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Ask Clare Your Own Question

Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 33283
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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I had maintance arrears, went to court barrister told judges

Customer Question

I had maintance arrears, went to court barrister told judges I had no assets. However they found me guilty of culprits neglect , because I had had stat demands served on me and had received money in and payed off creditors before child maintenance order, got found guilty and sentenced to pay 25k in 28 days or serve 5 weeks in prison. Money was used to keep business trading,my own business. Can I appeal...???? What's the past case law, ...?? I had not stopped paying maintance just reduced amounts. Had been on high order of 2k per wife per month..[email protected]
Submitted: 3 years ago.
Category: Family Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question
I shall do my best to assist you but I need some further information first
When was the Order first made ans why did you not apply to reduce it?
Claire
Customer: replied 3 years ago.

Hello


 


Do you have an email address I can respond on? I have some attachments I was planning to include and can't see where to include them here?


 


Regards


Jeremy

Expert:  Clare replied 3 years ago.
Hi
You should be able to attach then using the paperclip option - ot the "tree"
Claire
Customer: replied 3 years ago.

Dear Sarah


 


Thanks for your response.


 


The date the original maintenance began are as follows:


 


I divorced Julia Kirsty Vaughan Jones on 12 April 2000 and as part of the divorce settlement it was ordered I pay £70 per week for the benefit of my 2 children with her.


I divorced Sandra Taylor on 10 January 2005 and as part of the divorce settlement it was ordered I pay £2000 per month for the benefit of my 2 children with her.


 


I applied for a variation in November 2011 and it took until 22 June 2012 to be heard. I informed the judge that my business had changed from a sole tradership to a ltd company from 01 May 2013, at which time I began taking a weekly payment for my £30,000 salary. As we were only a month in to the new trading status and the judge did not believe my lifestyle had changed considerably, he made his findings from the previous year, and advised me to apply for another variation after the ltd company had been running for 8-12 months and it could then be re-assessed. (At this time, the maintenance was reduced to £400 per month for Mrs Vaughan-Jones and £1500 per month for Mrs Taylor, with an order for arrears to be paid within 4 months).


 


Further to my next application 3 months after the hearing date, I had another hearing on 6 June 2013. At this hearing I advised my counsel that I was considering personal bankruptcy in the coming months due mainly to a personal guarantee I signed in 2008, with the asset it related to being unable to be sold by the bank. The bank have tried to claim the full value against me personally, and I conceded to enter judgement in May 2013. (Copy of court form showing amount and consent order enclosed). Due to the large loss, I personally decided to bankrupt myself in the next calendar month.


 


The limited company was trading at a loss situation since being incorporated in May 2012. The shares in the company were of no value. I subsequently sold my share in the business for a nominal fee of £100 to a colleague on 3 June 2013. (I also enclose the document S Taylor relied upon at the hearing which I was not permitted a defence to, and the magistrates order made after the hearing.)


 


My insolvency practitioner, Eric Diamond of Elliot, Woolfe and Rose (http://www.ewr.co.uk/) informed me as statutory demands have been issued by previous creditors when the business/businesses in my name, the creditors would have had the first right on moneys.


 


I look forward to your comments on previous case law and any chance of appeal. As I understand it, an appeal has to be lodged within 21 days of the hearing. If you require any information please do not hesitate to ask.


 


Kind Regards


Jeremy Taylor


 


Attachments:


1. S Taylor Documentation from hearing:


Attachment: 2013-08-20_123208_staylorbundle.pdf


2. Lombard Court Form:


Attachment: 2013-08-20_123419_claim_2ma40096.pdf


3. Lombard Consent Order:


Attachment: 2013-08-20_123445_lombardconsentorder.pdf


4. Most recent maintenance arrears order:


Attachment: 2013-08-20_123537_maintenanceorder_august2013.pdf

Expert:  Clare replied 3 years ago.
Hi
Could you confirm that you have indeed been declared bankrupt?
Has your barrister advised on an appeal?
Claire
Customer: replied 3 years ago.

Hi Claire


 


I have not yet been declared bankrupt but intend to be within the next calendar month.


 


I am still awaiting a response from my barrister.


 


Kind Regards


Jeremy Taylor

Expert:  Clare replied 3 years ago.
Hi
Most of the paperwork that you sent was actually not relevant.
The problem that you faced was as set out in the Facts and Reasons of the Magistrates.
You received a large lump sum and chose to pay other debts instead of the arrears due under the court order - despite the fact that the money due under the court order actually took priority over everything else - you were I am afraid not correctly led by the Insolvency Practitioner - who I suspect have also failed to point out that the Bankruptcy will not change your position so far as the Maintenance and the Maintenance Arrears are concerned.
The payments will remain due and the Debt will also survive the bankruptcy in full
I know that it is not what you wanted to hear - but it is the position that you are in and I remain uncertain why you were not told of this from the beginning
If you need further assistance please ask
Claire

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