Here is a brief overview of my current situation followed by my questions * my wife & I separated in April 2007, amicably agreeing a 64/40 split on the proceeds from the sale of marital home (no legal record of this agreement - proof is just bank transfers) * have not yet divorced (neither of us have had the financial means to) * wife bought flat in May 2007 with her proceeds as home for her and our now 11 year daughter * I used mine to set up restaurant business (started trading May 2008), for living expenses and to support business * business (limited company) ceased trading in July 2009 due to being technically insolvent and will apply for s652 Strike Off * personal debts approx £10k but may increase depending on business impact * business banking loan debt approx £42k - 75% covered by SFLG (I only rent my flat) - pending clarification of bank's positioning but I may be liable for 25% * HMRC company debts £12-15k * kitchen equipment leases approx £14k (personally guaranteed by my 76 year old mother - no comment) * other company creditors approx £9k * my director's loan approx £53k * personal guarantee on premises lease - landlord is currently waiving rent whilst we are trying to find a buyer * I don't have funds to obtain professional IP or accountants help
I have heard conflicting reports about my potential "beneficial interest" in my wife's flat - CAB said OR would look at this - a paralegal said they wouldn't because a. I was solvent at the time of separating b. sale occurred over 2 years ago c. our daughter is a minor - a web document http://www.taxaid.org.uk/uploadedfiles/document/1_117_Bankruptcy(advisers).doc section 10.11 refers to Harman v Glenrcross [1986] 1 All ER 545 and Austin-Fell v Austin-Fell [1990] 2 All ER 455 a. marriage breakdown occurred some time before the insolvency b. disposal of the property will therefore cause hardship to an ‘innocent’ former spouse or children who are still in education
1. I would welcome any advice as to whether a definitive answer is possible regarding this potential beneficial interest or will it depend on the day who I get as the OR? 2. Also, would this potential beneficial interest come into play on an IVA/DRO/DMP? 3. Do you think there is any risk to my mother getting drawn into any "beneficial interest" due to her PG on the kitchen equipment? 4. And finally, can HMRC force my personal compulsory bankruptcy for their £12-15 against me as a director of the limited company?
Many thanks Forum userid: endofdreams
Edited by - endofdreams on 13 October 2009 11:42:43
This quite a complicated situation and I would definitely recommend a call with RevivaUK or Jones Giles (or both) to see some advice on the best way forward.
I am really not sure about the rules regarding the BI so can't help you there but HMRC are one of the few creditors (Council and AMEX are others) that will declare you BR even for £15k or less.
Contact RevivaUK (http://www.revivauk.com/) or Jones Giles (http://www.jonesgiles.co.uk/) about this issue as it looks like you will definitely be BR (either declared yourself or forced by HMRC) and BRs need to be planned to make sure you get the best result regarding the BI. Both companies offer free initial advice and will only charge if you require further services.
If you had other assets at the time of the split like a better pension then 60/40 would be seen as a fair division I would have thought. Worse case scenario would be the OR wanting that further 10% from your ex btbh I can't see that happening.
brief overview of my current situation
Posted - 13 October 2009 : 10:18:18
