Questions and Info relating to Property Issues inc, Charging Orders and Repossession

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#207707 my ex partner offered me £35,000 for my share of our house in sept 07 i accepted it although my solicitor told me it was a very poor offer i should have received at least 75kbut as the ex was extremely violent and i just wanted to get out of his life i accepted and moved out. the funds should have gone into my account in jan 08 but he refused to pay he came up with several excuses so therefore my solicitor said we should go to small claims court for a judgement , so in june 08 we were awarded the judgement my ex didnt show up at court , the court sent him a letter saying he had 14 days to pay, he didnt pay so i sent him a statutory demand .
he then appealed against the judgement and asked the court to set aside the s.d we went to court in sept 08 where my ex accused me of causing 10 thousand pounds worth of damage to the house this was totally untrue and thankfully the judge asked for proof and my ex had nothing on me .
he once again was told to pay me the money and the judge also told him that the statutory demand would not be set aside the judge told me that if my ex still didnt pay me the money then my next step was to make him bankrupt so this is what ive just started, ive had to pay £605 to file the bankruptcy petition and £100 to have it served on my ex , the court case is scheduled for feb 09 , is there still a chance i wont get my money ?
there is £180,000 equity in the house so he has the money to pay me but he just doesnt want to pay me .
please can anyone advise me if i'm doing the right thing ?
many thanks
User avatar
By Ransid
#207738 I don't think this forum is really for those seeking to recover debt from someone but I'll respond as best I can.

I really hope that you've taken advice from a solicitor before doing this (preferably one that understands bankruptcy).

Bankruptcy is a class action.

That means that if you are successful in making someone bankrupt you simply put yourself alongside all the other unsecured creditors to get paid from the assets realised in the bankrutpcy after costs (which won't be small).

You are not treated as a super creditor and get money ahead of everyone else. It's a collective process.

If he has lots of other debts then you could just get a small piece of the action eg you say he has enough equity to pay you, but what if he owes £350,000 to others.

I think most solicitors would suggest that bankruptcy is a last recourse particularly if there are clear assets to attack - certainly I doubt any would say it's a route for debt collection, and the courts take a dim view of it being used as such or as a lever for payment.

The judge has rightly said that a statutory demand is the first step in the insolvency/bankrutpcy process. that doesn't mean he's suggesting that you should do that (at least I hope not).

If there is clear equity in the property you could try to attack that as an individual creditor (eg by a charging order?) at least you'd get some security that way.

I STRONGLY suggest you take some advice as to the implications of what you are doing - your post reads as if you haven't or don't know.

Yes he could decide to pay you rather than be made bankrupt, but you need to consider what will happen if he doesn't and is made bankrupt. you might (I stress might) be putting yourself in a worse position.

It might turn out OK, but there are risks involved. certainly if he's made bankrupt don't expect your money for a long time, not least because a trustee can't enforce a sale for 12 months anyway.
User avatar
By Ransid
#207750 Forgot to say
As you are the petitioning creditor there are also potentially other documents you have to file shortly before or at the hearing. If you are not represented and are instead dealing with this yourself then, whilst there's no reason not to, you may be getting out of your depth. At a mimimum review the process in Chapter 2 of the Insolvency Rules 1986 and look at the guidance from the Insolvency Service ... omeone.pdf

Having issued the petition it isn't something that you can just walk away from easily either. If you want to withdraw it you have to apply to the Court to do so. If you don't deal with it and your ex defends it it can be dismissed by the court and potentially you could find costs awarded against you.

I really think you need to take some advice if you havne't already and as I said in my first post - I don't think this is really a forum for creditors wanting to take action to recover debts.

All the best
By jarronwood
#209653 Is the house in joint names then? Is your name still on the Title Register?

Your solicitor should never have transferred ownership to your ex without the money. Please tell me this is not the case since if he has then you have a right to sue your solicitor for gross negligence.