Bankruptcy & Seperation

[xtremx]

I in need of a little advice.

 

After 20 years of marriage my wife and I have decided that or marriage is all but over.

We don't own our home it is a council property and we have 2 kids and I owe about £15000 in my name ie: Credit Cards, Store Cards and my wife owes around £3000

 

Also my wife works, But ashamed to say I don't due to Mental Health Issues (so I'm a househusband)

 

We are still going to live together for a few more years as we have a lot happening at the moment our children are aged 12 and 3 and have their own set of problems which we both want to be around for to help and also we need a larger house (whether I'm here or not).

 

So we have given ourselves a time frame of 2-3 years before we are separated and in that amount of time we are going to try and pay of my wife's debt first so when we do separate she will owe nothing. And also try to reduce my debt in that time (to hopefully a manageable amount), But if we find in that time frame that our marriage is turning sour we will end it sooner (but hope to have her debt clear at least).

 

Also we are not looking to divorce (not at the moment) but still we are looking to make our own life's

 

But my question is if we are unable to clear my debt what would happen if when we separate and I move out of the family home and then go bankrupt what would happen to the items in the family home (nothing of real high value) and about the only thing I would need to keep is my mobile phone (on contract) due to Mental Health Issues I need to be able to contact people and have internet (for advice).

 

And also how long would I need to wait before filing for bankruptcy after I move out.

 

Also to be legally separated do we have to be apart for a certain amount of time.

 

We are only trying to think about our finances so it will not have a impact on the children's well being and so it can also make our split as painless as possible..

 

I hope this makes sense and is not a stupid question

Edited March 17, 2013 by xtremx

[Stigman]

Hi,

 

Their is nothing to stop you filing for Bankruptcy now or at anytime, regardless if you live in the property or not, as you debts are around the £15,000 mark, get a copy of your credit file and total up all debts because you may qualify for a DRO which is a £90 cost instead Bankruptcy costs of £575ish excluding Court Fees.

 

If you have a joint bank account, this will more than likely be frozen so you and your wife will need to open up a basic account from Barclays.

 

Any debts which are joint will become your wife's responsibility to pay, assets of massive value or a motor car can be sold by the Official Receiver but as you stated that their is nothing of high value the Official Receiver will not bother because the cost of removal, storage and selling will far outweigh the total cost of the items.

 

As to the mobile phone contract, you may have to supply medical evidence for your mental health issues to the Official Receiver and it will be their decision if you can keep it.

 

Never be ashamed of mental health issues, but the sooner you sort this out, the weight lifted will benefit you.

 

Stigman