Bankruptcy - Separated

ANY_CHANCE

Hello, i hope you dont mind me posting this question but my husband and I separated last year unfortunately due to pressure of debt etc. The house I live in with the 3 children is in joint names He mentioned that he was advised to go bankrupt. If this happens would we lose our home as a result?

My initial thoughts are that they would not make us sell the home but is this assumption correct?

ANY_CHANCE

Just thought i would say that i wouldnt get a mortgage to buy the other half of the house and also that the house prob doesnt have any equity in it now.

In 2006 when it first necame clear we were deep in debt it was mentioned that we should go bankrupt but for one reason and another we were scared of doing this ......perhaps we should have done it instead of the never ending DMP we did instead.

peachyprice

If there's no equity in the house it's extremely unlikely that you would lose the house.

You would be given the opportunity of buy your ex's beneficial interest in the house, which if there's no equity would only cost you £212, this means that you would then 'own' any equity in the future, but wouldn't change the ownership of the house or the mortgage, there would be no need to remortgage, that can all carry on as normal.

If there was a little equity you would be given the opportunity to buy your ex's share, usually at a reduced rate, for example of there was £10k equity, only £5k would be your ex's, the other half would be yours, you would most likely be able to buy it from the offocial reciever for £3-4k, it doesn't even have to be you who buys it, it can be anyone you know.

HTH

ANY_CHANCE

Thanks for that it does help alot.

So if he does go bankrupt who would i hear from for this offer? and is it only possible if he goes bankrupt?

peachyprice

You'll hear from his Official Receiver.
Yes, this only happens if he goes bankrupt.