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  • FIRST POST
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 8:08 AM
    • 9Posts
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    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 1
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 8:15 AM
    • 9 Posts
    • 0 Thanks
    Bendigo1865
    • #2
    • 17th Jun 19, 8:15 AM
    • #2
    • 17th Jun 19, 8:15 AM
    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
    • By WhenIam64 17th Jun 19, 8:45 AM
    • 541 Posts
    • 299 Thanks
    WhenIam64
    • #3
    • 17th Jun 19, 8:45 AM
    • #3
    • 17th Jun 19, 8:45 AM
    Numbers don't match here.

    If your debt in Bankruptcy was £8K and your share of the equity is £25K, what is the difference?
    Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 9:07 AM
    • 9 Posts
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    Bendigo1865
    • #4
    • 17th Jun 19, 9:07 AM
    • #4
    • 17th Jun 19, 9:07 AM
    It the fees, court fees, the trustees fees etc
    • MEM62
    • By MEM62 17th Jun 19, 10:10 AM
    • 2,516 Posts
    • 2,166 Thanks
    MEM62
    • #5
    • 17th Jun 19, 10:10 AM
    • #5
    • 17th Jun 19, 10:10 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.
    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.
    Originally posted by Bendigo1865
    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.
    Last edited by MEM62; 17-06-2019 at 10:12 AM.
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 10:21 AM
    • 9 Posts
    • 0 Thanks
    Bendigo1865
    • #6
    • 17th Jun 19, 10:21 AM
    • #6
    • 17th Jun 19, 10:21 AM
    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
    • By MEM62 17th Jun 19, 12:29 PM
    • 2,516 Posts
    • 2,166 Thanks
    MEM62
    • #7
    • 17th Jun 19, 12:29 PM
    • #7
    • 17th Jun 19, 12:29 PM
    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
    • By Bendigo1865 17th Jun 19, 12:41 PM
    • 9 Posts
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    Bendigo1865
    • #8
    • 17th Jun 19, 12:41 PM
    • #8
    • 17th Jun 19, 12:41 PM
    There's £50k equity in the house and the OR want £25k from me.
    Thanks for your replies.
    • MEM62
    • By MEM62 17th Jun 19, 2:12 PM
    • 2,516 Posts
    • 2,166 Thanks
    MEM62
    • #9
    • 17th Jun 19, 2:12 PM
    • #9
    • 17th Jun 19, 2:12 PM
    There's £50k equity in the house
    Originally posted by Bendigo1865

    Says who? .
    • Bendigo1865
    • By Bendigo1865 17th Jun 19, 2:19 PM
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    Bendigo1865
    It's been valued already.
    • Kentish Dave
    • By Kentish Dave 18th Jun 19, 5:20 AM
    • 431 Posts
    • 687 Thanks
    Kentish Dave
    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.
    Originally posted by Bendigo1865
    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?
    • TheGardener
    • By TheGardener 18th Jun 19, 6:42 AM
    • 2,854 Posts
    • 2,874 Thanks
    TheGardener
    Sorry you are having such a tough time of it - your situation is very difficult. I would suggest if you haven't don't so already, speak to one of the debt charities about your situation.

    Is raising the money to buy your interest (equity) back from the OR completely impossible? The OR will be open to offers - your 25K would be reduced significantly by the costs of selling the house and the time and effort involved by the OR so your ex wouldn't need to find the whole 25K.

    If finding the money is a no-go then she needs to start looking now for suitable rented accommodation. As you say, she will at least have enough to pay her own debts and a deposit + some up front rent.
    • MEM62
    • By MEM62 18th Jun 19, 8:21 AM
    • 2,516 Posts
    • 2,166 Thanks
    MEM62
    It's been valued already.
    Originally posted by Bendigo1865
    You are not answering my question. Valued by who? You? the OR?
    • Bendigo1865
    • By Bendigo1865 18th Jun 19, 9:28 AM
    • 9 Posts
    • 0 Thanks
    Bendigo1865
    The house was valued at £110k and there's £60k or so left on the mortgage.
    • TheGardener
    • By TheGardener 18th Jun 19, 10:52 AM
    • 2,854 Posts
    • 2,874 Thanks
    TheGardener
    If the inevitable is going to happen then moping about it won't help - be proactive and start talking to the OR and the Debt Charites. If your ex is in receipt of benefits 'her share' is going to have an impact on them so she also needs to start taking an active role in the situation.
    Your experience of not taking professional advice in the past should be the driver to make sure you take as much advice as possible now.
    Last edited by TheGardener; 18-06-2019 at 11:07 AM.
    • Bondi123
    • By Bondi123 18th Jun 19, 1:04 PM
    • 1 Posts
    • 0 Thanks
    Bondi123
    It might be worth your wife speaking to CAB or a debt advice charity as well. Can she claim more then 50% of the house? Was there a deposit and if so who paid it? Has she paid more of the mortgage especially over the last 3 years? Has she paid for any works or improvements to the house?
    • Bendigo1865
    • By Bendigo1865 18th Jun 19, 1:46 PM
    • 9 Posts
    • 0 Thanks
    Bendigo1865
    She's paid the mortgage for the last 5 years. I've asked if this can be deducted from the £25k but the OR mentioned a tenancy fee which would counter the deduction.
    I've messed up so badly.
    • terrence45
    • By terrence45 18th Jun 19, 1:51 PM
    • 38 Posts
    • 11 Thanks
    terrence45
    Valued by who?
    • Bendigo1865
    • By Bendigo1865 18th Jun 19, 2:45 PM
    • 9 Posts
    • 0 Thanks
    Bendigo1865
    Estate Agents. The OR arranged for 3 valuations
    • silvercar
    • By silvercar 18th Jun 19, 4:24 PM
    • 39,207 Posts
    • 163,035 Thanks
    silvercar
    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?
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