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My BROTHER IS GOING BANKRUPT HOW WILL THIS AFFECT JOINT BTL MORTGAGES.

johnjazz
Posts: 1 Newbie
My brother is thinking very seriously about going bankrupt due to some bad property investment made during the good times. My brother and i have 4 joint BTL mortgages, which are probably all in negative equity. How does his bankruptcy affect me and these BTL mortgages? Do i have to take on the full mortgages myself or can i buy out my brothers share at current market value, which i would do if the bank will let me. Any advice is very welcome.
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If he goes BR, you become liable for the mortgages in full.
Say you have 4 x £100,000 mortgages, "you consider yourself to owe £200,000"
You will now solely owe £400,000 in mortgages.
This applies to any joint accounts he hold, the debts goto the other account holder(s) to pay. As it releases only his liability to pay debts. All joint accounts have the clause that all named account holder(s) are liable for the debt in full.
This is the general cases, although there are alot of rules about it. Most likely the houses will get a CO or be sold. And the shortfall is what will be owed.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Debt info has dealt with the liability issues so i will add this. The trustee in the bankruptcy will be entitled to receive half of the rent from the tenant and is under no onligation to use this to pay the mortgage. The OR is not obligated to let you buy the beneficial interest back as it is not a family home so you will have to make an offer that the OR would be unwise to turn downHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
It's also worth mentioning that as you have joint finances, and therefore a financial association on your credit file, his going BR will have a negative affect on your credit rating, which may cause problems if you need to remortgage the properties.Total 'Failed Business' Debt £29,043
Que sera, sera.0 -
Debt info has dealt with the liability issues so i will add this. The trustee in the bankruptcy will be entitled to receive half of the rent from the tenant and is under no obligation to use this to pay the mortgage. The OR is not obligated to let you buy the beneficial interest back as it is not a family home so you will have to make an offer that the OR would be unwise to turn down
The right offer is probably half of the unmortgaged equity in the properties?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
yes but the OR doesnot have to do anything with them and so would be quite happy to sit there collecting the rents if their is little or no equityHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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