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Max Lowry
Max Lowry, Advocate
Category: UK Bankruptcy Law
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Experience:  LLB, 10 years post qualification experience
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My ex-husband has been declared bankrupt.Under the court order

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My ex-husband has been declared bankrupt.Under the court order from our divorce he is supposed to pay me periodical payments in lieu of being unable to raise a lump sum,for another 14 years and there is around £80,000 outstanding in total. I have a charge on his property as security for this but have been told by the official receiver they are not interested in the property at this stage as there is no equity in it.My ex husband is a consultant doctor who had a large private practice.What should be my next step regarding the pursuit of these monies;if any? I emphasise it is not maintenance payments but a lump sum by installments. many thanks, cath
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Customer: replied 3 years ago.

i need an answer to this question please;i can wait for a response,just keep me informed please? many thanks


Thank you. We will continue to look for a professional to assist you. Please let me know if I can be of any further assistance while you wait.

Hi, welcome to the site. My name is XXXXX XXXXX I will help you with your question.

 

Do you have the total amount secured on the property, the whole £80k, which he is paying in instalments?

 

Max

Customer: replied 3 years ago.

It was originally 97k; he was supposed to pay monthly instalments of £750 for 20 years;this was taking into account the courts interest rate. He has paid on and off since 2007. An assessment by probitas,the company dealing with an application for an iva [which was turned down] prior to the bankruptcy stated he still owed me £80k which i would not dispute.The divorce was acrimonious and my barrister wanted the charge put against his property as he was and is a notoriously bad payer of debts.


Thankyou so much for any help with this matter.

Okay. But do you have all the money secured on property via a charging order or some other form of charge?
Customer: replied 3 years ago.

Yes;there is a charging order and a court order;the wording related to the charge being for the amount outstanding and to be agreed between the parties assuming some of the payments had been made,which they have. There are another 2 charges on the property however; first charge is scottish widows £550k mine is 2nd charge £97k ,now £80k 3rd charge rbs £53k. The property is worth about £500k ,so seems that is the problem.

Yes, that does seem to be an issue.

 

Usually, you would simply proceed to enforce the charge, which you would be applying to the court for permission to sell the property. That might not get you very far here.

 

Otherwise, you could relinquish your security and seek to prove in the bankruptcy and with the other unsecured creditors. Whether you get anything back from this depends on whether he has any unsecured assets and whether there are other unsecured creditors. If there are other unsecured creditors then the amounts of their debts will affect what you get back in any bankruptcy.


Ultimately, if he doesn't have the money, the truth is, you're not going to see it. You can leave your security in place, hoping that as the property market begins to rise again, you will eventually see your charge being paid off in time and this might be your best approach.

 

I know this is not really what you wanted to hear, but I hope you will understand that I would rather try and be honest and accurate in any answer that I give you.

 

Max

Customer: replied 3 years ago.

Thanks nothing I wasnt expecting;one last question ; can I reapply to have the payments reinstated after the bankruptcy;as I am sure he will continue to earn and I believe the bankruptcy will probably only be for one year;ie effectively write off this years payments but then restart them after the bankruptcy? Can I have this enforced in any way? Many thanks

No you can't do this and that's why the security over the property is important. Your rights as a secured creditor will survive the bankruptcy but any unsecured rights will not.

So you can threaten to sell the property to redeem your charge post bankruptcy but if you waive that security you'll lose everything most likely.

Max Lowry, Advocate
Satisfied Customers: 1457
Experience: LLB, 10 years post qualification experience
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