Ex-wife bankruptcy

[di4mond]

Just posted this in the repossessions forum, but thought it might be good here too.

 

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.

[citizenB]

Hi, I am unable to offer any advice on this, however I am sure someone with more knowledge will be along soon.

[WelshMam2009]

I'm slightly confused...sorry!!

 

Is her name still on the deeds? If so, are they listed as tenants in common??

 

Also, you talk about thirds but is it essentially a 50/50 split as I can't quite fathom this out!!

[WelshMam2009]

Ok, I think I understand...she only got a third put won't receive it until the children turn 18?

[di4mond]

Ok, I think I understand...she only got a third put won't receive it until the children turn 18?

 

Yes, that is it. At the divorce, when it went to court, she wanted half the house and wanted it there and then. But the court ordered that she got a 1/3 (due to her not contributing to the mortgage after the split and before the court case and also because she didn't have custody of the kids), but it was deferred until the kids are 18. When they turn 18 the house has to be sold and she will then get 1/3 of the sale. However with her now going bankrupt, she is saying to my friend that she has been told she must have her 1/3 now and the house must be sold - which will make my friend and his children homeless.

 

Surely this can't be right. Can a bankruptcy court disregard the divorce court and insist the house is sold? He isn't the one in debt here, all these debts were run up by his ex-wife after they divorced.

 

@ WelshMam2009 Is her name still on the deeds?

 

Yes.

[palomino]

There are several issues here.

 

1. The Official Receiver is the one who decides whether the house has to be sold, not your ex-wife. Disregard anything she says.

 

2. The matter of the house will only be relevant if there is any equity in the property after the mortgage has been paid.

 

3. The OR will have to take regard of the court order but who has priority is something I don't know.

 

4. The Official Receiver has a reputation being sympathetic and non-judgmental. They deal with many thousands of cases every year and are fully cognisant with all the issues involved.

 

You can contact the Official Receiver here - http://www.insolvency.gov.uk

You should also discuss this with the National Debtline - National Debtline – Free, Confidential Debt Advice – Call 0808 808 4000

[di4mond]

Thank you, I will print this out and pass it on. I hope it can put his mind at rest a little.