HELP! My Ex is going Bankrupt on Joint Debts!

veg_racer

Hi all, was wondering if anyone can help me?
My Ex and i split about 6 months ago, she moved out and is now renting.
I agreed with her that i would cover all of our joint Debt in return for allowing me to remove her from the mortgage and Deeds when i can afford the fee's etc.

Now she is saying that she can't afford the personal debt she is in and is filing for Bankruptcy. We have a joint mortgage together and a few other joint Debts totalling approx £90,000 (82,000 Mortgage).

I can just aout afford to pay all of them although it is hard at times! My only concern is what happens when she goes Bankrupt? Will it affect me in any way?

If so how am i best to defend myself?


Any help Greatly Appreciated



Anthony

dollparts

From what I have been advised here any debts you are jointly liable for will fall upon you to take responsibilty for. Any debts she has in sole name will not affect you at all.

In the case of the mortgage there are more details that someone else will come along and answer soon I am sure.

Hope this helps in the meantime.

worried_jim

any joint debts will become your sole responsibility, in effect her debts will not be wiped off in the br (except her sole debts) they will just transfer solely to you. You are about to get the smelly end of the deal- no nice way of putting it.

serenity34_2

Is there any equity in your property? If she does go bankrupt then the Official Receiver ( OR ) will look at what they call her beneficial interest in the property ( it won't necessarily matter if her name is still on the mortgage / deeds or not ).

veg_racer

Lol only Negative Equity! I Know i'm getting the raw end of the deal here but i really didn't want to lose my house. So if all of her Debt has to be transfered to me will i have to be credit checked to make sure i can afford it? or will the fact that i have been paying them from my sole account for 6 months act in my favour?
I would quite like this opportunity to permanently end our fiancial linking and have her removed from the mortgage and the deeds. Will it cost me?

peachyprice

As long as the mortgage is being paid you will not lose the house.You will only be able to remove her from the mortgage if you can afford to re-mortgage yourself.

Her going BR and you buying her BI will not affect the mortgage or deeds.

RAS

veg_racer wrote: »

Lol only Negative Equity! I Know i'm getting the raw end of the deal here but i really didn't want to lose my house.

that need not happen.

if you are in negaTIVE EQUITY , you will be offered the opportunity to buy the beneficial interest in the property for £1 plus the OR's fees which are something like £1. That means any increase in equity after her BR date belongs to you.

on the other hand, you will have to pick up the £8k joiunt debt.

Suggest you post on the BR forum for help re your ex's situation and BI and that you think about posting on DFW for help with finances and budgets.

serenity34_2

veg_racer wrote: »

Lol only Negative Equity! I Know i'm getting the raw end of the deal here but i really didn't want to lose my house. So if all of her Debt has to be transfered to me will i have to be credit checked to make sure i can afford it? or will the fact that i have been paying them from my sole account for 6 months act in my favour?
I would quite like this opportunity to permanently end our fiancial linking and have her removed from the mortgage and the deeds. Will it cost me?

Peachyprice is right, as long as the mortgage is paid then your home should be safe ( in theory the OR has up to 3 years to deal with a property in bankruptcy though ).

The debt won't really be 'transferred' to you as if they are in joint names already her liability just ends and you become solely liable so they will not credit check you ( as you aren't applying for credit ).

In terms of ending your financial link with her then you will possibly need legal advice unless she agrees to be removed from the mortgage and deeds. If the mortgage is still in joint names then for credit referencing purposes you will have what's called a 'financial association' so you may want to consider putting notices of correction on your credit file in the meantime ( contact Experian, Equifax and CallCredit the 3 cred ref agencies in the UK )

worried_jim

Good news about the house !