Ex-wife bankruptcy

[di4mond]

Hi all, I'm posting on behalf of a friend of mine who does not have internet access. He is in a real mess at the moment.

 

Five years ago his wife left him. They divorced and he got full custody of the children as she didn't want to see them and she got 1/3 of the house. The 1/3 of the house was put off until the children turn 18 and the house can be sold.

 

Since the divorce my friend still lives in the house with his children. He is on income support. His ex-wife has run up thousands of pounds in debt buying a car, and on credit cards. She has been unable to pay them off as she got pregnant to her new boyfriend. She is now also on income support as her new boyfriend left. My friend has just heard that his ex-wife is going bankrupt and has been told that her share of the house he still lives in will be needed to pay the debts and the house will have to be sold.

 

He is terrified and worried sick now. He isn't the worlds most confident person, and although he is a fantastic dad, he can't see a way out of this. He can't afford to sell the house to give his ex-wife her 1/3 because if he does he wont have enough left to buy somewhere else for him and his children. He wont get rehoused by the council as he will be 'intentionally homeless' and at best will end up in a hell hole area miles away from the kids school and his family who do loads to help him out with the children. Because he will have a small lump sum from the 2/3's of the house he wont get benefits and will have to live off that money - which wont last long anyway.

 

Can his ex-wife force the sale of the house because of her bankruptcy? The original court order at the time of the divorce was the house couldn't be sold until the children turned 18. Can a bankruptcy court overturn that? Please if anyone can advise, my friend is in a terrible state over this and can see no way out.

[jansus]

sorry not my area of experience but there are some links on here where he maybe able to ask some questions.

 

Also bumping your question up:)

 

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/CourtClaimsAndBankruptcy

[notreadytogiveupyet]

bump........

 

Not sure about that one....... difficult one that.......... we shall have to see what Ell-en or the other guys come up with.... They'll be about soon enough.

[Little Heart]

Hi.

You need to speak to you ex wife's trustee or the Official receiver direct.

 

I've copied and pasted the info below from a web site.Hope this helps.

 

LH

 

If an insolvency practitioner is handling a bankruptcy, the husband, wife, partner, relative or friend should contact the insolvency practitioner for information on what to do.

If the Official Receiver is handling your bankruptcy, the husband, wife, partner, relative or friend should contact the Official Receiver. If the home is jointly owned, they may be able to take part in a low-cost conveyancing scheme run by The Insolvency Service and a firm of solicitors. Under this scheme, the beneficial interest and the legal title can be transferred to your husband, wife, partner, relative or friend. Please note that they will have to pay:

• for a solicitor or licensed conveyancer to act for them in the transaction;
  
• £211 (as at February 1999) to cover the Official Receiver’s legal costs. This amount must be paid in advance. It includes an allowance for expenses which may be incurred in the transaction. If the allowance is not fully used, they will receive a refund;
  
• the cost of an independent valuation unless you already have a very recent independent valuation of the property;
  
• the agreed purchase price for the beneficial interest based on the valuation. If your home is now worth less than the amount you still owe on it, the price of the beneficial interest will be set at £1
  
  

The purchaser will also have to give the Official Receiver up-to-date details in writing of the amounts which would be needed to fully pay off the mortgage and any other charges on the property. If your husband, wife, partner, relative or friend cannot afford the costs of the scheme at present, they may still be able to take part at a later date. They should contact the Official Receiver about this. If at a later date an approach is made to the Official Receiver to purchase the beneficial interest, and the property has increased in value, it is likely that the purchase price will be more than £1.If the home is mortgaged, the lender may have to agree to the sale - the solicitor or licensed conveyancer dealing with the transaction will be able to advise on this.

[raydetinu]

I ask if the house is currently in joint names and is it subject to a mortgage and if so does the wife contribute anything to that, say one third that being her share of the sale price.

I would not think that the house could be sold now as the welfare of the children is paramount and a judge has already ruled about that. That judgement would have to be set aside which I doubt would forthcoming. In other words the debtors would have to wait or it would become an un collectable asset.