beneficial interest in partners house.

fermi

Puppy_Boy wrote: »

i need to ask a question though. when you go backrupt do you have to pay a percentage of your salary each month for 3 years? i'm sure i read that somewhere!

You may be asked to pay a percentage of surplus income after reasonable living expenses, if you have a surplus of £100 per month or more. That would run for 3 years, and the amount can be varied if your circumstances change.

You can read a fuller explanation here:

FAQ - Income Payment Orders / Agreements

Puppy_Boy

thank you very much fermi. i,ll have a look!

Richard_S

peb wrote: »

You really need a solicitor who specialises in this - you might want to post on the housing board as I know some solicitors advise on there. I do conveyancing work and have a law degree but I am unsure - I would not rely on anybody other than an expert.

Having said that if you have not paid the mortgage or the repair bills etc then there will not be an interest. - or not when I studied!

Hi peb,

I agree that the O.P must take specialist legal advice, that is from a solicitor specialising in insolvency, or a reputable Insolvency Practitioner.

My understanding is that it's irrelevant who pays the mortgage, or who's name the house is in. If a couple have been co-habiting and jointly making contributions to the mortgage, upkeep and domestic bills, then they both have a B.I in the property. The O.P's B.I would be a %age of the increase in the value of the property from the date he first started making contributions.

When you think about it; how can it be any other way? If only one spouse works does that mean they own all the B.I? Of course not, two people living together in a property, both have an interest from the date they started to occupy, and make contributions together.

Richard

Richard_S

Hi Puppy Boy,

I think this is what you need to be careful of:

33.93A Equitable accounting


Equitable accounting is an exercise whereby the court considers what contributions have been made by co-habitees towards a property and uses such contributions, whether direct or indirect, to ascertain what interest each party has in the property.



The principles of equitable accounting are generally established in, but not exclusive to, divorce proceedings. Where partners have separated but one partner has remained in occupation of a (normally) jointly owned property, the non-bankrupt partner (or the trustee in bankruptcy) can require that an equitable accounting exercise is undertaken to determine the shares between the joint owner in occupation and the trustee of the bankruptcy estate as co-owner. It is more unusual (but not impossible) for both parties to be in occupation but to consider that the property is not held in equal shares.



In the first instance the official receiver should establish how the initial purchase of the property was financed i.e. how much each party contributed, and obtain any evidence that it was intended to hold the property either in equal shares or in shares which reflected the deposit paid or contribution to the maintenance and upkeep of the property. (See paragraph 33.28)



As a general rule if the partner remaining in occupation has paid the mortgage payments in full he/she will be credited with one-half of the increase in value of the equity as a result of the capital element of the mortgage repayments made. The same principle applies to structural improvements to the property which the partner demonstrates were entirely funded from their own resources after separation; Re Pavlou (A Bankrupt) [1993] 1 W.L.R. 1046.



During the period in which the bankrupt (or the absent partner) did not occupy the property s/he is entitled to occupation rent from the partner who occupied the property. However, unless there is evidence establishing that payments in respect of mortgage interest paid by the occupant are not equal to a fair occupation rent, the notional occupational rent should simply be offset against the payments of mortgage interest which would have fallen to the bankrupt/non occupying partner but have instead been met by the partner in occupation; Re Gorman (A Bankrupt) [1990] 1 W.L.R. 616.

In Re Byford (deceased) [2003] EWHC 1267 (Ch) it was held that even when there has been no marital breakdown and the bankrupt has remained in the matrimonial home, where the bankrupt’s spouse claims credit for mortgage interest payments made, the trustee is entitled to a set-off for occupation rent against these payments when the bankrupt’s interest in a property is realized.



Notes: Occupation rent

It could well be that your interest is significantly less than 50% but you do need to be certain before you consider bankruptcy.

Richard

Puppy_Boy

hello richard,

thanks for that, i'll have a good read through it!

this is getting more and more scarier. all as i want to do is protect my partners house. even if i have to move out.

i am not going to rush into anything without really giving it serious thought. sounds like i am going to have to see a solictor.

Puppy_Boy

i spoke to a solicitor today just over the phone and was told i have/might have got beneficial interest in my partners house. she mentioned about what richard (op) said last night about equitable accounting. or a charge might be put on the house. it all depends on how the OR views it.

it seems that one person/company tells me one thing and one person/company tell me another.

how can i go for a br and just sit there and wait, worrying all the time to see if the OR decides that i have got beneficial interest and tries to get the money out of my partner for my share. she would'nt be able to buy my share out, or remortgage the house.

ive been told an iva would be no good for me.

so i don't know what i am going to do now. if i try and get a dmp running, i will be in debt for many years.

Richard_S

Puppy_Boy wrote: »

i spoke to a solicitor today just over the phone and was told i have/might have got beneficial interest in my partners house. she mentioned about what richard (op) said last night about equitable accounting. or a charge might be put on the house. it all depends on how the OR views it.

it seems that one person/company tells me one thing and one person/company tell me another.

how can i go for a br and just sit there and wait, worrying all the time to see if the OR decides that i have got beneficial interest and tries to get the money out of my partner for my share. she would'nt be able to buy my share out, or remortgage the house.

ive been told an iva would be no good for me.

so i don't know what i am going to do now. if i try and get a dmp running, i will be in debt for many years.

Hi Puppy Boy,

What you need is a solicitor specialising in insolvency, or an insolvency practitioner. Some I.P's will give a free initial consultation and they will be able to give you a definitive answer, and the extent of your B.I, if any.

Ask them to confirm any conversations in writing and they'll ensure that you get the correct advice.

You can't carry on living in a hopeless debt situation just because you can't get the right advice. It may well cost more than you'd rather pay, but it'll be worth it in the long run.

Richard

Puppy_Boy

hello richard,

thank you for your help, I really appreciate it!

I agree with what you say, that I can't carry on living in a hopeless debt situation, just because I can't get the right advice and yes it will be worth it having to pay for it. then I will hopefully get proper answers from experts.

I'll have a look round for a solicitor specialising in insolvency and i'll have a look at IP's as well. see who I can find.
yes, whether it's a solicitor or ip i will definately get them to put it in writing. i do that with lots of things, to protect myself from becoming unstuck.

i'll have a chat with my other half about it before i go any further as well as even though it's my debts, we discuss everything together as a team.

Richard_S

Hi Puppy Boy,

We've taken advice on various subjects through our bankruptcy and Grant Thornton seem to be the acknowledged experts. We never used them, but one solicitor we did consult had a friend who worked for them and we got the advice that way.

They are a national firm of accountants, so you should be able to find an office reasonably close to you.

Regards

Richard