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Ex-going bankrupt, what happens to my half of house?

Hi any advice would be great!

My Ex girlfriend is still living in the house we bought together, the deal was when we bought together that I put down a very large deposit and she would pay the mortgage. We have a couple of young children and since the split I moved out and have them as much as she will allow at my new home (rented). Since I moved out we agreed that she'd stay in the house and when we wanted to sell it what ever is left after the mortgage is split 50:50, but she is responsible for paying the mortgage while she lives there.

So my question is, if she goes bankrupt and the house gets reposed what happens to my share? The mortgage is the only debt with my name on it.


Please help put my mind at rest!

Comments

  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Do you know if the mortgage payments are up to date? If they are, then you might be able to keep the house.

    Do you know if there is any equity in the property?
  • motu
    motu Posts: 5 Forumite
    Thanks for quick reply!! Yes payments up to date at the moment and there is around £110, 000 equity.
  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    There's £110,000 equity, so £55,000 each. Is your ex sure that BR is the right thing to do? With that amount of equity, then a Debt Management Plan or IVA might be more suitable.

    Given the amount of equity that she will have, then an IP will be appointed to deal with the house as as asset. As it's a family home, they have three years to deal with the property. More details in the leaflet below:

    http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf
  • motu
    motu Posts: 5 Forumite
    Ah thanks, looks like if she went down that road her debts would be paid from her half of the house then. We discussed re-mortgaging to pay her debts but I cant see how that would be a better option than one of those consolidation loans. Its about 20k apparently.
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    how much are her total debts
    Hi, 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.
  • motu
    motu Posts: 5 Forumite
    At the moment it's 20k not including the mortgage on our house.
  • JCS1
    JCS1 Posts: 5,331 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    She might have a problem going bankrupt - as her assets are more than her liabilties then she's not insolvent.

    Please urge her to speak to one of the free debt charities to discuss her options
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    I think the two of you need to get together and split up the house. She needs to live somewhere she can afford and her half is easily enough to cover her debts
    Hi, 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.
  • motu
    motu Posts: 5 Forumite
    Right will do! Thanks for the advice, very greatfull!
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