Bankruptcy and a Mortgage?

catchphrase_2

OK, I have contacted the CAB and have an appointment for the end of next month So, seeing as how my question is quick and simple I thought I would ask you guys.

If my ex-partner declares herself bankrupt, what would happen to our home?

My partner and I have split after discovering that she was unable to remain faithful, and we've been left with negative equity on the mortgage (bought 3 days before the recession kicked in). Now I am paying the mortgage single handedly at the minute, but I fear that if she declares herself bankrupt her creditors would come after me or my house to re-coup their losses.

Any and all advice welcome.

curly04

Hiya

They will only chase you for any joint debt. Take it the mortgage is in joint names??

Is there any other joint debt?

dojoman

They would only come after the house if there was any equity in it. Have you any unsecured debt that is joint?

catchphrase_2

No, the only thing in joint names is the mortgage, she does have her own car in her name and her own loan in her name, but they are in her name alone.

I am paying 100% of the mortgage on my own as it currently stands, so could it be an idea for her to sign her half over to be before declaring herself bankrupt - just to avoid any possible cockups?

Thanks guys

FraudBuster

so could it be an idea for her to sign her half over to be before declaring herself bankrupt

This won't work.

catchphrase_2

Thanks for the response - why wouldn't this work?

What would happen to my mortgage is she (who I no longer have any dealings with but unfortunately own a home with) declared herself bankrupt but I was still willing to pay 100% of it?

tigerfeet2006

The bank won't let her sign it over, nor will the OR as it is an asset even in negative equity.

To own the property outright you need to be able to re-mortgage in your name only.

If she goes BR you may be able to buy her rights to any future equity (benificial interest or BI) from the OR but she will still remain part owner.

Talk to National Debtline about your situation, they will e able to tell you where you stand legally etc. Number in my signature.

FraudBuster

catchphrase wrote: »

Thanks for the response - why wouldn't this work?

What would happen to my mortgage is she (who I no longer have any dealings with but unfortunately own a home with) declared herself bankrupt but I was still willing to pay 100% of it?

Q.3.5
[FONT=Arial, sans-serif]If you have sold or given away any of your assets in the last 5 years and received less money than they were worth or no money at all you must provide full details of the transaction.[/FONT]

[FONT=Arial, sans-serif]The trustee may apply to the court for an order restoring property to him or her if you disposed of it in a way which was unfair to the creditors (for example, if before bankruptcy you had transferred property to a relative for less than its worth).[/FONT]