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geoffevs
Starting Member
United Kingdom
4 Posts |
 Posted - 21 July 2010 : 22:19:31
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| Where do I start. Have been very stupid and racked up debts of £90K. Debtors are threatening all sorts of things.Want to go bankrupt but how do I explain how I racked up so much debt. Got divorced last year and had £23K equity out of our house and used it to pay some of my debts off, will they look into whether or not I had enough out of the house. I had about 20% of the equity as I have 3 children and waned them to carry on living in the house. Can I go to prison for being so foolish racking up so much debt. Please help!!!! |
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debtinfo
forum expert
2826 Posts |
Posted - 22 July 2010 : 07:00:44
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| You cannot go to prison for simply getting into debt, You can only go to prison if you committed fraud or theft |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 22 July 2010 : 09:29:03
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Hi geoffevs
With regard to the divorce/house, the OR/trustee will look at what assets you had in the last 2-3 years and what you did with them.
From what you have posted I take it that your ex wife bought out your interest, but gave you 20% instead of the 50% you are, at least on paper, entitled to.
If this is the case the OR will look into why this was done - it appears that it may be a transaction at undervalue (whereby you give something away for less than it is worth) e.g if your half share of the property was worth £50,000, but you transferred it to your wife for £20,000.
There may be various reasons to justify why you did this, e.g if she paid more towards the initial deposit, mortgage repayments, improvements to the house etc, or if it was done as part of a formal divorce settlement, but initially at least the OR will look very closely at it
There are other factors which may affect it as well such as on what basis the property was valued at the time, and how much the equity was.
In brief, it may be better to talk to an expert before going any further
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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geoffevs
Starting Member
United Kingdom
4 Posts |
Posted - 22 July 2010 : 18:29:35
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quote:
Originally posted by Bridgewood
Hi geoffevs
With regard to the divorce/house, the OR/trustee will look at what assets you had in the last 2-3 years and what you did with them.
From what you have posted I take it that your ex wife bought out your interest, but gave you 20% instead of the 50% you are, at least on paper, entitled to.
If this is the case the OR will look into why this was done - it appears that it may be a transaction at undervalue (whereby you give something away for less than it is worth) e.g if your half share of the property was worth £50,000, but you transferred it to your wife for £20,000.
There may be various reasons to justify why you did this, e.g if she paid more towards the initial deposit, mortgage repayments, improvements to the house etc, or if it was done as part of a formal divorce settlement, but initially at least the OR will look very closely at it
There are other factors which may affect it as well such as on what basis the property was valued at the time, and how much the equity was.
In brief, it may be better to talk to an expert before going any further
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support.
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geoffevs
Starting Member
United Kingdom
4 Posts |
Posted - 22 July 2010 : 19:18:29
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thank you for your advice.quote:
Originally posted by Bridgewood
Hi geoffevs
With regard to the divorce/house, the OR/trustee will look at what assets you had in the last 2-3 years and what you did with them.
From what you have posted I take it that your ex wife bought out your interest, but gave you 20% instead of the 50% you are, at least on paper, entitled to.
If this is the case the OR will look into why this was done - it appears that it may be a transaction at undervalue (whereby you give something away for less than it is worth) e.g if your half share of the property was worth £50,000, but you transferred it to your wife for £20,000.
There may be various reasons to justify why you did this, e.g if she paid more towards the initial deposit, mortgage repayments, improvements to the house etc, or if it was done as part of a formal divorce settlement, but initially at least the OR will look very closely at it
There are other factors which may affect it as well such as on what basis the property was valued at the time, and how much the equity was.
In brief, it may be better to talk to an expert before going any further
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support.
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Can I go to prison for racking up so much debt?
