My ex wife is now bankrupt after a business failure. She was made bankrupt by her ex-employer, a brewery, and the officials have asked for our divorce agreement. We divorced nearly 4 years ago and I gave her a share of my house, a share of my pension plus £800 a month. Am I at risk ? Will my settlement be revisited to help pay creditors?
Taking it from the top: The pension will not be affected, but the £800 per month will form part of her income when the court assesses whether or not she has to contribute on a monthly basis in an Income Payments Agreement (IPA) over the next three years. An IPA comes into force when it is determined that the individual has surplus income after all expenses. This is the single most important aspect of the bankruptcy procedure, as a bodged Income and Expenditure will cost the person dearly.
Regarding the house, this could be an issue if there is equity in the property. The Official Receiver will investigate her interest in the property and its value, as it is the OR’s role to liquidate assets and distribute the funds to the creditors. If the property has no equity, this will not be a problem. Having said that, if the conditions surrounding the house were specified in the divorce agreement, it is unlikely the Official Receiver will intervene.
Feel free to call us on 01425 600129 with any other questions or for bankruptcy help. Questions may also be posted on our Home Page. Please note, court appearances are no longer required for bankruptcy as everything is processed online.