Hi mr Brightside

If no trustee is acting under a trust deed, then there is no third party involvement with any jointly owned property. The DAS excludes the house, so there should be no issue there.

A lot will depend on what happens next I suspect. If she does nothing, then any divorce would run as normal. You should bear in mind that whatever happens, any debt in her name will not overlap onto you and will have no effect on anything you own or your half share in any property etc.

Mark

Thanks Mark,

You say it depends on what happens next. What could happen?
If a trust deed has been refused and a DAS revoked. What is the next step?

Her creditors will probably seek to recover their debt from her and may eventually take legal action to do so. If they get a court decree then they could look to arrest a portion of her wages if she is working, or funds in her bank account.

The house would only be at risk if she is sequestrated, in which case the trustee would have to try to realise her half share of any equity. Is there likely to be equity in the property?

However - we are probably getting too far ahead of ourselves here! Sequestration is always very much a last resort.

Hi thanks for your reply.
My wife has nothing in her bank. She is self employed and chooses not to work very much.
There is equity in the property.
What normally happens when you cannot get a trust deed and DAS is revoked?

Hi Mr Brightside,

Sorry to hear of the difficult position you are in from no fault of your own.

It will depend on your wife's creditors taking legal action and also what your wife's intentions are.

If a Trust Deed has failed and a DAS has been revoked then it looks like your wife is trying to deal with her debts. In that case, she could be discussing Sequestration with an advisor and may decide to proceed down that route as the last resort as her Trust Deed and DAS has failed. AS Kevin has pointed out, if this happens then a Trustee will be appointed to look at her assets and to try and obtain her share of the equity from the property you jointly own.

If your property has equity, the Trustee will look for 50% of this from either your wife or failing that from you. How much equity do you think your property has?

Your wife's creditors may eventually decide to take legal action against her but the last resort for them is always Sequestration.

Hi mr Brightside

As discussed above, if she does nothing then the position will remain as is. However I suspect if she has looked at a Trust Deed and also DAS, then the liklihood is that she may look at sequestration. If this was granted, then the Trustee would seek 50% of the available equity within the property.

If she does nothing, then it is likely her creditors will continue to pursue her and this could have an effect on the property via an inhibition or ultimately they may petition for her sequestration.

Mark

Hi,

I have over £400k equity in both our property's all of which I have paid for. My wife has never paid a penny towards them.

How would my wife benifit from bankruptcy? Will she still be entitled to the same things eg half of my pension in our divorce?

Will my property sell at a much cheaper rate due to bankruptcy?

Hi MB

It's another one where advice is difficult without a full review.

I would be amazed if a trust deed or DAS was proposed if her half share equity was in the region of £200k unless of course the debts were at a greater amount. From your most recent figures, the trust deed and DAS does not appear to make sense.

Mark

I have found all this info since is started divorce proceedings. She claims in her trust deed forms that she stays in a house which I own (not jointly which it is) she claims to earn
A lot less than she does, she claims to pay for many thing ( which of course she doesn't) nothing seems to mention our second property. Her trust deed seems to be for £33k
I am at a loss. We are not in contact at all.
I have paid for everything throughout our married life
Disaster!!!

She has been paying £365 a month towards a DAS before it got rejected.
I had no idea of any of this. Should I have been notified at any point?

Hi Mr brightside.

If the potential trustee didn't know about the jointly owned properties they would not need to contact you. Of course that would have changed when they did find out about the properties - which was likely - so it sounds like a good thing for you that the trust deed was rejected.

DAS doesn't cover the property so no need to contact you.

The DAS revocation is probably down to a failure to make the agreed payments, or non-compliance of another sort. The creditors are likely to start thinking about how to recover what's owed again at some point in the future.

Thankyou for your reply TDA,

Can you just confirm for me. When the Trust Deed was being formed I should have been informed? Would my signature have been required as both properties as jointly owned?

I have just found another Trust Deed application form. My wife has stated that she is 'living in property owned by husband' This is not the case!!! Although I have paid the mortgage for the last 23 years, the properties are in both our names. Why would she lie? what benifits would there be?

ps she has also made false claims about her income and monthly expenditure on the application form.