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Bankruptcy after divorce?
#1
Hi

I'm mid divorce and bottom line is over two thirds of my income are gone on interim maintenance, CMS and full mortgage. Ex not playing ball at all. 

House equity is between 300 to 350 at a guess. (we aren't in London) 
It's suggested by the barrister it's likely to be ordered to sell though to be honest due to circumstances I'll be lucky to get £50-£70k all in all out of this and that doesn't take into account legal fees to date. 

The problem is this is certain to go to a final hearing and even then I suspect I'll be stung paying the full mortgage until it sells. At that point she has every reason to dig in and delay a sale for as long as possible. I can't afford to then incur more legal fees to stop her playing  dirty tactics just to get the house to sell. 
Given my young age I'm at the point I'd rather just start again, I have no assets than a small pension to to worry about. 

It just feels more straight forward to let the mortgage go, self declare bankruptcy and start over than tolerate anymore nonsense after divorce. 

Ultimately it's the roof over her head that's at risk, not mine and I can just start over. 

Any thoughts?
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#2
just be careful as I racked up loads of debt and also got saddled with her court costs, court cost are not cleared doing bankruptcy or any cash awards to you ex by the courts

so if I went BK I would have only cleared half of my debt...
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#3
(08-02-2018, 03:25 PM)mrbungle Wrote: just be careful as I racked up loads of debt and also got saddled with her court costs, court cost are not cleared doing bankruptcy or any cash awards to you ex by the courts

so if I went BK I would have only cleared half of my debt...

So effectively clear what you can beforehand if possible and do it strategically. I'm hoping any maintenance is short and time limited given our ages and the short length of the marriage.  
I'll be damned if I'm incurring more legal fees after divorce to pay a large monthly instalment just for a small amount of equity.  

To be honest I half wish I did it straight away. The chances are the house would have been repossessed by now. 
I simply have no other assets worth considering.
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#4
Of course I dont know the details but wouldnt it be best to just hand it over to her, and walk away debt free? bankruptcy can follow you for 6 years.
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#5
No because she simply has no way of affording the mortgage and her other obligations in her sole name and is unlikely to for a good period.
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#6
(08-02-2018, 08:49 PM)beehive84 Wrote: No because she simply has no way of affording the mortgage and her other obligations in her sole name and is unlikely to for a good period.

Has anyone any experience on a judge ordering the house go to auction? 
How much evidence would a judge require before ordering such a thing depending on how awkward someone can be about selling?
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#7
(08-03-2018, 09:28 AM)beehive84 Wrote:
(08-02-2018, 08:49 PM)beehive84 Wrote: No because she simply has no way of affording the mortgage and her other obligations in her sole name and is unlikely to for a good period.

Has anyone any experience on a judge ordering the house go to auction? 
How much evidence would a judge require before ordering such a thing depending on how awkward someone can be about selling?

Depends on if there are children residing in the house... they may be far less willing to force a sale if there are.

Have you contacted the mortgage provider to inform of the circumstances? They may be able to offer you some options, while any big changes like switching to interest only payments would require both signatories consent you may have other options even just to reduce payment amounts in the short term... Had a similar situation as yourself and found the bank actually quite helpful when I stayed in touch with them.
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#8
Bankruptcy does not affect mortgage debt, only mortgage shortfall after the property has been repossessed, so doing it ahead of repossession wouldn't really help you.
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#9
I would definitely go with trying to remortgage onto interest only to reduce the monthly amount. Make sure CM is assessed via the child maintenance service. I am not clear what stage you are at and am not that up in divorce but if it hasn’t been ordered that you pay £x spousal and £x in CM then you should only pay what you can afford and as assessed by child maintenance service. I would think CM and reduced mortgage should be enough. She will also get all the child tax credits and other benefits so you shouldn’t be having to pay much spousal. You still need to afford to live yourself and have a home the kids can stay with you in. Have you thought about getting finances done by consent order at mediation. I believe it can help if a mediator is involved as makes clear what is realistically possible to ex and saves on legal fees.

Also bear in mind that some unpleasant ex’s will claim you haven’t paid any CM if it is informal as mortgage payments and not assessed via Cm service.

Also where are you at with child arrangements? Many dads focus on that before getting finances and divorce sorted and that way the ex can’t hold you to ransom financially to get contact with the kids. How much time they spend with you will also affect the rate of CM. I would start mediation over that with a view to having a consent order for child arrangements in place before doing the finances and divorce. If she won’t go or agree at mediation then you can apply to court for a child arrangements order. Go for 50/50 shares care “lives with both parents”. Assuming you want them half the time. Actually there is sometimes no CM to pay if it is 50/50 and you can then pay a bit of spousal by agreement and the reduced mortgage.

The other thing if you have 50 /50 is technically the FMH is not the kids main home and you are mite likely to get an order for it to be sold, release the equity to both and her downsize - possibly.

So consent order for divorce and finances is not the same as consent order for Child arrangements. You can do one without the other. Not sure how amicable things are but the mire you can do at mediation the more you save on legal bills.
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