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bankruptcy- will me and my daughter lose our home?

  • trolleydolly
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03 May 12 #328157 by trolleydolly
Topic started by trolleydolly
Hi

I am wondering if someone could help.

My solicitor explained this morning that my spouse is about to declare bankruptcy due to tax and vat liabilities. There also exists child maintenance arrears of £4,000 owed to me.

He lives in the FMH, a modern, comfortable 4 bed detached house in his name, no equity.

Me and my daughter live in the jointly owned property, equity of around £40,000, a small three bed terraced house.

French property still to be valued, possibly in negative equity.

Since the birth of my daughter work part-time so income very low, buying his share of the equity would be unaffordable.

His income is still high (at least 40,000pa)and earning capacity high. He has falsely declared income on form E as £15,000, which is another issue being pursued via my solicitors.

My question is this:- are me and my daughter going to be forced out of our home on a minimal income whilst he sits pretty in the FMH?

Any answers would be much appreciated.

  • LittleMrMike
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04 May 12 #328334 by LittleMrMike
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My initial thought is that this is a real problem.

Er - but you have a solicitor, so isn''t it up to him to advise you ?

This is not the usual situation. The usual is that the spouses live together in the FMH.

Normally, if there is a danger of bankruptcy, the name of the game for the spouse is to get an order before the spouse goes bankrupt. If this is not done, any property adjustment order will be void.

Your own share in the property where you currently live should not be affected, and in practice you would be offered the chance to buy it - but if you can''t afford to, that is small comfort.

I''ve never encountered a case where the bankrupt spouse was, or should be, paying maintenance, and whether the bankrupt would be allowed enough to discharge his maintenance obligations. I suppose there must be an answer but I have never come across it. As child support is a statutory obligation, I would expect that he would have to be allowed enough to pay it, just as he would be allowed enough to pay his Council tax.

The one crumb of comfort I can offer is that, if you are forced out, you would have a very clear case to be re-housed by the local authority.

LMM

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