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What are we each entitled to in our divorce settlement?

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Bankruptcy during divorce

  • Nessie77
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05 Feb 16 #473723 by Nessie77
Topic started by Nessie77
Hi,

The story so far... Husband and I separated December 2013. He moved in with affair lady and her children. I started divorce proceedings January 2015 as finally had some money to pay for a solicitor. Decree Nisi granted September 2015. November 2015 husband informs me that he has accumulated 40k in debts in the 2 years we have been separated. He is considering bankruptcy. January 2016 just as we have agreed Consent Order and are going for Decree Absolute he decides he is filing for bankruptcy!!!
First question is do I still go for the absolute although his solicitor says he would have lied on the Consent Order?
Second question is my solicitor says that the creditors could not force me to sell the house straight away as I have 2 children. I have looked in to the matter and it says that the creditors would go for 50% of equity where as Consent Order says his share is 14%. Would I be able to argue with his creditors that I have paid the mortgage solely since we split and do not see why they should benefit from the increase in house price as the debts were all obtained after we split?

Any advice gratefully received especially from someone that has been through a similar experience.

Thanks
Nessie77

  • LittleMrMike
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06 Feb 16 #473746 by LittleMrMike
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Nessie,

I know you have a serious problem here and I would like to be as helpful as I can, but you have asked questions which are pretty technical and I understand more than most wikivorcers just how technical they are.

A bankruptcy order will vest most of your husband''s property ( it seems he is still your husband ) in the trustee in bankruptcy.

So if the property is vested in the trustee, it does not belong to him any more, and therefore is not available for distribution between the soon to be ex spouses.

I have to say, I find it almost unbelievable that a solicitor would tell you that his client was probably lying. But if, for the sake of argument, this is a true statement, then the value of an order obtained on the basis of incomplete facts is extremely dubious.

I''m sorry, Nessie, but you have a solicitor. All my instincts tell me it would be wholly unsafe for me to offer any definite advice here. You must rely on his/her advice. That''s what (s)he is paid to do.

All I am going to say is that timing can be critical and you should seek advice WITHOUT DELAY. Normally, where a husband is known to be in financial trouble, an adviser for a wife will want to get a financial order as quickly as possible.



On the issue of sale of the property, I can be a little more definite. I agree with your solicitor, It is usual for the trustee to wait 12 months before applying for an order for sale. The reasons are again technical and I won''t try to confuse you by explaining them

But the timing of an order for sale is quite a separate issue from how much each of you is entitled to. Please remember that the duty of a trustee is to realise money for the benefit of the creditors. You''re almost certainly right - they would try for at least 50%.

I wish I could be more helpful, but all my instincts tell me you need to take legal advice, and quickly.



LMM


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  • Bubblegum11
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07 Apr 16 #476554 by Bubblegum11
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I''d be interested to know what happened with your situation.
From everything I''ve read timing is everything in these sort of circumstances! How much equity is in the house and are there any charges registered against it?

My husband went bankrupt before I started divorce proceedings and the TIB took his 50% beneficial interest - I agreed to a sale, but the house was in negative equity and did not sell. I was able to buy back the beneficial interest from the TIB for a nominal amount.

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