Bankruptcy

[mikey13]

I am facing bankruptcy, I have searched the web to learn more about it but nothing tells me what it means for my family.
will this effect my wifes finances, can they take her assets i.e car/savings
can they take my stepsons asseset i.e. computer?

[Kirstyhev]

Hi, I am pretty sure that this will affect other people that you live with, for example they may have problems obtaining credit etc. Because I am pretty sure (correct me if I am wrong) that the bankruptcy goes against the address you live at.

[CheekyChops]

A PERSON goes bankrupt, not the address.

No they can't take anuything that doesn't belong to you so your stepson's computer will be safe.

If it is just you going bankrupt and not your wife then her car / savings should be safe but don;t get any ideas about putting your assets / cash into her name to try and protect them as you will be found out and they come down quite hard on this.

Do you own your house? You could possibly lose this.

[Kirstyhev]

Sorry, I may have got confused. I am sure that my friend had problems getting credit because of her address (appartently her sister had gone bankrupt).

I found the following link though:

http://www.blurtit.com/q189342.html

[moomintroll1]

Although the bankruptcy would be registered against you, credit files also show information about other members of your family who live at the same address (they simply take this as being anyone living at the same address with the same surname).

So although your wife would not be listed as bankrupt, your bankruptcy will show on her credit searches (and on your stepson's if he shares your surname). If she applied for credit, it would be up to the individual lenders to make up their own mind about whether that means she would be a greater risk as a borrower, but most will likely take that view.

Credit files are also linked by joint borrowing, so if you and your wife have any joint accounts or cards, that would also link your files together even if you lived separately (perhaps uncommon with husband and wife, but it happens with business partners, for example, who have joint business borrowing but are otherwise not linked).

This would not, however, give anyone a claim over her own assets.

[themas]

1. Credit Reference Agencies should not put information on an individual's file just because they live at the same address as someone else. The files should only be linked if there are joint debts, so if you & your wife have joint debts (e.g. a joint mortgage) her file will be affected. If your finances are entirely separate then neither her file or your step-son's should show anything about your debts. If they do, a notice of dis-association should be sent to the CRA to get the file corrected.

2. Your wife's & stepson's assets are safe unless the Official Receiver can show that you bought expensive gifts at a time when you knew (or should have realised) that you were insolvent. In practice this means that unless you have done something pretty outrageous there is nothing to worry about.

3. If your wife is working it is possible the OR will want to take her income, or a part of it, into account in deciding whether you have to make any payment at all to your creditors in the bankruptcy. This can become a bit complicated and you might need some advice from a free agency such as CAB or any other local debt advice centre.

4. If you haven't already done so, go to the Insolvency Service website and download the various booklets. They give useful information.

[mikey13]

Thanks for the advice,
We live in a housing association flat and do not have any joint accounts or loans, the debts are in my name as i took them out in my early 20's (about 6 years ago) and my step-son has a different surname to me.
I can face whats comming but am relieved to hear they will not have to suffer too much.

Thanks again