Bankruptcy and Divorce

Miva Diva · Joined: 03 Jul 2007 Posts: 2 Location: wallingford oxon

Can anyone help me?

I am currently going through an unfriendly divorce and have been in a position to take on the mortgage on the former matrimonial home. I have two children.

My ex to stop me doing this has just made himself bankrupt to his father. He has done this to spite me, in order that I should now have to sell our home and pay off his so called debts to his rich and powerful father.

This seems ridiculous and an obvious deliberate way to make me sell our home as I am told that the Official Receivers now own half my house.

What can I do?

He is also saying that as a result of his bankruptcy he will no longer be able to paying anything towards his children.

Help????

John · Posted: Thu Jul 05, 2007 8:58 am Post subject:

Hello.

I would like to find a solution to your situation, but unfortunately I cannot as the situation sounds extremely complex and I would need more information from you. You should take legal advice.

With regards to the Official Receiver/Trustee, they should inform you at every stage what's going to happen and why.

If you are not receiving child maintenance then again you must seek advice on this. Your ex husband has an ethical role to play here and it would not be fair on you if he is not contributing. If he is now a bankrupt that does not mean he can take leave of his role as a father, so please seek advice from a legal professional. Try your local Citizens’ Advice Bureau. You may also be entitled to further tax credits in your circumstances. It is your right to apply for these.

If you would like to call me on 0161 244 5433, ask for John, I may be able to assist you further.

Best of luck

Steven · ClearDebt Advisor Joined: 04 Dec 2006 Posts: 3

Firstly some good news, under Rule 12.3 of the Insolvency Rules 1986 maintenance payments made in accordance with the Child Support Act are excluded from bankruptcy. Therefore your ex husband should not be withholding any agreed maintenance payments.

Now the bad, as your ex has just made himself bankrupt his share of the equity in the property vests with the Trustee in Bankruptcy, you can find out who is the Trustee by searching individual insolvency register on http://www.insolvency.gov.uk/eiir

The equity portion of your property is calculated by deducting the mortgage and any other charges from the value of the property, the equity is this portion.

Your share of the equity depends on how the property is held whether this is “tenant in common” having agreed a proportion of the equity each e.g. 80:20 usually used when friends buy houses together they own a specific share of the property, or “joint beneficial interest” this is the usual way the property is held with married people whereby you both own the whole of the property. When you are made bankrupt and the property is held on a “joint beneficial interest” this severs and the equity is initially split 50:50, however this may change depending on your specific circumstances.

The Trustee in Bankruptcy will value the equity in the property and should ask if you or a third party is able to purchase his share.

If you are in a suitable financial position you should serious consider purchasing the equity from the Trustee.

In the first year of your husband’s bankruptcy you and your children have a right to stay in the property without the Trustee taking enforcement proceedings for sale and possession if you are not in a position to purchase his interest.

After the first year the Trustee can take an action but has to do this within three years of the bankruptcy otherwise the equity re-vests with your ex husband.

If there is negative equity in the property you can request the Trustee to give you a certificate that the property is of low value and exempt from bankruptcy. If this is the case then you will have to deal with your ex husband to see if he will transfer the property to your sole name.

Moving on to your allegation that your ex husband’s father is putting in fictitious claim to the bankruptcy estate – if you believe this to be the case then you should contact the Trustee advising him of the situation in order to investigate into the claim.

If I can be of any further help please do not hesitate to contact me on 0161 228 7444.

Miva Diva · Joined: 03 Jul 2007 Posts: 2 Location: wallingford oxon

Many thanks for your advice. I am still trying to take it all in. I may well contact you.