My ex-husband and I have an outstanding debt on our home of £82k which we voluntarily surrendered. He has now declared himself bankrupt and I''ve been informed that the debt is now solely my responsibility.
I''ve tried seeking advice but have been advised that bankruptcy is my best option but I really don''t want to do this. I have a payment arrangement with the mortgage company which I meet (with difficulty) but they now tell me that they want more money as they know that I make payments to other debtors. They suggested speaking to a debt management company to come up with a plan which in itself will affect my credit history which is why they advised I should just file for bankruptcy.
Has anyone been in a similar situation or can advise if there are any other options available to me?
You have obviously had advice.
Bankruptcy, whatever you think about it, is one legal way of dealing with the situation that arises when your debts exceed your assets.
It is of critical importance that the implications of bankruptcy are spelled out before you make a voluntary decision to go bankrupt. In most cases the issue is how much you stand to lose ; but there are rare instances where bankruptcy can affect your employment.
However it is one way of dealing with the situation that arises when your liabilities exceed your assets. If you go bankrupt your credit rating lies in tatters and there will be restrictions on getting credit.
Can I ask if the former marital home has been sold, and if not, does the trustee have any plans to sell it ? For technical reasons, the trustee will usually wait one year before selling. But if there is no equity - what''s the point anyway ?
Did they talk to you about an IVA ?
Thanks for your reply LMM.
Yes, I have sought advice and the advice was bankruptcy which as I mentioned is something I really want to avoid. I work full-time and have a monthly arrangement in place to the mortgage company which is paying off the shortfall (£120 against the £80k!!) The problem is they are now asking for more and I really can''t afford it. They have said that they can accept a settlement payment but will not tell me what they deem acceptable (even roughly) as they do not want me to aim for a figure of they can get more out of me.
I don''t know what an IVA is?
The house has been sold for £70k less than we paid for it. I had originally remained in the house with the children but my ex is violent and was charged with assaulting me. It became impossible for me to remain there and he decided that he wanted to move back in with lodgers (friends). We made an arrangement through the solicitors that he would live there and pay mortgage and I would not receive any child maintenance. He then stopped paying the mortgage. I was living in private rented accommodation and could not afford to pay for that house too although I did set up an arrangement with the mortgage company as soon as I could. My ex took my car and sold it and took everything of value from the house. I''ve lost everything already and trying to rebuild has been extremely hard and it feels like its all for nothing, I''m never going to get anywhere!
An IVA stands, I think, for Individual Voluntary arrangement or something like that.
What it means is that if, say, you reached an agreement with your creditors that you would make payments of £x over 5 years ( say ) after which, assuming you made the payments, you would be discharged for further payments, that agreement would legally not hold water for technical reasons I will not bore you with.
To be enforceable you have to make a formal agreement under the supervision of a licenced insolvency practicioner ( LIP ) and to be honest I haven;t much experienced of them because the kind of debt advising I did was largely to help people whose debt problems were, shall we say, less acute.
The expression '' time orders '' come to mind too. I''d have to look that up but I don''t think it would work with a mortgage. To be honest,you need someone who can explain the pros and cons. The larger CAB''s, which you''d find in towns and cities of any size, sometimes employ ( and I mean employ ) specialists who deal with serious debt and do nothing else.
If you can find one you might try to get an appointment, but I think you might have quite a wait these days, I''m afraid.
Your situation is very similar to mine. I had a house which I had to give up, I lived with Lodgers to cover the mortgage. And in the end I had to go bankrupt.
I am sure my ex wife is in the same situation as you. For my part I wished she had discussed things with me rather than just pulling the rug from under it all. I would have been happy to sort something out. Houses are always worth holding on to for future income and for the children. Some people just don''t see it that way.
I would suggest bankrupcy, at least then you''ll be on the road to ending this nightmare. As a bankrupt you are seen as debt free and some lenders like that. After the initial 12 months you are discharged and then you can start to rebuild.
I''m not sure about claiming CSA when someone is bankrupt. Te whole point of being BR is that they don''t have that sort of money.
You will have to pay anything about £20 a month disposable income and also your employer will be given NT tax code as your tax and NI is also taken from you (I believe) I can''t say for sure i''m not working at the moment so I haven''t had any taken so far.
It''s £700 to go bankrupt and can be done in a few hours with a trip to the local county court.
I am not sure if you would then have to put your solicitor as a creditor because when bankrupt you are not allowed to make any " preferential payments" to anyone - not even relatives. If you do and they are found out the Official Receiver will claw them back.
If you want/need any questions answered on bankruptcy you are welcome to PM me. I''m in one right now and I have become quite up to date with the processes laws and procedures.