Unsure what my best option is, my head is a complete mess.

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bellshollsmarls
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by bellshollsmarls » Tue Dec 05, 2017 10:56 am
I'm currently in an IVA. I was married when I entered the IVA, Dec 2016. We finalised our divorce in April 2017. We're still cohabiting. She is not taking any responsibility towards the debt and pays minimal towards the upkeep of the house. I am in shared ownership (49%) with a housing association. I'm thinking of doing the following:

1)selling the house
2)asking her to move out and renting the rooms (she will put up a fight, purely out of maliciousness)
3)applying for bankruptcy.

1 - when i told her i might be selling the house, she informed me that she is expecting some of the money from the sale of the house, before my creditors get paid. I owe around £35k. She wants me to pay all of that and pay her £10k. I'll have some equity in the house and the value has gone up, although I'm not sure it's gone up enough to cover all the IVA debt.

2 - if i ask her to move out, i can rent the rooms out and still pay towards the IVA. problem is, she is a vindictive, malicious person that will try do do me over out of sheer principle. so i think this might be an unreasonable way to go

3 i am unsure about this. it sounds possibly the best option now. what i'm concerned about is that if i declare myself bankrupt, she can come for money from me after i have applied for this. i'm not even sure if she is entitled to any of the house sale money. also, if i go this route, does the house get sold the normal way or do the trustees sell it at a low price simply to get it sold quickly to get money to pay the debt? also, a while ago, i was involved in a car accident, when i phoned my insurers up, it turned out that I insured my car online using my ex-wifes details. i'm still unsure how that happened, but I'm stuck with a accident value of £5500. if i go bankrupt, will the insurers be able to try to collect this money from me?

i'm sorry if it all seems a bit all over the place, but my head is a complete mess. please message for additional details
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Foggy
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by Foggy » Tue Dec 05, 2017 12:05 pm
First -- who owns your share of the house ? If you sell the creditors are only entitled to your share of the equity -- that is AFTER the housing association has had their percentage, and possibly the ex has had her half of what is left, if she is a joint owner. If the equity they are entiltles to ( the creditors) doesn't cover the whole original debt, plus fees and possible statutory interest the IVA will carry on until the bitter end.

What was sorted as a settlement during the divorce ?

If you go bankrupt the Trustee is supposed to sell for the best price they can get, and, again, can only suck in your share. In reality the house will probably go to auction and the best price there might not be what you would get by doing it up and hanging on for a year with it on the market. Yu might also end up with having to make payments of a similar amount to those in the IVA for up to three years.

You could OFFER to sell up by saying that you will consider selling for the sole purpose of making a full and final offer -- the amount being based on the number of remaining payments (plus 12 for equity) multiplied by your current monthly amount. There might be enough to do that, pay her the £10k she wants and settling the insurance, and getting everything sorted on one go. You will need to make sure that you keep back enough to rent somewhere or you will end up homeless --- renting in an IVA, though not impossible, can be a bit more expensive.
bellshollsmarls
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by bellshollsmarls » Tue Dec 05, 2017 1:05 pm
My name alone is on the deed and mortgage. She had a bad credit rating and was refused. So, it's just me and the housing association that owns it.

I'm reading so many differing articles on bankruptcy. some say its for a year, and then discharged. even on the official goverment site is says 12 months. see below, from their website.

9. When bankruptcy ends
Your bankruptcy and the restrictions generally end when you’re ‘discharged’, which is usually automatic.
This is usually 12 months after the adjudicator made you bankrupt. It can be longer in some circumstances, for example if you don’t co-operate with your trustee.


it's just that everything i've read makes bankruptcy seem like the only logical choice. i'm currently on a pay break, but with the accident i have to pay now, I'm not entirely sure i'll be able to meet both payments and meet my other obligations.
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Foggy
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by Foggy » Tue Dec 05, 2017 1:19 pm
When you go bankrupt, at the moment, you are bankrupt for 12 months then discharged, BUT, if you have sufficient disposable income, you could also get an IPA to make payments, similar to those in an IVA, for up to three years.

If the OR feels it is justified due to the circumstances of the bankruptcy, you could get an IPO for as long as they deem --- but this is generally only done where there are attempts by the debtor to avoid paying ( hiding assets, fraud, etc.)
bellshollsmarls
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by bellshollsmarls » Tue Dec 05, 2017 1:25 pm
Makes sense. Thanks for clearing that up
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Lisa Thomas
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by Lisa Thomas » Wed Dec 06, 2017 9:37 am
Was she granted any payment from you re any interest in the property as part of your divorce proceedings?

Why is she still living in your home if you are divorced and if you own the house outright?
bellshollsmarls
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by bellshollsmarls » Wed Dec 06, 2017 9:50 am
Lisa Thomas wrote:
Was she granted any payment from you re any interest in the property as part of your divorce proceedings?

No, it was a clean separation. We decided that economically it would work better if she and her 21 year old daughter stayed. A year on, after the divorce came through, I want to sell so I can clear the debt we accrued together, all in my name, that she is refusing to take any responsibility for. I’m worried that she is entitled to money. I can’t really see how, but the worry persists. I’ll be seeing citizens advice early next year to discuss this before selling the house.

Why is she still living in your home if you are divorced and if you own the house outright?


Seemed easier at the time.
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Foggy
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by Foggy » Wed Dec 06, 2017 10:20 am
Alongside the usual decrees in divorce (nisi and absolute), did you get a Financial Consent Order (often referred to as a clean break agreement) ? If so, that is binding and she can make no further claim. If not, then she could make a claim for an equitable interest in the property, which would have to be decided by the courts, unless you come to an agreement between the two of you.
bellshollsmarls
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by bellshollsmarls » Wed Dec 06, 2017 10:27 am
Foggy wrote:
Alongside the usual decrees in divorce (nisi and absolute), did you get a Financial Consent Order (often referred to as a clean break agreement) ? If so, that is binding and she can make no further claim. If not, then she could make a claim for an equitable interest in the property, which would have to be decided by the courts, unless you come to an agreement between the two of you.



no, we didn't. if she wants to make a claim to money from a house in my name, shouldn't she then also be liable for the debt?
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Foggy
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by Foggy » Wed Dec 06, 2017 10:35 am
bellshollsmarls wrote:
Foggy wrote:
Alongside the usual decrees in divorce (nisi and absolute), did you get a Financial Consent Order (often referred to as a clean break agreement) ? If so, that is binding and she can make no further claim. If not, then she could make a claim for an equitable interest in the property, which would have to be decided by the courts, unless you come to an agreement between the two of you.



no, we didn't. if she wants to make a claim to money from a house in my name, shouldn't she then also be liable for the debt?



You can include that in your arguement or in your counter claim, if it goes that far.
bellshollsmarls
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by bellshollsmarls » Wed Dec 06, 2017 10:42 am
hopefully it won't get to that. thank you for your advice.
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Keith White
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by Keith White » Wed Dec 06, 2017 6:55 pm
It might also be worth adding that even though her name is not on the deeds or mortgage she may well have built up some beneficial interest in the property and may be legally entitled to a slice of the profit on completion of a sale. If that is the case then its only your share of the profit that would be made available in bankruptcy or an IVA.
bellshollsmarls
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by bellshollsmarls » Wed Dec 06, 2017 7:23 pm
Do you mean that if she goes to court, they’d possibly let her have what she’s feels entitled to before the debt she and I accumulated together gets paid?

How’s that fair? Or even just?
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Foggy
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by Foggy » Wed Dec 06, 2017 8:09 pm
bellshollsmarls wrote:
Do you mean that if she goes to court, they’d possibly let her have what she’s feels entitled to before the debt she and I accumulated together gets paid?

How’s that fair? Or even just?


Basically yes -- unless you counter claim. The courts want to arrive at what they see as a fair settlement. The judge should offset one against the other .... she will have to prove that she contributed to the house (doesn't have to be financially) and you would have to prove that she benefitted from whatever the debts were spent on. The judge will then weigh it up.
bellshollsmarls
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by bellshollsmarls » Wed Dec 06, 2017 9:34 pm
I’m seeing CAB soon, and I’ll try to confirm this then, but can I kick her out of my house? What could the possible repercussions of that be?

She is seeing someone else, she does stay over at his 95% of the time.
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