Hi, Thank you. The bottom line is the debt is entirely in your wifes name as you were released from it by virtue of bankruptcy then all she is doing is burying her head in the sand. The creditor will eventually just seek to enforce on her and worse case scenario make her bankrupt.
It wouldnt be illegal for you to pay towards this debt, as any payment would be made from your post bankruptcy estate.
If you have the means have you considered whether you could buy the house off her and take over the mortgage at a discount?
I look forward to hearing from you.
Hi - thanks for you answer, although I already know that she is liable for the full amount. My question is about whether this debt can be brought up as 'matrimonial debt', and whether a family court judge can instruct me to pay this back, either direct to the creditor or via my wife as maintenance payments, as part of a financial order.
My understanding is that if a family judge orders this, then effectively he is overturning my bankruptcy.I also understand that it would against my obligations to the Insolvency Act for me to pay this debt, and NOT any others that were included in my bankruptcy as that would be seen as favouring one creditor over and above the others.And finally, I understand that if I was ordered to pay this debt (despite already being made bankrupt for it) then I should be paying that money to the official receiver who will distribute it to ALL of the creditors.These are the points I needs clarification on - and ideally from someone with experience of both family law and insolvency law, and how they interact with one another in the court system.
(There is no house - that was voluntarily repossessed around the same time as bankruptcy.)
Hi - thanks for your response.
However, I think you may have misread my question. I have a suspicion that during the ancillary relief process, my wife will raise this joint debt that still exists (albeit ONLY she is liable for, because of my bankruptcy) as 'matrimonial debt'.
To simplify things, this debt my wife has is £28k. I currently have zero debt. And as there are no assets on either side of the marriage, she will argue that I owe her £14k, in order to 'even out' the matrimonial pot.
So, my question is really about whether I can argue that debts that were included in my bankruptcy, and which still exist because my wife hasn't done anything about them in 6 years, can or should be included in ancillary relief negotiations, given that a judge has already decreed that I have no liability for them under the Insolvency Act.
I'm extremely worried that a court will decide that I am now in debt to my wife, and that I will be ordered to pay her maintenance to cover my theoretical share of the £28k - even though this debt was already included in my bankruptcy.
Any thoughts on how I can argue this?
Again, thanks for your response.
Do you know which specific points of law (insolvency or family) that I can refer to in order to strengthen my argument that these previously joint debts should NOT be included in any negotiations leading up to a financial order?
It just seems like such a complicated issue and I'd like to make sure I have everything in order before addressing the issue.
OK, fair point.
So, just to clarify, you think that I am able to argue that even though my wife is currently solely liable for this debt, it should NOT be included in any financial negotiations because my interest in it was dealt with via my bankruptcy?
Yes, thanks - I've actually spent quite a lot of time over the last week or so trying to get my head around the Insolvency Act.
I'm just finding that the family lawyers I speak to aren't sure of my position and suggest that I MAY need to settle this debt with my wife, while the insolvency specialists say the opposite and suggest that this debt should NOT be included in financial negotiations.
That's why I'm so unsure of my position - I'm yet to get a definitive answer that everyone can agree with!