My husband left me and our two children only six weeks ago. He advised he wanted to get his own place so that he could have space etc. He has since moved into his sister''s house. We have a few debts between us, a few in my name, an overdraft and loan which is in both names and then a 10k loan which is in his name. He seems to be of the opinion that he is unable to afford a flat on a salary of just under 1600 every four weeks. I have only asked him for the bog standard maintenance that by law I''m entitled to have for the children. I have also offered to take on all the debt apart from the joint loan (3.5k) and the 10k loan which I have agreed to pay half of these. I have worked out that I am able to keep and afford the marital home (my solicitor has told me that the court will order for my husband to keep his name on the mortgage if I am unable to take it on myself) and that my husband after all of his outgoings including half the payment for the 10k loan and the 3.5k loan, food, diesel, cigarettes, insurance etc that he is going to be left with 237 every four weeks. Since I advised my husband that I have been advised that I do not need to sell the house, he has since threatened to go bankrupt on the 10k loan, the 3.5k loan and the overdraft which is 4k (but I have said that I will take this debt on). He has also filed for a divorce already on the grounds of unreasonable behaviour which I do think is quite hasty considering he has not yet even got his own place to do his so called thinking! Our house is worth 110k and should it be sold early, our mortgage provider will charge us just under 4k for the early repayment fee as we have just entered a deal so really there is only 13k equity in the house. The insolvence service have told me that should my husband be granted bankruptcy that the creditors will come after me for the joint debts which I am paying anyway and can afford the 3.5k loan by myself if I have to pay all of it. They have also advised that because his half of the equity would not be enough to cover his debt and because me and the children are living in it the OR will not be able to touch the house for just under two years and also may not be interested in the house due to the circumstances of the separation etc. My husband has advised me that if he goes bankrupt that our mortgage provider will possess our house automatically as his name will be taken off the mortgage. Can anybody explain a little more to me about this. My brother has offered to stand as guarantor but is unable to do this just yet as he has only been in his new job for about 5 weeks now. (he owns his own home).
If he files for bankruptcy will the judge turn him down given the fact that it is plainly obvious that he can pay his loan and also the joint debts, including the mortgage are not in arrears because I have been paying them. Can I get my solicitor to provide a letter to the judge he is before to advise of the current situation and that it is plainly obvious that he is doing this to get his name off the mortgage?
Really sorry that you are in this mess.It all seems very complicated and is not something I would attempt to answer.I think it may be helpful to you to get some advice for Debt Advisors as to what you can do to protect your home? I believe the CAB can be useful for this .Hopefully a more knowledgeable Wiki can give you more help soon.
I see you have a solicitor, so I am not quite sure why you feel it necessary to go on to a forum like wiki ; nevertheless, if there is a strong chance that your husband will declare himself bankrupt within the near future, and if he does, any property adjustment order made after the bankruptcy Petition will be void.
In some cases therefore it can be crucial for a divorcing spouse to get a financial order as soon as possible. But in your case the amounts involved are only small, and going for a financial order seems to me perhaps disproportionately expensive having regard to the small sums involved, to say nothing of the risk that a bankruptcy order might be made before you had a chance to get your order.
As regards joint debts, these, as your solicitor will explain, will in all probability be joint and several, which in plain English means that creditor can sue either of you or both, for any sum up to the full amount. The chances are, I guess, that that is what they might well do.
For techn ical reasons which I will not try and explain, a trustee will usually wait 12 months before applying for an order for sale. After that he could apply to the Court at any time and your prospects of defending such an action are, frankly, very poor. It is of course possible the trustee may delay a sale more than one year for no better reason than that it would produce no monay for the creditors.
If for argument''s sake the property were sold, whether by you or by the trustee or mortgagee. then as I see it the mortgage ends, simply because the security has gone. But it could and probably would, leave you and your husband with residual debt.
The reality of the situation, however, is that both of you must be allowed sufficient to live on. Your debt repayments could not ( or certainly should not ) be set at a figure which does not leave you enough to support yourself and the children.
I think you might usefully discuss with your solicitor the pros and cons of selling the property now on a voluntary basis, or stay put and risk an action for re-possession. The risk involved in this, as I see it, is that long experience teaches me that (a) the costs involved in re-possession can be disproprtionately high, with penalties, admin fees and legal costs for repossession and (b) the lender, if selling the property, will not exert himself too much to get the best price. I have just come back from America and just now you can buy a '' repo '' ( repossessed property ) for a pittance.
I would also strongly advise you to review your benefits, especially tax credits, as a matter of urgency. The fact that you are separated may well entitle you to an increase.
A few thoughts for you but of course you must take your lawyer#s advice.