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beneficial interest

Hi There,I am having to petition for bankruptcy and can only cope with it because of reading entries on this website.Many thanks to all.I have one thing that is bothering me.I am a single mum and have brought up my 2 teenage boys on my own.We moved in with my mum a year after my dad died about 14 years ago.It suited her because she had some company and could stay on in the house which is too big for her alone.Itsuited us because she was able to look after the boys when I was working.It has been a mutually beneficial arrangement.It has continued for all this time because I have never earned enough to get somewhere for me and the boys.Also I would feel terrible moving out now mum is 85.

I have never paid rent to mum.The mortgage was paid off years before we moved in and I have not paid for any improvements or DIY.I have paid council tax for the property and the phone bill plus groceries.Mum has paid water gas and electric.I now have to go BR because of debts of£27000 and am really panicking incase the OR makes Mum sell her house to pay beneficicial interest.I do not want her to have this stress at her age.Too scared to book a hearing since hearing about this possibility.Could anyone put my mind at rest?I am named in Mum's will along with my 2 sisters but Mum,thank goodness is very well!!Thanks
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Comments

  • lilibet1
    lilibet1 Posts: 820 Forumite
    Sorry i dont have any answers, but someone will be along soon im sure.

    x
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    You shouldnt have any beneficial interest in the property as you have made no material contribution. If anything you could argue that you owe your mother as she has been giving you free rent.

    Although your mum is well, and hopefully stays that way, it may be prudent for her to change her will to exclude you now and change it back after the bankruptcy
    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.
  • IF
    IF Posts: 34,349 Forumite
    10,000 Posts Combo Breaker
    Hello FF and welcome. As long as your name is not on the deeds too, the OR can't touch your mum's house. Is a debt charity helping you?
    "If wishes were horses, then beggars would ride"
  • Thanks for answering.Everyone seems to have said something different who Ihave asked and it seems to depend on the OR
  • Thanks ifwisheswerehorses.Yes I have spoken to Nat Debtline and Business Debtline.They would not give me a definate answer and I don't want to go bankrupt until I know Mum's house is safe.
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Thanks for answering.Everyone seems to have said something different who Ihave asked and it seems to depend on the OR


    thats because there is no clear cut answer and it depends on the situation, for instance if you had been paying the mortgage for her for many years or had spent £20,000 extending the property for her then you would have accrued an interest, being that you have not and have only paid towards living costs it has always and will continue to be solely owned by your mother
    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.
  • dojoman
    dojoman Posts: 12,027 Forumite
    Listen to DI, as ever his advice is invaluable.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • Thanks ever so.I feel a lot better now!!
  • sizzler
    sizzler Posts: 5,094 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    glad you feel ok DI is a legend with help and such good support from good people here.

    Best of luck sizz:)
  • debtinfo,would it be worth saying that mum could have used £50 or so rent per week as she is living on a pension so in theory I could be said to owe her £30,000 give or take a few thousand?That would detract somewhat from me having a beneficial interest?!
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