tad_admin Staff asked 6 years ago

I have been made bankrupt earlier this year and have recently got married just prior to my spouse being awarded a divorce settlement of £30,000. Will my bankruptcy affect this settlement I.e. Will my creditors be entitled to some or all of this money, as we got married before the settlement?

4 Answers
answered 6 years ago

Your spouse may wish to take specialist legal advice about protecting her assets, she is not bankrupt and if she has received money from a divorce settlement then it would be unusual for you to have any claim, or interest, in her money. That is the way that your Trustee looks at assets, if you are entitled to something then it is automatically available to the Trustee for the benefit of the bankruptcy.

There may also be some previous transactions that the Trustee has identified that they can claim against your spouse to claw back money, if perhaps you had borrowed £40,000 previously and given it to your spouse, for less in return and then the debt was part of your bankruptcy there may be possibility of pursuit.

If you are in any doubt about this then you may need to speak to your Trustee to see if they have any claim against the money

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.

answered 6 years ago

Your bankruptcy should have no effect on your new spouse, provided that you have no joint assets or debt in common.

answered 6 years ago

What if the money went into a joint account, would my spouse be better off putting it into a separate account?

answered 6 years ago

As above, plus you can find more information on bankruptcy and divorce from http://www.bankruptcyclinic.co.uk/blog/bankruptcy-and-divorce