Author Topic: £600,000 debt, consent order, divorce ...HELP PLEASE  (Read 1661 times)

gokwan1234

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£600,000 debt, consent order, divorce ...HELP PLEASE
« on: Jul 18, 2011, 01:08:00 PM »
Hi,
My partner has had a very messy divorce due to there being so much debt (around £600,000). This resulted in a consent order being set up which stated that the ex has to pay the debt off. To do this the ex was given the marital home, a freehold business and the proceeds from another business. The profit from the business was to pay off the debt. A management company were dealing with the payments however, it has come to light that the debt hasn’t been paid for six months and two mortgage payments have been missed. The family home is now home to the ex and new spouse (who incidentally is the divorce solicitor who dealt with the divorce & consent order!) The mortgage (and a secured loan linked to the house) is still in my partners and ex’s name however, the consent order states my partner has no right to the house. The rest of the debt is from credit cards where my partner was the main cardholder.  The concern now is that although the consent order stipulates that the ex pays the debt because it’s in my partners’ name we fear that the debtors will come after us. Also we have been told that the business has been transferred from the ex’s name into the new spouses name so she no longer owns the business (although we have no evidence of this at the moment). With hindsight it seems the consent order has so many loopholes but as we have no legal knowledge we relied on the solicitor to advise us. Is there any come back on this and can anyone advise us what to do now.

James Falla

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Re: £600,000 debt, consent order, divorce ...HELP PLEASE
« Reply #1 on: Jul 18, 2011, 02:19:41 PM »
Hi there gokwan1234 and welcome
 
Unfortunately we are not really in a position to give you specific legal advice a to whether the debt is still owed by your partner or not. As such, I am not sure whether your partner can ultimately be held responsible for repaying any of the outstanding debts in their name or a mortgage shortfall if the marital home was repossessed. My suggestion is that you go back to the solicitor that your ex used and ask them whether this could happen given the debts do not seem to be being paid as agreed under the consent order. If the answer is that your partner could be still held responsible, given they now has no assets and nothing to lose, they could declare themselves bankrupt and thus be rid of the debt once and for all and start afresh....
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gokwan1234

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Re: £600,000 debt, consent order, divorce ...HELP PLEASE
« Reply #2 on: Jul 18, 2011, 02:57:14 PM »
Hi thanks for the reply,
 its not possible to ask the solicitor that the ex used as the ex is now married to the solicitor that drew up the consent order however, my partner has made an appointment to see the solicitor that was used on my partners behalf.. While I appreciate you can't give any specific advise I wondered not who is responsible for the debt but if there was any come back on the consent order. The asset that was to be used for the debt repayment is the business ...it may or may not still be owned by the ex still . However, I wondered if  the asset was signed over to the spouse does that contravene the consent order . The consent order seems to have taken all my partners assets but given no security that the debt would be paid. Is it possible to do anything to correct this.
Thanks again for your help.

James Falla

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Re: £600,000 debt, consent order, divorce ...HELP PLEASE
« Reply #3 on: Jul 18, 2011, 04:49:23 PM »
Hi there
 
Absolutely right, your partner should speak to the solicitor who was origionally acting on their behalf. As you say, it would be of little or no use to try and speak to the ex's solicitor. In terms of the consent order, it is the solicitors advice you will need to get. They should be able to explain the terms of the consent order and what security or otherwise that it gives. Unfortunately I am not an expert in this area so am not able to offer any advise on it. Hope you get some positive advise from the solicitor.
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