Ex threatening bankruptcy

[Cazza7e]

Hi, I would just like to know what I need to do please. Ex-H has now threatened to file for bankruptcy. I need to know what I need to do to stop him, through the courts. We had a hearing last month where the judge decided to go straight to final hearing, as he hadn't provided evidence that his financial circumstances had changed in his application to reduce spousal maintenance, but no date has been set yet. I don't know if I can just write to the courts as to his plans and ask for any bankruptcy proceedings to be stopped before he forges ahead with it or if there is a form I need to file with the courts and if so which one? I do feel I need to get on top of this one quickly as if I don't do anything it may be harder to stop it later on. Any advice as always gratefully received.

Amazing what some will do to avoid maintenance

Bankruptcy won't affect the level of maintenance. Even if the PPO is replaced with a lump sum, as that lump sum wouldn't be provable in bankruptcy you could still go after him for it. Whether there's anything there though is a different matter.

What matters though is that it probably won't make much difference.

If he is made bankrupt then your home is at risk if he still has a share in it. He will have to make bankruptcy payments if he earns well so spousal maintenance may well go down. You can't stop bankruptcy as he will have to demonstrate that he can no longer service his debts and a court will decide this. After 3 years are up though he will have more disposable income again as no debts so things could even out. Bear in mind though that a court would not expect him to survive on very limited means in order to service your spousal maintenance.

@RedHelenB - this is an application to vary a spouse maintenance order. That means the final order was made some time ago, and all the capital split would have been dealt with under the previous order.

OP - if he intends to apply for bankruptcy purely to frustrate your claims there is a way you can become involved in the bankruptcy petition and argue against it.

Yes but if the house is still joint until the children are of age and then he gets some money out of it then his portion is at risk which could impact op. As would any transactions seen as under value.

Thanks for your input. Consent order was only made in February and he still hasn't done the equity transfer. Judge wasn't convinced he's circumstances have changed and was evident he wasn't honest about his income and said we're going to trial. The judge wasn't impressed with him at all. So he has now said he's going to declare bankruptcy but having read through the process of bankruptcy I don't think he'll qualify if that's the right word for it. He has the funds he's just choosing not to pay it. If I write to the courts advising them of his new scheme and ask for an urgent hearing can I do that?

Yes but if the house is still joint until the children are of age and then he gets some money out of it then his portion is at risk which could impact op. As would any transactions seen as under value.

Not at all. The order serves to alter the beneficial interests such that the property will no longer be available to the trustee in bankruptcy. Further, a court order is unlikely to be successfully challenged by the trustee unless the court was unaware of his debt situation. It's my guess that the court moved very quickly due to the risk of bankruptcy.

OP - I don't see why you feel there is a need to challenge bankruptcy. Maintenance is payable out of income. Income is generally unaffected by bankruptcy unless the trustee applies for an order that the debtor pays out of income, in which case existing obligations are taken in to account.

@Collaborate he has threatened to make himself unemployed as well, and move onto benefits although doing some research of my own he simply won't get them as his partner of 2 years is about to get nearly £1 million in her divorce

Well he could very easily quit work and live off her divorce settlement which would leave you with no spousal maintenance! I would look at maximising my own earnings if I were you as it seems he is very reluctant to pay you anything.

and move onto benefits although doing some research of my own he simply won't get them as his partner of 2 years is about to get nearly £1 million in her divorce

Benefits he is entitled to, if any, will be based on his own circumstances. If he has found a new and wealthy partner I don't think it will make any difference to benefits. However, if he quits work voluntarily he may have to wait a while before any benefits become payable?

Court Ordered Spousal Maintenance can be varied if circumstances change and becoming unemployed would be a valid reason to stop such payments. Even if Courts were aware that he has quit voluntarily how can they force him to pay money he does not have?

If someone is determined not work and has a wealthy partner to live off I think you have had it. So follow the advice:

I would look at maximising my own earnings if I were you as it seems he is very reluctant to pay you anything

Good luck. Astonishing what some people will do to avoid maintenance.

If I remember correctly, the CMS can decide that someone is still liable to pay at the original rate if they believe someone has purposely made themselves unemployed to avoid paying maintenance. If the CMS can do that, I’d imagine the court would do the same. Bit silly of him to tell you that’s his plan.

5Makes9

If someone has zero income where do they get the money from to pay maintenance?

If someone has zero income they are assessed as having to pay nothing. If their income is up to £7 a week they pay their income. Between £7 and £100 they pay £7.

If someone has zero income where do they get the money from to pay maintenance

By getting a job again and/or selling assets.

The law applying to spousal maintenance is interested in earning capacity rather than actual earnings. If someone deliberately makes themselves jobless in an attempt to avoid spousal maintenance they may find that the courts aren't as sympathetic as they hoped.

A court can't make someone work and if they are bankrupt they would have no assets. If they are being supported by a new partner then they will be in clover and ex wife will have to look out for themselves. Unfortunately too many men on these pages do exactly that!