Challenge:

John Williams was undergoing a Personal Insolvency Arrangement (PIA) while simultaneously navigating a divorce. His former wife had an equity interest in their family home, and the Family Court proceedings ran alongside the Personal Insolvency process, requiring coordination between legal teams and the Personal Insolvency Practitioner (PIP).

Solution:

Through a structured agreement, we facilitated the transfer of his ex-spouse’s interest in the home to John in exchange for a legal charge against the property, making her a secured creditor. This reduced the net equity, bringing it below the Housing Agency’s threshold for Mortgage-to-Rent (MTR). The PIA incorporated MTR, allowing John to remain in the home.

Outcome:

A fair resolution was achieved, allowing John to retain his home while ensuring equitable compensation for his ex-spouse. Our efficient management and coordination between the divorce and insolvency processes led to a swift resolution, enabling both parties to move forward without protracted proceedings.

Challenge:

After his divorce, William remained financially bound to a commercial loan where his ex-wife was a co-borrower. As part of the settlement, he had indemnified her for this debt but was unable to service it, leaving him in a state of insolvency.

Solution:

During the PIA process, we listed his ex-wife as a specified creditor for a contingent debt related to the indemnity. She failed to submit a Proof of Debt or vote on the proposal. As a result, the indemnity he had granted her was effectively nullified once the PIA was court-approved and successfully completed.

Outcome:

This novel approach effectively restructured a liability set out in the existing Family Court order. By incorporating the commercial debt into the PIA and addressing the indemnity, we successfully resolved the liability issue, offering significant financial relief to William.

Challenge:

A Family Law Court directed Barbara to seek advice from a PIP. She co-owned her former family home with her ex-partner, who had a PIA. Despite joint mortgage liability, Barbara was financially solvent and did not qualify for a PIA, but banks refused to approve a new mortgage while she was tied to her ex-partner’s home, leaving her in limbo.

Solution:

We crafted an expert witness report for the Court. Our key finding was that a PIA was not suitable for Barbara due to her financial solvency. This report provided the crucial evidence needed for the court proceedings.

Outcome:

Our report led to a successful ruling for the sale of the former family home as part of the divorce proceedings. As a result, Barbara’s liability was eliminated, enabling her to qualify for a mortgage and secure a home with her new partner and child.

Challenge:

Mary encountered significant challenges in her divorce due to her uncooperative ex-husband. His obstructive behaviour made it difficult to finalise her PIA, which included a vital proposal to transfer his interest in the family home to her.

Solution:

We successfully facilitated the inclusion of a clause in the Family Law Circuit Court order. This clause allowed the County Registrar to sign execution documents on behalf of the ex-husband, due to his consistent failure to comply.

Outcome:

The strategic manoeuvre ensured the property transfer could proceed without his direct involvement. Mary was able to execute the terms in her Court-approved PIA, overcoming the delays and allowing her to move forward without unnecessary setbacks.