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  • FIRST POST
    • BeccaGee
    • By BeccaGee 8th Jul 18, 8:33 PM
    • 25Posts
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    BeccaGee
    Husband bankrupt and Trustee wants to sell our house??!!!??
    • #1
    • 8th Jul 18, 8:33 PM
    Husband bankrupt and Trustee wants to sell our house??!!!?? 8th Jul 18 at 8:33 PM
    My husband was made bankrupt in October 2015 and everything was absolutely fine since then for nearly three years all is well.

    But now the trustee wants to sell our house?

    Canít I stay in it? He is bankrupt not me.
Page 2
    • iammumtoone
    • By iammumtoone 9th Jul 18, 7:37 AM
    • 5,769 Posts
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    iammumtoone
    Did you/your husband get any advise before going bankrupt?

    I don't know anything about the process but do find it slightly unbelievable that you thought you could write off debts whilst keeping hold of £100K worth of assets!

    I appreciate that you are not bankrupt but as others have advised above they are not taking your money just your husbands share.

    You will need to rent, expect in a few circumstances there are not many bankrupts who own their own home.
    • BeccaGee
    • By BeccaGee 9th Jul 18, 7:40 AM
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    BeccaGee
    I live in the south east
    • warby68
    • By warby68 9th Jul 18, 7:47 AM
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    warby68
    OP, its not about how much you can afford monthly - its about your husband's assets. He isn't allowed to go bankrupt and keep his share of £200k house equity. You don't lose your share but you can't hang onto his share. Bankruptcy is a process where assets are collected in over a certain timeframe for the benefit of creditors. You seem to be seeing it as some sort of Debt Management Plan where you can pay from income over an extended period.

    Did you really not know any of this before now? It is rather unbelievable that your husband didn't.

    £100k is still a very good start and that really is what's happening - you are starting again, because of the bankruptcy. Is there a reason you can't work and improve your finances further?
    • BeccaGee
    • By BeccaGee 9th Jul 18, 7:58 AM
    • 25 Posts
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    BeccaGee
    I am going to call the Or and Trustee first thing this morning to offer the payment plan as I!!!8217;d rather not sell my husbands half of the house.

    We didn!!!8217;t take advice, my husband was made bankrupt by the liquidator of his company for money he admitted he owed to the company but we could not pay.
    • BBH123
    • By BBH123 9th Jul 18, 7:59 AM
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    BBH123
    TBH I think this is a windup, sorry I cannot believe the OP can be so naÔve.
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    • Edi81
    • By Edi81 9th Jul 18, 8:09 AM
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    Edi81
    The trustee won!!!8217;t deal with you. They will only deal with your husband.

    I find it hard to believe that after three years you did not realise that this could happen.
    • Edi81
    • By Edi81 9th Jul 18, 8:10 AM
    • 557 Posts
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    Edi81
    I have a feeling that your husband has not been entirely truthful with you on what this meant for your home. If that is the case then I am very sorry for you.
    • iammumtoone
    • By iammumtoone 9th Jul 18, 8:15 AM
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    iammumtoone
    TBH I think this is a windup, sorry I cannot believe the OP can be so naÔve.
    Originally posted by BBH123

    I did wonder but now the OP has said her husband didn't voluntary go bankrupt he was made bankrupt, I can see how this has come about.


    OP probably didn't know what was happening at the time and then for everything to stay the same for three years must have assumed it was over, this must have come as a shock now, if this happened two or three months after the bankruptcy it might have been easier to take.
    • kazwookie
    • By kazwookie 9th Jul 18, 8:16 AM
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    kazwookie
    Where is your husband in all this?

    How much does he owe in total.?

    Your husband and you need to get proper advise over this, but I think you have left it too late.

    I suggest you start looking at rental property in your area, and get your CV up to date as you may / will need to get a job full or part time to help out.

    Is your husband working now?
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    • Browntoa
    • By Browntoa 9th Jul 18, 8:18 AM
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    Browntoa
    Afraid there's some hard truths you need to realise

    The OR is obligated to attempt to claim ANY assets to clear your husbands debts.

    He's allowed 3 years to see if your husbands finances improved and looked like he could repay the debt , but it's obvious from your post that this is not the case.

    You coming into £100,000 equity will bar you from council housing so you will need to rent privately.
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    • warby68
    • By warby68 9th Jul 18, 8:33 AM
    • 1,037 Posts
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    warby68
    I am going to call the Or and Trustee first thing this morning to offer the payment plan as I!!!8217;d rather not sell my husbands half of the house.

    We didn!!!8217;t take advice, my husband was made bankrupt by the liquidator of his company for money he admitted he owed to the company but we could not pay.
    Originally posted by BeccaGee
    The above should make the process easier to understand.

    Your husband owed money he could not pay - for him to be forcibly made bankrupt the liquidator would not have been happy with his repayment proposals (or lack of) and could still see assets in the background. The bankruptcy is a way to get to those assets. Your husband would probably have had the chance to voluntarily sell your home to realize his assets and make a payment at the time but didn't for whatever reason.

    The amount sounds quite large and if he has taken or borrowed significant sums from his company which ultimately played a major part in the company's failure, such behavior is frowned upon.

    It sounds increasingly as if you have been kept in the dark about things to be so shocked (and unrealistic) about the situation now. As others have said, what is your husband saying? I doubt you will progress very far on your own with the Trustee.
  • National Debtline
    Hi BeccaGee


    I am sorry that you appear to have been left in the dark over the process but the facts are that, as others have stated, the Trustee will now be looking to cash in your husband's share of the equity through a sale.


    I am sure the Trustee's office will be very happy to explain the process to you and what will happen and why, but negotiation is not going to be on their menu, alas.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • tacpot12
    • By tacpot12 9th Jul 18, 9:47 AM
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    tacpot12
    You might talk to the trustees about how long they might give you to sell the house so that you can get the best possible price. If you market it immediately, you will get the best price as property prices seem to be falling in some areas.

    You may well need to consider moving to the north of the UK where £100,000 will buy a small house (or a large flat). Three bedroom flats in Sheffield sell from £70,000 to upwards of £100,000. This £100K flat looks superb - I was surprised how good it was and am not surprised it has sold: https://www.rightmove.co.uk/property-for-sale/property-54980644.html

    The North had a lot going for it, and once your husbands bankrupcy is discharged you could look to move back down South if that it what you want to do.
    • threeofus
    • By threeofus 9th Jul 18, 9:58 AM
    • 103 Posts
    • 27 Thanks
    threeofus
    My ex-husband did that to me, didn't tell me he had chosen to go bankrupt, made false promises that he could save the house, lie upon lie. the sad truth s I am in the same position as you in that myself and my children could be homeless, insolvency law supersedes family law so there isn't anything you can do - like me. I too can't buy anywhere else and will likely loose everything because of what my ex decided to do - whilst he walks off debt free leaving his children destitute - it's disgraceful. I'm trying to raise the beneficial interest to enable us t stay in our home, and I too live in the SE so will struggle to buy anywhere big enough to house my children.....don't know why he isn't liable for the debt!
    • BeccaGee
    • By BeccaGee 9th Jul 18, 10:11 AM
    • 25 Posts
    • 3 Thanks
    BeccaGee
    My husband is going to call the Or and Trustee at lunch as he spoke to them originally and knows the situation better than I do. I will keep my fingers crossed !

    He was made bankrupt for a business debt and so I donít understand how a personally owned house is now involved (the house is nothing to do with his former business?) although when made bankrupt we did include our personal debts too so that was all wiped clear.
    • soolin
    • By soolin 9th Jul 18, 10:17 AM
    • 61,088 Posts
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    soolin
    My husband is going to call the Or and Trustee at lunch as he spoke to them originally and knows the situation better than I do. I will keep my fingers crossed !

    He was made bankrupt for a business debt and so I don!!!8217;t understand how a personally owned house is now involved (the house is nothing to do with his former business?) although when made bankrupt we did include our personal debts too so that was all wiped clear.
    Originally posted by BeccaGee
    Surely you have answered your own question here?

    Whilst the OR and Trustee won't talk to you, is there anyway you can be there for that call so you can listen in (obviously with permission from your husband) ? If there is any possibility that your husband either doesn't fully understand when he is told things, or is choosing not to tell you the whole truth - then hearing the discussion for yourself may be useful. Once you hear the situation first hand you can start to make plans, you might also remind your husband to ask how long you can reasonably have to try and sell the house yourself to maximise any proceeds.

    EDIT- in the highlighted bit above you used the word 'we' about the bankruptcy. You may need to clarify for the purposes of the regulars on here (not me!) that only your husband was bankrupt and that none of your debts were included.
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    • haras_nosirrah
    • By haras_nosirrah 9th Jul 18, 10:29 AM
    • 1,599 Posts
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    haras_nosirrah
    Is it possible that your husband took a directors loan from the business if he was a limited company and failed to pay the company back and went bankrupt. This would then mean the amount he took out the business is his debt not the company debt and he is therefore personally liable. How much was the bankruptcy for - is the 100k enough to clear it (including or fees)
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    • warby68
    • By warby68 9th Jul 18, 10:38 AM
    • 1,037 Posts
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    warby68
    My husband is going to call the Or and Trustee at lunch as he spoke to them originally and knows the situation better than I do. I will keep my fingers crossed !

    He was made bankrupt for a business debt and so I donít understand how a personally owned house is now involved (the house is nothing to do with his former business?) although when made bankrupt we did include our personal debts too so that was all wiped clear.
    Originally posted by BeccaGee
    From what you said he was made bankrupt for a PERSONAL debt he owed TO his business. The bankruptcy relates to his personal obligations as distinct from those of the business which would be subject to its own insolvency proceedings. As part of the company's insolvency, the liquidator was obliged to try and collect debts owed to the company and this is where your husband comes in personally. He owed his own company money. If you really do not know much, its possible he gave personal guarantees for his company's debts as well and owes money indirectly in this way. These are the ways business and personal situations start to overlap when it is a limited company.

    You keep saying 'we' and 'our' debts - are you 100% sure there are no proceedings involving you?
    • BeccaGee
    • By BeccaGee 9th Jul 18, 12:48 PM
    • 25 Posts
    • 3 Thanks
    BeccaGee
    Ah I see I will check with him.

    No it is just bin that was made bankrupt - I donít have any credit cards or loans or anything in my name. I donít work so I wouldnít get anything like that if I wanted to! Thank goodness
    • Edi81
    • By Edi81 9th Jul 18, 12:59 PM
    • 557 Posts
    • 512 Thanks
    Edi81
    Is the mortgage joint?
    Are you definitely named on the deeds of the property?

    Without wanting to pry what was the money spent on? It sounds as though your husband borrowed from a company and couldn!!!8217;t repay so where did the money go?
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