Going bust house is in wifes name been told it's ok but she is worried Help!!!!!!

octo0072000

looks like i will be going bust shortly house is in wifes name been told it's ok but she is worried
had loads of info on this OR's clerk say's if my name is not on land registry it's not touchable but IVA practoiner has said something about acrewed interest in property
i am having to go on long term sick was self employed house is 90% positve equity wife lived in it for 35 years as councill house then bought it at discount price in her name only 9 years ago we have been together 8 years she has paid all payments etc i just pay gas electric phone did have taxi busines till the credit crunch as they put it lost 4 of my contracts then accident at christmas so now my ME/CFS has got worse due to stress etcLONG TERM SUFFER still trying to sort things out at present but can't see any other way of going
all help gratfully recieved thanks :eek::eek::eek::eek::eek::eek:

peachyprice

The IP was referring to what is known as having a beneficial interest in the house. If for example you had been paying the mortgage or had paid for large scale home improvements that which have resulted in an increase in value of the house you would be deemed to have a beneficial interest in the property. If all you have paid is your share of the bills it's unlikely you will be considered as having a beneficial interest, although the OR may look quite closely at this as there is such a large amount of equity at stake, so be prepared to prove how little you have contributed.

Richard_S

Hi Octo,

Without knowing the details of the house; what your wife paid for it initially, it's value when you moved in, and its value now, its almost impossible to predict what the impact of your bankruptcy will be.

As a rule of thumb, your B.I will be 50% of the increase in value of the house from the date you moved in to the date of your Bankruptcy Order.

Over 9 years that could amount to a relatively large amount, but given the current nose dive in house prices, and the fact that there's unlikely to be any reversal in the near future, you could well be o.k.

Regards

Richard

fiveyearplan

I would think there would still be a significant increase in value over 9 years. Also, would they take into consideration the discount she got or would they use the actual 'value' of the house when she bought it? That could make a big difference too.

octo0072000

house insuance value is 129000 but one on same street corner plot just sold for 115000 with a garage mine has no garage and no car access to rear garden just parking space on front so i value it at 99000 cost 35000 at time of purchase with discount 12500 owe about 12000 so worst case about 40 thousand out deposit borrowed off her daughter so she is not happy either iif the OR looks at it so now 7 out of 9 people say untouchable banruptcy assoc say untouchable OR office says untouchable name not on land registry never has been so it's the not knowing bit if house goes so will the marrage but with my health not a prayer of paying it off:eek::eek::eek::eek::eek::eek:

peachyprice

This is from the Insolvency Service website, from here

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part2/part_2.htm

33.48 Property in the sole name of spouse, civil partner or cohabitant
Where the property is in the sole name of a spouse, civil partner or cohabitant of the bankrupt, the official receiver should consider the possibility that the property has been transferred into the spouse’s, civil partner’s or cohabitant’s sole name or was purchased with funds provided by the bankrupt with a view to defeating his/her creditors. Such transactions may be set aside (see paragraphs 33.119 to 33.125). Where the official receiver is satisfied that the bankrupt did not provide purchase monies, he/she should make enquiries to ascertain whether the bankrupt has acquired a beneficial interest in the property, for example, by making mortgage repayments, contributing to household expenses etc. The guidance in paragraph 33.52 should be considered in this respect.

This is what they will take into account, and you may have to convince them you have contributed very little.

octo0072000

due to my health over the past few years the stress of this will put me back in bed for months but the house may be ok as she paid deposit and all of the payments all i paid was phone gas electric as she earned more than me so we will have to see how we go :eek::eek::eek::eek::eek::eek:

fiveyearplan

Did the household payments come out of your bank account? Are any of them in your name? If not can you say you just pay for food and the odd expense.

octo0072000

gas electric was online out but not by direct debit paid as and when phone was direct debit but that was for taxi business she always did the food any help was cash

VinBee

We are in a similar situation, long story but in court on Monday, Local Authority applied to make me BR. (See my previous Post under VinBee)
We are also concerned, house is in my wife’s name, and she has always paid the mortgage on both properties.
It is our second marriage
She sold her family home to buy the one we are in now
Paid for it out of the proceeds of the sale of her first house
Her name is on the Land Register since early 2008
For a period of approx 12-18 months we both were on the Land Register for a Bridging Loan.
Her family home sold and mortgage paid off by her using the proceeds (point 2), both properties have been registered in her name.
House to be left to her children in her will.
Can it be seized? :eek::eek:

debtinfo

You are going to have to spell out a bit more what transactions have happened, who was involved, when they were, what contributions you have made to mortgages, loans, household bills, deposits, property renovations etc

as you can see it is not clear cut