Author Topic: My Story (long - sorry) Help!  (Read 1665 times)

vodka needed

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My Story (long - sorry) Help!
« on: Apr 04, 2011, 08:35:38 PM »
I’m not sure all this is relevant but it gives some background into my situation and I would really appreciate any opinions people have on what course of action is best to take.

I met my ex husband at 17, we were both very young and he wasn’t always a nice man but I was too young, naive and smitten to see. We married when I was 19. In the 10 years we were married we accrued an astounding amount of debt (about £70k). Most of it went on him going out 4 nights a week (spending over £100 each night) and him having to have the latest electricals, cars and treating his latest woman. I did enjoy some of it though and we had 2 nice holidays. Anyway, we had to keep remortgaging and taking loans and credit cards. (some in sole names and some in joint names, I know this is really stupid but I wanted to save my marriage and couldn’t say no).
4 years ago (at age 29) I decided enough was enough and left the marital house with nothing but my clothes and moved in with a colleague. I immediately requested the joint account to be closed/frozen and we arranged who was paying what. I agreed to pay more than what I should as I was just pleased to get out.
The weekend I left he managed to withdraw all the money out of the joint account (taking it over £2000 overdrawn – the bank didn’t action my request to freeze the account and said they have no record of it) he also maxed out all his credit cards, buying clothes and withdrawing cash and booked 2 luxury holidays for him and his ‘new’ lady. The Monday after he started the procedure to start an IVA…
I saw a solicitor and started divorce proceedings, we agreed a consent order which stated that he could have the house (and contents) and the car. I was to get a policy pay out in Jan 2011 of £12000. The consent order also stated who was to pay each debt.
I have stuck to the consent order and have never missed a payment (or indeed any payment in my life). As he had an IVA, anything that was joint has defaulted to me and I have paid (getting 2 defaults on my credit report first though).
6 months after moving out I started a new relationship and moved in with him shortly afterwards. I pay half of his mortgage costs as rent and pay the food bill.
I don’t earn very much (about £22000), and after I have paid my bills and minimum payments I have about £100 a month left (I try and make extra weekly payments off my credit card when I can, even if it’s only a pound or two). I have lived like this for 3.5 years.
Late last year I discovered I was pregnant. (Please no judgements, it was a bit of a shock but very wanted). I was terrified about how I would cope but with the £12000 policy paying out in Jan, the timing couldn’t have been better as it would have paid my bills whilst on maternity leave.
In January the policy paid out – to my ex husband, and now I can’t get hold of him, he won’t return my calls or texts and I don’t know what to do.
He has also moved out of the jointly owned house, changed the mortgage to interest only (paying about £90 per month) and is renting it out unofficially to a friend for £500.
I really don’t know what to do. I think my only option is bankruptcy, but I am so embarrassed. I have worked so hard over the last 4 years to pay all this debt off. It just seems as though I have wasted thousands and thousands of pounds trying to do the right thing, and it will all be for nothing. I know I need to get past this though and I have to put my child first.
I have some questions though if I do go ahead:
  • What will happen to the jointly owned house? Will he loose it?
  • My credit card isn’t maxed out, would I be able to buy a cot and pram etc on my credit card and possibly asda vouchers etc before going bankrupt? Or would the OR disapprove as the items would be on my credit card statement dated just before the bankruptcy?
  • How will the IPA be worked out? I’ll be receiving my normal salary for a couple of months and then I will only get approx £500 SMP a month (which isn’t enough, but my partner has been saving). But, when I return to work after my maternity leave would that have set a precedent that I can live on £500 a month and therefore will take any extra?
  • I’m so sorry this is so long. In a weird way it feels good to write it all down .

    Thank you for reading

    James Falla

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    Re: My Story (long - sorry) Help!
    « Reply #1 on: Apr 05, 2011, 04:28:45 PM »
    Hi there
    Are you still a joint owner of the house with your ex? If so and you declare yourself bankrupt your title to the property will pass to the official receiver. If there is any equity in the property, the OR might consider the forced sale of the property to release it. However, if there is no equity it is unlikely that it will be lost although the OR can hold on to your title for 2 years and 3 months to see if the equity situation changes..
    In terms of your credit card, you can use this to withdraw cash to pay for your bankruptcy which will cost £625. Other than that you should keep expenditures on it to a minimum of possible. However if you can not avoid using it, there will probably be little or no issue. Most people have maxed out on all their cards by the time they declare themselves bankrupt.
    Any IPA will be based on your ability to pay. If your income is based on benefits such as maternity pay, I think it unlikely that an IPA would be issued. Once you return to work and your income increases, your circumstances will be reviewed again. However your expenses will have changed so this will also be taken into account before you are requested to pay anything. And don't worry, your ability to survive on just your maternity pay will not set a precident for the amount you need to live on down the line... :)
    Debt Expert & Author


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    Re: My Story (long - sorry) Help!
    « Reply #2 on: Apr 07, 2011, 01:02:16 PM »
    Hey James!!!......

    This is a very neat information........Thanks for helping others!!!

    James Falla

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    Re: My Story (long - sorry) Help!
    « Reply #3 on: Apr 08, 2011, 03:21:28 PM »
    Its my pleasure FinanceGenie
    Thats what we are here for :)
    Debt Expert & Author