My partner and I have lived together for 14 months in my house. She is thinking of filing for bankruptcy. She has debts from her previous marriage, over claimed working tax credit and unpaid tax. She also has a penalty of the overclaim, is this classed as a fine in the bankruptcy world. How does this effect me. We are thinking of moving to Dubai in the New Year as I have a job opportunity out there. Due to islamic laws we may have to get married before leaving, does this changes my circumstances, if she has already filed. Will the 12 month bankruptcy period still run while she is out of the country or will it be suspended.
Hello, my name is Tony and I can answer this for you.
It doesn't matter whether you are married or not, the bankrutpcy will only take effect against her. If you own a property together though, her trustee in bankruptcy could force you to remortgage to buy her share of the property.
Other than that, it remains her debts, not yours. Creditors cannot look to you for payment of your wife's (or wife's to be) debts.
The 12 month period will still apply whilst she is out of the country, but she may need to attend before the Official Receiver or Trustee in Bankruptcy (initially, at least, following the bankruptcy) to explain all her assets and liabilities etc.
If this answers your question, please rate the answer for me. If you would like me to clarify or add to anything I have written, if you tell me, I would be happy to do that.
Thank you for clearing up most of those points, the outstanding one is the penalty for overclain classed as a fine, as fines are not seen as debts.
Generally how long does it take from filing for bankruptcy to to attend before the Official Receiver or Trustee in Bankruptcy (initially, at least, following the bankruptcy) to explain all her assets and liabilities etc.
Finally my partner has a car on lease, would this be removed as part of the bankruptcy, as she needs it to work as a carer.
Court fines are not written off even in bankruptcy and so these remain I am afraid.
A meeting with the OR/Trustes is usally within 2/3 weeks of the bankruptcy order being made.
If the car is essential to her job, or to get to work (i.e. through lack of public transport) then it should not be removed. Anything essential to the job cannot be taken away.