Wifes sequestration/house equity help

[steveo1]

Hello all,

 

i have tried a search through the forums prior to my first post here, so i hope it is not a repeat or common question.

 

First the background.

 

My wife has a small business (sole trader). This was started and lease signed for a rental place prior to our marriage and house purchase. The property (our home) is my property, currently in mine and brothers name, as he lived here initially.

 

Business has been bad, i have been chucking money at it for my wife during the past 3 years, in order to keep it going forward. The recent slump has impacted both on my wife's business, and my work. I need the money i earn now for keeping the roof over our heads etc. Separate to this issue the house is on the market, as i am moving for work. My wife has 2 years to run on the lease @ 11k per year and has outstanding 4 k of business debt to wholesalers and 5k outstanding to credit cards. Currently she has no asset at all. The car is mine in my name and i take her in to work as we work close together in the city.

 

The million dollar question is, if she opts to go through the sequestration procedure, will the equity of the house be called upon?

 

On paper there is 60k of equity. But i owe out 25k for works done to get it to sale standard over the past 9 months (work moving has forced my hand). My family member who has lent me this money may consider making a charge for the cash on the house, which i agree to. Of course my brother and i split the last little bit after fees.

 

It is the lease that is the issue, all other bills i could in theory deal with over 6 months. But we don't want to pay everything of and she still get forced into bankruptcy for the lease, we would lose and lose again from my perspective.

 

We Apologise for the long 1st post.

 

Kindest Regards

[IdaInFife]

Hi Steve,

 

You do realise that if you wife goes down the BK route that you are financially linked that this may affect your files?

 

you are saying that on the title deeds it you and your brother?

 

can you say roughly how long you have been married?

 

is there any clauses in the lease if you want to end it early

 

and welcome to cag

 

ida x

[IdaInFife]

one more thing,

 

has there ever been anything like a secured loan on the house in you and your wifies name?

[steveo1]

Thanks for your reply Idainfife

 

I was not aware of the linked issue. Although no agreements or credit is in joint names now or in the past?

 

The deeds are in my brothers and my name yes, we have currently no secured debt at all.

 

We have been married a little over two years, the lease was taken on 18 mths prior to marriage. Wife has not earned enough to feed herself, overall i have put in each year more than she has drawn out, shown in accounts.

 

I had a bit more of a read and found discussions on beneficiary interest. I am thinking that in reality no money has been put into the house or household upkeep from my wife, which will exclude the house as an asset. The house has cost me more money than the asset (falling market and stung for a roof missed on survey). Again i picked up 80% of this with the rest borrowed from family of mine.

 

The only linked financial interest is a joint account, no overdraft, opened 6 mths ago.

 

No break clauses in the agreement, it is watertight

 

Thanks for your thoughts so far, really just trying to keep ahead as this could very easily run away. the business is losing near enough 800 per month.

 

thanks steveo1

Edited November 24, 2009 by steveo1
mistake

[IdaInFife]

ok then sounds as you are ok with the house then if you had this prior to your marriage.

 

 

if you wife does goes through BK, make sure you have an account in your name only prior and make sure any incoming payments for you goes into their preferably with a different bank ( although the acc would be in your name it is not unknown for it to cause problems)

 

0808 808 4000 national debtline is quite good if you need to speak to someone and can help with the BK

 

National Debtline Scotland | Debt Advice | Factsheet 01 Bankruptcy

 

also remeber that if you wife goes down the BK then the household income that is calculated on when they decide if any payments are to be made

 

Ida x

[steveo1]

IdaInFife

 

Many thanks, that really does help to clarify in my mind what i have been thinking!

 

I tried to offer an assignment of lease and keep paying rent for the premises until re let today, but the landlord wants half the costs up front the rest on completion. They did not seem to get what i was saying....i have no more to put in, the option is you get nothing from next week. Tried the decent thing with suppliers as well, in asking for a few months of leeway, with a reasonable payment being made weekly and new stock purchased upfront, got bad responses.....straight to ccj in general. So they will get next to nothing in the end. It is a shame really as we kept lines of communication open with all, but after a 1st CCJ to my wife we had nothing to gain by keep paying out of my pocket as credit shattered for her anyway.

 

Many thanks for your assistance again, i will have a look around the boards and help others where ever possible in areas that i am more keyed up.

 

Kindest Regards