Bankruptcy help

fluffy_bunny_5

help..........
my partner is being threatend with bankruptcy over a debt which is just hers.
we have just remorgaged the house and I have only just had her added onto the deeds/morgage. So if my partner is made bankrupt can they sell the house?

regularsaver1

they will look at her assets - they can put a charge on the property

i have seen it done even when the individual does not live there, but was named on mortgage

fluffy_bunny_5

what does that mean please?

regularsaver1

sorry - they could potentially put a charge on your property , but don't worry yourself too much -

is bankruptcy the only way forward?

fluffy_bunny_5

sorry cant help but to worry..... can they force the sale of our home...... many thanks for the advice though

regularsaver1

no

is there equity?

fluffy_bunny_5

yes just under half the house value. Is this a problem?

fluffy_bunny_5

so to get this right,
they can make my partner bankrupt over a £7000 debt but cant make me sell the house to pay back her debt.

fluffy_bunny_5

she doesnt want to avoid her debt its just that at the moment there is no money available to pay it

Bernard_Coleslaw

fluffy_bunny wrote:

what does that mean please?

Basically, putting a charge on your house means you can't sell it without giving them money representing the debt. If the bankruptcy ends (or is paid off by other means) in the meantime, the charge gets removed.

But, in answer to your main concern, this should not mean you lose your home.

Calm down, take a deep breath, and relax.

Debt_Free_Chick

fluffy_bunny wrote:

so to get this right,
they can make my partner bankrupt over a £7000 debt but cant make me sell the house to pay back her debt.

Surely the creditor has not just threatened bankruptcy out of the blue? Have they not been trying to get her to agree to a repayment plan?

It sounds as though this is not going to go away, so she really must deal with this debt. There may still be time to avoid them petitioning for her bankruptcy. Could she or you post on the Debt Free Wannabe board for more advice?