Can they touch my girlfriend's house?

monkeychicken

It seems i may soon be bankrupt-all credit cards & a loan, all of which i've had for a number of years. here's the scenario; My girlfriend previously owned a property that i had nothing to do with(before i knew her) which she sold 13 months ago & put £42000 of it's equity as a deposit on a new house, solely in her name as i had no money. I moved into her new home about 10 months ago,until this point i'd always lived with my parents. We agreed i'd pay £300 a month rent as all the rest of my wages went onto debts, she paid all the rest of the bills. My debts have now got seriously out of hand as i have been living off the cards as all my wages pays the minimum repayments on them. Now where it hits the fan-My girlfriend lost her job 1 month ago so we are down to my wage, i have stopped paying my debts as we need the money to live. I can just about make the mortgage payments & other bills if i don't pay my debts. I went to CAB who put me onto CLS, he reckoned that if i went bankrupt, as i have no assets, they could take part of the house as i had a 'beneficial interest' in it, even though i've lived there for just 10 months & the mortgage is in girlfriends name, as are the household bills & i have contributed no money into the house or its furnishings. My g/f is understably worried-why should she loose her hard earned money or house on my stupidity? She may make me move out but i've nowhere to go, how much of the house would they be likely to want?

iquit

If you go bankrupt, they can't touch your girlfriends house. You might have a problem justifying to the OR paying your girlfriends mortgage whilst ignoring your own debt though (in my opinion).

Sergio_Baptista

they certainly have a right to touch your girlfriends house if you go bankrupt..u should try and come out of this situation soon.

Miss_Poohs

I find that hard to believe.

He didn't contribute to the previous mortgage, therefore has no call on the £42000 profit the girlfriend had to put down as a deposit on her new place.

Monkeychicken paid £300 a month contribution - now with the best will in the world, that isn't going to cover, mortgage, c/tax, insurance, utilities e.t.c.

£300 is barely £70 a week!!!

peachyprice

If you're paying your GF's mortgage the OR could feel you have a beneficial interest in the house.

Beneficial interest can be hard for the OR to prove, however, one of the main points would be you paying the mortgage.

Time is on your side, BI is accrued over time and is based on how much you have paid towards the mortgage and/or major improvements over what period of time.

If you are going to go BR without it having any effect on your GF's house you need to do it pronto.

Is your GF entitled to any help or claim on any mortgage protection insurance?

kew63

He's only been paying for a month so any BI is going to be tiny. My husband moved into my house last Oct, didnt give me a penny towards any bills until just before the BR as he'd closed his failing buisness & got a job.

The OR has not got a BI in my house, and after asking when he moved in etc was happy to accept that.

We were told by CAB & Insolvancy Practioniner that if hubbie had been paying in for several years then they could claim BI, but it would be proportional. For a couple of months there is NO BI.

peachyprice

That's why I said he needs to act pronto :rolleyes:
The longer he leaves it, the more BI will accrue, especially as he will now be paying the entire mortgage.

debtinfo

As the others have said, although in theory you could accrue a beneficial interest, in this case all the deposit came from GF, The equity is prob now worth less than when she bought it so no new equity has been created by your contribution and your contribution has been so low that it could be argued that you have contributed to household bills only not the mortgage. I do not think you have anything to worry about, but naturally they will ask you questions so have the above points ready.

PS who is sergio