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aj66
New Member
62 Posts |
 Posted - 19 September 2008 : 16:24:51
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| I have recently seperated from my wife (although no legal paperwork has been completed despite leaving in march, although she has registered for council tax as a single occupant with a small child). I currently have £50,000 of debt in my name which has no link to my wife. The house(approx £20K equity) and motrgage are in joint names and she has a very small amount of savings and her pension she has paid into but no debt. I am considering bankruptcy as i have a small business which has only been recently established as part of a larger franchise however is providing no real income leaving me with £3000 month outgoings (inc £1000 business costs) and is spiralling out of control. If i become bankrupt how will my wife be protected and will the house and contents be at risk? |
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John
New Member
United Kingdom
73 Posts |
Posted - 19 September 2008 : 16:53:19
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Hi
if the business and unsecured debts are solely in your name these will not affaect your wife.
The problem area is the estimated £20K in equity half of which is yours and could be claimed by the Official Receiver in bankruptcy. If so your wife would need to purchase your beneficial interest in the property to avoid a forced sale.
The key then is to make absolutley sure of the value of the property by arranging a valuation by a surveyor, I would not recommend estate agent's market appraisal's.
If you organise a surveyor inform them you require a valuation based on a 60 to 90 day sale. This may well result in the equity being greatly reduced or even wiped out altogether.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 September 2008 : 20:03:23
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Hi
sorry to jump in but you may also want to review your franchise documents carefully as it is normal that the franchisor will take back the franchise form you. This is to stop the OR taking control of the franchise as an asset.
macdonalds franchises start at 250k.
he knock on effect is that is you loose the franchise ( perhaps this is a good thing as the franchise fee may actually represent the profit!) you could really do with establishing an income before going br ( either new business or self employed etc ) .
If you are unemployed it will be dificult to justify retaining a vehicle , but if you are self employed - even only for a couple of months - you would be able to demonstrate a need for the transport.
what sort of franchise / industry are you in
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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RHB
Senior Member
1159 Posts |
Posted - 20 September 2008 : 11:04:46
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That is one thing I don't understand because when you divorce assets & debts are seen as joint, doesn't matter whose name they are in.
So, your wife could buy your BI but what would then happen if you ruen round on divorce & want your 50%? Might not be in her interest to do so. I think I would tell her to see a solicitor & see what they reccomend her to do. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 11:20:27
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The key thing here when discussing Beneficial Interest is to have someone you absolutely trust purchase your BI. This is because you will no doube want to purchase it back after discharge for the same amount.
Ofter parents are a good bet.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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RHB
Senior Member
1159 Posts |
Posted - 20 September 2008 : 11:47:40
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What I was meaning was, it would probably be better for your wife & child if you sorted the financail stuff out.
Seems to me a spiteful spouse could leave, run up debt(or do so prior to separation) declare themselves bankrupt get a friend/parent to buy their BI and come out of it all laughing??? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 20 September 2008 : 13:09:10
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Hi RHB,
I have heard of cases where a spiteful spouse bought the BI and then kicked the BR other half out and there was nothing they could do about it.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 20 September 2008 : 14:02:51
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As Julian knows it is amazing what one sees.
If you were sceptical there are occasions that one might suspect that the potential bankrupt has been set up for over 5 years ( male or female )
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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aj66
New Member
62 Posts |
Posted - 20 September 2008 : 14:04:43
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Thanks for the advice so far.
The franchise is linked to car bodywork repairs. With an intial fee just under 20k. The vehicle that I use is a small van purchased on HP with zero equity, which I assume will have to be returned to the finance company as Im guessing i would not be allowed to continue making payments once in bankruptcy?
Gaining my share in the house at a later date doesnt really concern me (as it is my sons home too and ultimately goes to him long term either way) so im happy for it to be transferred to my wife. However I want to avoid her perfect credit history and her assets (ie house) being affected- my biggest concern is that i dont want to have to sell the family home especially not with the low price it would currently return. Sounds so far as if I will be best down the legal seperation route and sellig my share to her with the professional valuation which im sure in the current climate will be very low.
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John
New Member
United Kingdom
73 Posts |
Posted - 20 September 2008 : 16:38:52
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Hi
as long as you do not sell your BI to your wife for less than it's value, then declare BR, you will have acheived your goal.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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aj66
New Member
62 Posts |
Posted - 24 September 2008 : 21:57:33
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Thanks again. I now have a pretty clear idea of what route to go down.
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how will my wife be protected ?
