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doorstop
Starting Member
United Kingdom
3 Posts |
 Posted - 08 May 2011 : 12:07:21
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Hi - my first post, so please bear with me.
While married my ex and I incurred a large amount of unsecured debts
in a mixture of my name, her name, and joint names.
If I go bankrupt how are these debts treated?
For example, what happens to a debt in her name if she defaults on
it some time after I am bankrupt?
How much of joint debts and her named debts are included in my
bankruptcy payment arrangement, and again what if she later defaults?
...and seeing as it's my first I may as well make it worthwhile:
Just how bad exactly is bankruptcy under the current rules/guidelines? (Is it possible to live on the amount the OR leaves
you?)
Thank you in anticipation...
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 May 2011 : 12:31:35
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Hi and welcome to the forum.
For joint debts then you are both jointly and seperately liable for them so if you go into bankruptcy, your ex will still be liable for the full amount and will either have to pay the contracted amount or negotiate a payment schedule.
Any debts in her name are hers, your br will not have any effect on them at all - joint debts will be written off for you, but not her.
Bankruptcy will mean you are debt free immediately although you may have to make payments for three years depending upon your disposable income.
You will be able to have a life!
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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doorstop
Starting Member
United Kingdom
3 Posts |
Posted - 08 May 2011 : 12:47:03
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Thanks for the quick response..
So debts in her name that were incurred during the
marriage do not come under the "jointly and
severally liable" umbrella - is this correct?
Also, how are payment arrangements calculated? -
My disposable income would probably settle my own and
half the joint debts within 3 years without interest added.
- If creditors are receiving a reasonable payment via my
BR payment will they still pursue my ex for the full amount?
How does it all work? ( and apart from on here, where can
I get genuinely knowledgeable individual help ? )
.....don't want much do I ? :-)
Thanks again |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 08 May 2011 : 13:25:14
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If the debt is solely in her name then it is hers alone.
Your payments are based on any disposable income over £20 a month once your priority bills have been paid.
Creditors will receive some payment from your IPA but I imagine your ex will be liable for the remainder.
You can't ask too much on here! One of the experts will hopefully pick up on this but you can also contact one of them for free advice by clicking on the expert link on the left hand side of the page.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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doorstop
Starting Member
United Kingdom
3 Posts |
Posted - 09 May 2011 : 13:45:49
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Thanks again.
Regarding the IPA, is it -
a) A target figure based on total debts at time of bankruptcy?
b) A target figure based on bankrupt's 'share' of
debts at time of bankruptcy?
c) A purely punitive figure based entirely on ability to pay?
AND....:-).....
If a) , what if ex is pursued and pays off some of it?
if b) , then what if ex subsequently goes bankrupt too?
if a),b) or c) , what if entire amount is satisfied by IPA payments in less than 3 years?
I hope this makes sense.
Thanks. |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 09 May 2011 : 14:49:16
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It's based on your surplus at the end of the month after all your priority bills, food, clothes, living costs have been paid.
If you have £1000 coming in and your outgoings are £800 then you will pay £200 per month. This can change at any time if your income and expenditure changes.
I suggest you speak to an expert as bankruptcy may not be your only option.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Bankruptcy liabilities after divorce?
