DRO, beneficial interest and other half

karenreeves

Sorry if I've not posted this correctly - am getting used to the site!

My other half is being advised to apply for a DRO, but have also found out through Payplan that he may have a beneficial interest in my property, which will impact the DRO application? I think?.
The house in in my name - he moved in after I bought the house but obviously contributes his half towards bills and pays something for his rent, which is not exactly half of the repayment for the mortgage each month.
I have tried contacting CAB for advice but just keep getting cut off and really need some advice about what he can do. how do I find out if he has a beneficial interest legally in my house? and if he does what does that mean for him/me and the DRO application and what are the implications of this?
Please help!

Feelingfoolish_3

Hi

BI is not a factor for a DRO, he would have to be named on the mortgage which would show up on his credit file.

To put your mind at rest you can ring the IS helpline.

SouthCoast

Advice from CAB on DRO's:

http://www.adviceguide.org.uk/index/life/debt/debt_relief_orders.htm

karenreeves

Feelingfoolish wrote: »

Hi

BI is not a factor for a DRO, he would have to be named on the mortgage which would show up on his credit file.

To put your mind at rest you can ring the IS helpline.

Thanks.
Payplan advised that BI is considered as it could be seen as an assest?

what's the IS helpine? Who are they?

Feelingfoolish_3

On this occasion PP are incorrect
BI is only used in bankruptcy, it is not an asset to your OH

IS - Insolvency Helpline 0845 602 9848

karenreeves

Thanks, I've just rung The IS and spoke to their Debt Relief Order Unit and the guy there said it was a grey area, but made the inclination that my OH would not have a beneficial Interest, however did advise that I seek legal advice as it is such a grey area.

One other thing you may eb able to help with....

OH had 3 creditors, now only 2 creditors as I paid £333 in F&F settlement in March this year as got threatening letter through door, not knowing that this may impact his application for a DRO - we didn't know about DRO's then!

How much will this affect his application for a DRO. Full amount of debts are £14,440 for the other 2 creditors.

Any help is much appreciated! Thanks.

Feelingfoolish_3

Hi

I was wrong - so sorry, doubted myself too so I just checked with IS and I apologise but its not a definite with regard to BI. I think it would just come down to how long and how much he has contributed.
With regard to paying the creditor off then that could be seen as preferential and this may go against his application but you could try and argue that it was due to getting the threatening letter, not sure it would hold much weight.

karenreeves

it's so complicated!
I don't know whether he should just risk it and apply and see what happens.

No-one seems to know a clear line - there is no definitive answer.

I don't even know how much or how long he would need to have been paying for to have any BI. He's been there for about 2 years but only paying for about 18months as this is when he started to earn money again. The amount has gone up in the last year as my lodger moved out and he paid to rent the second bedroom as his daughter lives with us too, so she has the second room now that the lodger is gone.

debtinfo

I think that as house prices have been falling in the last two years it is unlikely that he will have gained an interest, despite his contribution the house is prob worth less than when he started paying

debt_doctor

Hi,
There is nothing at all in the intermediary guidance notes about beneficial interest. In my personal opinion I think he will be ok, but thats just my opinion. We will not know the answer to a few 'grey areas' until further guidance or case law is issued.

DD

karenreeves

Hi,

I've managed to get a quick chat with a solictor today and he said that it was a grey area too.

He asked me to do some calculations to work out what the beneficial interest would be for my partner, but I have no idea where to start! Does anyone know how to work out what his beneficial interest in the property would be.

I think I need to get a valuation done to see if the house price has increased and see if the house is in negative equity or not - but wouldn't even know where to start with this either! HELP!