Ex-husband going Bankrupt will we loose family home

buzzin

Ex husband has just informed me he is thinking of going bankrupt. I am worried I will lose the family home which he agreed was mine and the kids when we seperated 5 years ago. 3 years ago I went to get his name off the mortgage, but was told his name could not just be taken off the mortgage, I would have to get a new mortgage in my name. I got new mortgage and ex signed a Disposition, Renunciation of Occupancy Rights, Statutory Declaration of Solvency and Deed. All paperwork was going through when solicitor informed me that there was a deferred payment due to local housing authority who we had bought the house from. Housing authority saw this transaction as a house sale and wanted their money, even though I already owned most of the house. I couldn't afford to have all this deferred payment added to my mortgage so everything fell through. So ex husbands name is still on mortgage even though I pay everything (even £500 solicitors bill for something I never got!!)
I am so worried I will lose family home it is making me ill, I am so angry with my ex as I have worked so hard to keep this house and spent my hard earned cash on making it a comfortable home for my children to grow up in. I only have 5 years to pay on the mortgage and then I was hoping to get a mortgage to pay back the deferred payment as I have 2 jobs and have just started a small business which I run from home.

Can anyone please tell me if my ex does go bankrupt will I be made to sell my house???

I'm in Scotland, so it is Scots Law, which I know can be diferent from rest of uk

addicted_to_plastic

hi,
i think you should contact someone for advice as soon as possible, cccs & cab can help for free.
If your ex is still on the mortgage you will need to find out where that leaves you and your children.
They will need information on the current value of your home and the outstanding amount due on your joint mortage to establish the equity in your home.
As i understand it,only your ex husbands share of equity will be be sought as a result of sequestration, but they will want this paid in full or in installments, by either a friend/family member or by the sale of the property.
I think you get three years to pay, but someone must reach an agreement with his trustee within the 1st year after sequestration.

Please check this with an expert though........both myself and my husband were recently sequestrated in Scotland , we needed a family member to agree to pay this for us in that time scale if we want to keep our home. This has still to be finalised, so i don't have more info on the process.

Do you have any other joint debts? Loans etc
If you do mention these when getting advice.

The numbers for free advice appear regularly on these pages, please phone someone today, the sooner the better......some arrange to phone you back for an interview at a later date.

It seems so unfair you have been dragged into someone elses mess!
Good Luck sorting things out

Waspeze

Here's the link to CCCS in Scotland

http://www.scottishdebtline.co.uk/media/2002/02apr09.htm

philnicandamy

CCCS have a version of their site aimed at people in Scotland.
http://www.scottishdebtline.co.uk/

And their is a forum with a sub-section on debt in Scotland here:
http://www.debtquestions.co.uk/debt_forum/

Plus the scottish section of National Debt Line
http://www.nationaldebtline.co.uk/scotland/

Richard_S

Hi buzzin,

You really do need to take professional advice on this and if you feel as though their answers are not in depth enough, then it may well be worth taking the advice of a solicitor specialising in insolvency.

I don't know very much about the laws of sequestration in Scotland, but in England and Wales if a transfer of property was made at a time when the person transferring the asset was solvent then the O.R doesn't have a claim on the property.

It is a complex area and there are time scales involved, that alter the situation. Generally speaking, the longer ago the asset was transferred, the less likely it will be that the O.R has a claim.

The contact details to the Debt Charities are in my signature, but please seek legal advice if you have any doubts about the quality of the advice you're getting.

Regards

Richard

glasgowgenie

Hi Buzzin

I work in the insolvency field and will try to point you in the right direction.

The good news hopefully is that he has not been declared bankrupt yet. As soon as he does this, then the landscape changes dramatically.

The fact that he is on the mortgage is irrelevant. The concern is that he is still on the title deeds. Is he?

If he declares bankruptcy then one half share of the net equity will go to his Trustee for the benefit of creditors. Regardless of the prior agreement etc, if there has been no legal transfer ( ie registered ) and he is still on as joint owner then this is the position.

If you wish, I will do an analysis of the position free of charge and hopefully at least point you in the right direction.

Best advice for now is don't let him go through with the bankruptcy as once awarded, there is no way back.

Mark

buzzin

Thanks everyone for your help
I'm so glad I have been able to remain on good talking terms with my ex (mainly for the kids sake) as this has made things easier
I have spoken with ex and offered to help him to sort out his finances (not financially) if he didn't go bankrupt just yet. As he doesn't want to see me or the kids homeless he has been very honest with me and let me go through all his paper work etc. He was in a right mess financially and mentally, got him off to doctors to get help for his depression and have spent days going through his finances. He told me he had over £25,000 of debt, but after working everything out it is £21,604, that put a wee smile on his face. I have now just done Income and Expenditure sheets and wrote letters to all his creditors for him, offering payments that he can afford. Keeping my fingers crossed his creditors accept payment offers. He has promised to keep me informed and not go bankrupt.
I'm still going to get some legal advice though,

hypno06

Buzzin that is a really positive post - it will be a long journey, but provided you can work together (even though you are apart) it looks like you will get through.

Good luck.

Richard_S

Hi buzzin,

The critical advice you need is the timescales relating to when your ex became insolvent, and the impact that's likely to have on the O.R having a claim on your house. If you know, for example, that your ex only needs to wait another 18 months and then the O.R won't have a claim, then it gives you something to aim for.

It's admirable that you're both sorting this out together, but there's always a chance that your ex could become overwhelmed with his debt problems and just go ahead with his bankruptcy. By the sound of it, he is a thoughtful and considerate guy, and if you're fully conversant with the facts then you should both get the outcome you deserve.

Please, please, take the appropriate legal and/or professional advice. Some planning and spade work now could avoid a mountain of problems in the future.

Best regards

Richard

fiveyearplan

I agree with Richard, get your legal advice then if he does 'jump ship' you know where you stand. Hopefully that won't happen and its good that you're working together.

loveandlight

Not got much to say as far as bankruptcy is concerned in Scotland, but just wanted to say I think you are doing a fab job providing a good home for your children and doing your best to earn as much as you can. You are a real inspiration to lots of other families out there. Well done.