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Cookie1975
| 31-08-2008 05:02 PM |
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Joined: 31 Aug 2008 Posts: 5 | Hi, My girlfriend was living with a previous partner and left him last June and has not lived at their jointly owned property since. She is paying most of her debts on a reduced payment scheme arranged with each creditor. She forgot about one of her debts and this particular compant have made her bankrupt !!! they claim to have served papers on her personally but this is impossible as she has not lived at that her address for well over a year. We think her ex kept all the court letters and he did not give her one untill the one from the IP turned up last week. She is currentl being bought out of the property by her ex to the tune on £25k but she owes approx £22k out. Can some one advise on the following: 1. Can they make her bankrupt without her knowing and can this be overturned? 2. Will she have to use her capitol from the sale of her property to pay her debt or will they take a reduced figure? this money was designed to set her up after the split. 3. She owes people money like myself and her mother money which we have had to borrow for her. Can she repay theses debts first ? |
| paladin | 31-08-2008 07:40 PM |
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Joined: 06 Jun 2007 Posts: 93 My Profile | Hi Cookie I am afraid your girlfriend can be made bankrupt without her knowing about it, provided the creditors sent the official forms to her last known address and followed the correct steps when obtaining the bankruptcy order. The law assumes that your girlfriend would keep her creditors up-to-date about her residential status. If the steps were not followed correctly then the bankruptcy can be annulled. Your girlfriend should contact the official receiver (OR), the person who administers the bankruptcy. He will take control of her finances draw up a list of all creditors and then contact them to get figures for the outstanding debts. He will then realise any assets she has, without making her destitute, and return the money back to the creditors. You can be listed as a creditor. However, you may not receive the full amount owed to you from her estate. Hope this helps. P |
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Cookie1975
| 31-08-2008 09:11 PM |
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Joined: 31 Aug 2008 Posts: 5 | Cheers for that, If she has signed the house over before she meets the OR does she have to declare it or can she pay off the people she owes ? Matt |
| DW George | 31-08-2008 11:20 PM |
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Joined: 01 May 2007 Posts: 186 My Profile | Hi Cookie Unfortunately you cannot try and hide any assets from the OR. Your girlfriend is at risk of committing a criminal offence if she signs over the house to you in an attempt to avoid her financial obligations. In any case a simple search of the Land Registry, which the OR will do, will tell the OR when and to whom the house was signed over to. Her equity can be bought out which in general avoids the sale of the house. But since she doesn't live in it then this is pointless. Everything you think of to try and avoid her obligations under a bankruptcy has been tried and the OR is wise to this. So just be upfront. Good luck George |
