please help newbie

dankerrysmum

new to this ,please help!!
i live in scotland with my partner and 2 kids
i have unsecured debt in my name only and have been waiting for someone to make me bancrupt for the last 4 years
the morgage and deeds are solely in my partners name
one of my creditors told me today that it could be deemed that the house could also be my asset as we live together as common law partners and we claim tax credits even though my name is not on the mortgage or deeds
can anyone advise as i am worried sick
i am now considering lila

shadowdragon

I think as you have lived in the house you have a beneficial interest in it, even if you dont contribute to the mortgage. Solicitor told me a few years ago I was entiled to a share of one of my ex partners house, as I had contributed by way of maintenence of the garden, contributing to household bills. Unless things have changed recently.

coolcait

Hiya

If the house is in your partners's name, then I don't see how that can be considered your asset .

As I understand it, if you have no assets, and are on a low income, and have more than £1500 of debt, then you can apply for bankruptcy on the grounds of low income, low asset (LILA).

And I think that the fact that you receive tax credits would make you eligible, even if you technically earn over the minimum wage. Though that might mean that you have to pay some money each month for the next three years (you can get discharged after a year, but if you are making payments, that goes on for three years from the day they're set up).

But, honestly, the best thing to do would be to go and talk to your local CAB, or your local authority money advice centre, and let them advise you what's the best thing for you.

Good luck!

chelseabun_3

Hi DKM,
I don't know if it's the same in Scotland, but in Eng & Wales if you've lived in a house you have a beneficial interest (BI) in it, which would transfer to the OR when you go BR. Your other half could negotiate to buy the BI back from the OR in order to keep the house. If the house is in negative equity that would cost £1 plus fees approx £250. If there is equity in the house then your OH (or someone else) could negotiate with the OR on buying it. Hope that helps! CBx