Divorce is hard at the best of times. However, in addition to dealing with the heartache and distress of a divorce many clients are also faced with the immense anxiety of the depletion of the ‘ matrimonial pot’ by the threat of their spouse being declared bankrupt. Once your spouse is declared bankrupt all of your spouses assets will be vested in the Trustee in Bankruptcy and will not be available for distribution as part of the financial remedy.
What if the threat of bankruptcy is as a result of a deliberate attempt by your spouse who is dealing with their finances in a way that could lead to his/her bankruptcy or declaring themselves bankrupt? If this is the case then it can be dealt with by making an application for the bankruptcy to be annulled on the basis it was created to defeat your claim for financial remedy in the divorce process.
But what about the situation where the bankruptcy is genuine? In those circumstances, it becomes a race against time for action to be taken to protect as much of the your bankrupt spouses assets as possible so that it will be available to be paid or transferred to you i.e. the protective action must be taken before your spouse is actually declared bankrupt.
As our client our main aim is to obtain an order which will put you, in the position of a secured creditor. This can be done by e.g. obtaining a freezing injunction which means the money must be paid into court and will not be a part of the bankrupt spouse’s estate.
As our client our main aim is to obtain an order which will put you, in the position of a secured creditor. I cannot stress enough the importance of getting the wording for such an order right but if done properly it will put the you in the position of a secured creditor which means the terms of the order can be implemented and the money or property will not go to the Trustee in Bankruptcy
An alternative is to obtain a freezing injunction which means the money must be paid into court and will not be a part of the bankrupt spouse’s estate.
If you are in a position where your spouse may file for bankruptcy or you would like more information about family law or divorce proceedings please contact Alberta Tevie on 020 8956 2655 or e-mail at firstname.lastname@example.org