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| martin.cy |
Posted - 15 September 2010 : 20:57:33
Hi there. I am a sole trader with a failing business making no money. I run at a loss every month, and have no employees. I have 32,000 of debt in my name on credit cards which I have run up over five years. I am married and kept the debt secret from my wife until I had used all of our cash savings to cover my "wages" and credit card minimum payment fees. The whole situation is now in the open.
We have a house with a joint mortgage and over 100,000 in equity, plus she has an endowment for 14,000 in her name.
She has asked me to leave the house, move in with my mum, and I am looking for full time employment. We have visited CAB, and talked with CCCC, which is in its early stages.
My first thought is when I leave home, if I were to pursue bankruptcy, would my wife and our home be affected! I realise their may be other options, but I do need some advice on wether my assets in the home and her endowment would be taken into account.
Taking the house and endownment out of the equation, I have no money incoming. Any help would be greatly appreciated. |
| 5 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 21 September 2010 : 16:23:10
I would recommend either contacting any of the professionals who post on here, or speaking to a couple of insolvency practitioners who will be able to go through the various options with you.
You can find the experts' details at the side of the page, and you can find the details of many IPs on www.iva.com.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| Reviva UK |
Posted - 20 September 2010 : 19:17:14
Hi
I realise that you must be very stressed but you need to take stock of the situation and take control of it otherwise it wil be a nightmare because you do have lots to lose by getting it wrong.
First things first - and I would suggest you take time to reflect before doing anything.
1. What is the situation with your wife? do you want to maintain the relationship, is the debt and failing business the problem or is it something else.
Like it or not she does need to be included in the solution because otherwise she will be effected dramatically.
2. There are several solutions available - BUT BANKRUPTCY is probably not one of them at the moment.
3. Depending upon the business, job, wife's contribution there are several alternatives.
4. Depending upon which creditors you have ( MBNA or the goverment owned banks ) will also have a massive impact upon your choices.
5. Don;t take too much advice because you will end up going round in circles. Each "Debt Solution " company will want to sell you their solution, be it IVA, Debt Management, Bankruptcy etc.
I would really suggest that you speak to an impartial solution provider not trying to sell you any one specific product and thenwork through all of the options. You may find that your end solution is a combination of a couple of solutions.
i.e.
a. debt management plan to calm everyone down and give yourself time to think.
b. review your future income / expenditure and review the viability of an IVA or long term debt management plan.
c. review the option of Negotiated Settlements ( where one negotiates with creditors to clear the debt off with lump sum payments ) . depending upon your wife's position it may work better for her to cash in her endowment and "buy some of your equity" and with the 14k you are likely to get rid of the majority of the debt if you keep a cool head.
The type of soluion above might:-
1. Save your home
2. Allow you to rebuild your marriage
3. Ensure your wife protects her 14k ny buying some of your share of the house
4. Avoide Br
etc etc etc
Take your time
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
| Bigal4787 |
Posted - 20 September 2010 : 14:29:59
Martin.CY
unfortunately for you with £100,000 in equity, and unless your wife or a third party can come up with £50,000 to buy out your BI, the OR will have no option but to hand the case over to an IP(insolvency practitioner) as a trustee other than the OR, to deal with the equity and any other assets, as the OR is generally not in a position to deal with it.
Big Al |
| Blackie |
Posted - 16 September 2010 : 08:03:37
Morning Martin
Unfortunately it is likely in a bankruptcy scenarion that your wife will get involved mainly through the house. The Official Receiver will require your portion of the equity in the property - which is usually calculated at a straight 50%. Your wife will probably beased first if she wishes to purchase yourinterest. However in a case like this where your wife is not involved in bankruptcy proceedings, she will probably have up to three years to sort the matter out. If your wife or family are unable to raise the money, the house may have to be sold to release your equity.
All the best
John Blackadder |
| stuart30 |
Posted - 15 September 2010 : 23:43:29
Dont wish too be rude if you have 100,000 equalty then shouldnt you be using that too pay your debts.?
Im just an umemployed bum.... |
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