish Dave 18th Jun 19, 7:34 PM
    • 431 Posts
    • 690 Thanks
    Kentish Dave
    Divorce settlements usually weight the equity distribution towards the parent that stays in the home with the children or alternatively gives the parent with care the right to remain in the home until the youngest child finishes education.

    What happened here?
    Originally posted by silvercar
    What divorce?
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