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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I was certified Bankrupt almost three years ago. The appointed

Resolved Question:

I was certified Bankrupt almost three years ago. The appointed trustee in my Bankruptcy has now given me notice of his intention to apply for possession and sale of my former matrimonial home(I left my wife and the home in March 2012 and divorced her for unreasonable behaviour, this being made Absolute in Sept 2012.)my former spouse still lives at the property and I in rented accommodation. I don't have a clue what happens next, can you help please?
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
How much is the house worth and how much is outstanding on the mortgage?
What other assets are there and are there any children involved?
Clare
Customer: replied 2 years ago.

Hi Clare,

I imagine the market value of the house would be around £170.000(but I have been gone for 3yrs with no access so can only imagine the condition it is in, as my former spouse was bad at housecare). The current Mortgage is around £98.000 with arrears of approx £10.000. There are no dependant children and no other assets(I did pay the deposit and all other legal costs and fees from my own personal funds when we baught the house though! This was around £40.000, not written into the deeds though!Can I still claim this?) My original Bankruptcy debts were around £38.000.

Expert:  Clare replied 2 years ago.
Hi
I am afraid any interest you have in the house now belongs to the receiver in Bankruptcy.
He will negotiate with your ex and offer her the chance to purchase your share of the property - if not then he will apply for an Order for Sale.
Your ex will receive half of the equity - the rest will go towards your debts
Please ask if you need further details
Clare
Customer: replied 2 years ago.

Hi Clare and thank-you. Can you tell me what happens with regard to the Mortgage arrears? Will I be debt free at the conclusion of this process, or will I still be held liable for any shortfall? The Trustee has also informed me he intends to seek an order against my former spouse in respect of the costs and disbursements he will incur in relation to the application. Can you explain the finer detail of this to me please?

I am of limited means and so my sole concern is that I will be free of debt at the end of this. I don't fully understand the in's and out's of any of this process to be honest and so your help is greatly appreciated.

Expert:  Clare replied 2 years ago.
Hi
You will be debt free at the end of the process (unless there are CSA arrears involved)
You will have no claim on any assets relating to this period - but any arrears are also gone!
Clare
Customer: replied 2 years ago.

Hi Clare, thank-you. By CSA arrears do you mean child support agency? With regard to the current mortgage arrears will they be included with the outstanding balance on the mortgage and taken out at sale completion by the mortgage provider before the 50-50 split is calculated? How does this work?

Expert:  Clare replied 2 years ago.
Hi
The only debt not included in the Bankruptcy is money due to the CSA
If the house is sold the mortgage is paid off in full and the costs deducted
Half of the monies will go to your ex - the rest will go to your Trustee
Clare
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