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Bankruptcy.


travelchic

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Hi all.

 

ex hubby dropped a bombshell on me last night. He owns his own business and he's going bankrupt!! The house we have is in joint names and I am afraid that the people he owes money to will seize all of his assets including our house. We've accepted an offer on the house. I contacted my solicitor and told her that I need the sale to be pushed through quickly because of unforeseen circumstances. Didn't want to tell her why in case she tells me she has to do something about it or act on it or something. My solicitor has the contracts drawn up and is just waiting to hear from the buyers solicitor. Does anyone know how long it will take for the contracts to be exchanged from now please. Feel really stressed. We bought this house jan 2006 and my ex moved out apr 2006. He lived there with us for 3 months. Since then it's just been the kids and me and I've paid every single mortgage payment. This is so unfair. Am I making a mountain out of a mole hill or am I worrying for good reason. Has anyone been in this situation or knows someone who has who can give me advice. I've been on the brink of crying a couple of times today.

 

Debs

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Hi debs what a nightmare... I don't think they would stop you selling the house they would take it from him if he's due any money from the sale, it all depends though if he is a limited company or a sole trader, as being a limited company protects your personal assets, hope this helps a little.x

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Oh I am so sorry, I hope this does not cause you any hassle. Not very nice of him to tell you at this point. I wonder if you can get some advice from one of these telephone legal advice companies? Would your solicitor not be bound to keep it to herself, surely her role is to protect you?

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Hi Debs

 

Really feel for you I think that if it not listed as one of the firm assets then you might be ok You should phone citizens advice your really need legal help here. We are all here for you just wish we can make it alright for you.

 

Hugs

Deb

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I don't know if he's limited or not and I can't ask him right now coz I'm so angry with him. He had jonny this weekend, picked him up really late on Friday night, went to work all day on sat leaving jonny with his nan which I don't mind, then when he finished work he picked jonny up from his nan and dumped him with my oldest son for the night and went out drinking and didn't pick him up till late afternoon Sunday. He only has him every other weekend. Then he tells me he's not got any money for maintenance and that he's going bankrupt. Aaarrrrggghhhh. I've nearly finished packing. Those little boxes felt my wrath lol

 

Thanks everyone for your support x x

 

Debs

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I did a law degree many years ago, but other than paying the masses of student debt I accrued I haven't given it a single thought since. I do vaguely remember that solicitors have certain obligations when dealing with assets that might be subject to bankruptcy proceedings, so I think not coming clean to your solicitor might have been for the best? It's unlikely that your ex husbands creditors are entitled to any more than he is from the sale of your property, but I would seek independent advice, immediately. If you're lucky then it's a limited business that's going bust and not your ex declaring bankruptcy personally.

Has your solicitor mentioned any dates yet?

Deb x

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I can't even imagine how angry you must feel right now :shocked:

 

I agree with Sideshowdeb....take some independent advise and also ask what your solicitors obligations are! You definitely need to find out if he's a sole trader or limited company.

 

Sending you (((big hugs))) and hoping everything works out...you've come too far for it not to!

 

Lou x

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I am so sorry to hear this. Poor you. How long to exchange? Different for each person depending on circumstances. For us, it dragged on while the buyers looked into things the questionnaire raised. If there are no issues then it should be straight forward. Without a doubt you should instruct her to move ASAP as a matter of urgency. CAB is a must.

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As if you don't have enough stress.

 

As the others have suggested I would ask your solicitor or independent advice, but as you already have a buyer for the house and the sale is nearing completion, I would have thought that they would take that into consideration and as it is only him going bankrupt and you are no longer together, they take his half of the proceedings, not yours. I think it would be slightly different if you were not selling and did not already have a buyer, they might force the sale of the house and take whatever they could get for it, but in theory you have done the hard work for them, and they might just let the sale go through and then just take his money. Talk to someone professional as it may take a lot of pressure of you and you can just carry on as normal, especially as you already have a solicitor involved who might contact them for you and confirm everything to them so they leave you alone.

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oh Debs that really is a pile of pants! You have got this far, so dont let some stupid bloke get in your way now! Get yourself some legal advice, get a full picture of where and how you stand then make a plan to move forwards. Sending you lots of hugs and positive vibes and keeping everything crossed that you get through in one piece! :wubclub:

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Hi Deb,

 

 

You need to be sure what your ex-husband is meaning when he refers to 'bankruptcy'. Depending on whether his business is limited or whether he is a sole trader will determine what he will be liable with his creditors etc. The term 'Bankruptcy' could be viewed by some as a general meaning for insolvency or liquidation but in reality all these types will have vastly different consequences for both him and therefore possibly for yourself. For example has he declared himself bankrupt or has this been forced upon him by creditors? Or perhaps he has just run out of money and is simply looking for a handout from you! Also, as explained you must enquire whether his debts are personally guaranteed or whether they are within a limited company; I don't think he has explained himself to you very clearly. It doesn't sound as if you yourself have personally guaranteed any of his debts?

 

 

As per advice from others on PP you need to seek professional help but before you begin incurring unnecessary fees I suggest that you contact your local CAB for an initial appraisal of your situation, it may necessitate your ex-husband being present also. However in my opinion I cannot see how any of his creditors could have access to your share of the proceeds of the house sale particularly when you have been separated for so long and he has failed to contribute to mortgage payments within that time. It seems to me that any debts incurred by him were done so long after you separated. Should any creditors possibly have a right of access to HIS share of the equity in the property they could well be fully prepared to wait until your house sale has completed in order for them to realise their potential share of the proceeds, therefore I shouldn't be too concerned at this stage Deb.

 

 

However the important thing here is to protect yourself and your little boy by seeking correct advice from people that know. One other thing; just be certain that your ex-husband is feeding you correct information with regards to his present financial circumstances if you know what I mean and in particular taking into consideration your impending move to Perth. It wouldn't be unusual for ex-partners to turn somewhat 'nasty' under these circumstances for example.

 

 

All the best,

Rob.

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I hope I can shed some light. My secreatary went through a similar problem, when her husband, who she was happily married to, announced that he had run up a huge (100K+ debt). He went bankrupt, and they forced them to sell the house, so his half (it was in joint names) could be recovered. She kept 1/2 the money and moved on from there.

 

If you are selling anyway, that probably helps with the process, though I'm sure you should talk to a soliceter about it, just in case.

 

Sorry to her you news.

 

Nick

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Oh goodness Deb what an awful lot of stress and worry you can do without! My friend's husband went bankrupt but they were not together and could prove that etc and she kept her money from the house but they were forced to sell to redeem his half of the capital. I think you need to seek professional advice though as said above every case is different. This is just a curve ball, you can choose to dodge it or choose to catch it and throw it damn hard back where it came….if I know you well enough you will do the latter! Massive hugs and I hope this gets sorted swiftly and painlessly xxx

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Debs what absolutely awful timing!

 

I agree with everyone that you need to get some legal advice pretty quickly! Also just wondering if it is just a bit of sour grapes aimed at bursting your bubble and if it doesn't have any substance of truth? Whatever is behind it all, you really do need to know where you stand. I would think that as you have paid the mortgage for the past 8 years it would have a large bearing on the outcome too.

 

Good Luck Debs....

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