Warning about property from 1st Jan 2011...

Nicola28

Hi All,

I am a newbie, so forgive me if I have posted in the wrong place - so confusing!!

This is all about Bankruptcy and 'MY' home, but the debt is my new Husband's (and his ex-wife's)...My Husband and I married almost 5 years ago; I have had my own home and mortgage for 17 years now. He is in about 30k worth of debt which he got into with his previous wife between around 1999-2002. They sorted out debt arrangement plans with the Citizens Advice Bereau in 2002 and he has been paying his debts off monthly without fail every month since then. He divorced his wife in 2004, taking the arranged 30k worth of debt with him (she was left with just a few small debts which she incurred herself).
In 2006 we got married and moved home in 2007. I am still paying my own mortgage and every bill that I have paid since I was 19 years old to do with owning your own home. He pays his debts and his child maintenance and a money towards the family shopping bill (which always goes on my credit card every week - but which I have paid without fail IN FULL every month - that's just how I was brought up!!!)........So, you see, this is where things could get tricky.....He is thinking of going bancrupt as his creditors keep asking for more and more money per month (I think every 6 months they call him and ask him to increase his monthly payments) - but he's worried that he'll soon just be working his P/T job just to pay them off - this is where the BR is coming in. BUT we are worried that the Insolvency people will use my house to collect the monies. So many people have said that they won't be able to touch my house - as it's nothing to do with my new Husband's, but then the CAB and an Insolvency Advice Line have said that the Insolvency people will look at how long he has lived in my house, and will try to work out how much beneficial interest he has in the house...if I've had any works done in my house etc to improve it...all of which would have been paid with with profit from the sale of my old house to enable us to live in it as a family (I have 2 children and he has 3 with his ex-wife who stay with us every school holiday)....So, is there anyone out there who can help me at all. If he does go through with the Bancruptcy, can they use MY house for monies owed by him and his ex wife!!!!
Hoping someone can help me.....:(
Nicola

chipdouglas

Ok, Having had a read through this thread i am slightly concerned. I am about to go BR on the 28th March, and have a property in massive neg equity. I currently live in a rented house so the mortgaged property is empty.
If it stays empty for over 2 years who covers the council tax?
Also am i correct in understanding that i have to have that property insured?

fiveyearplan

You need to contact the council where your mortgaged property is and ask for a reduction in council tax. I think it is waived for 6 months then you will be liable for 50% after that until the property has been repossessed. You have to contact the council for the rebate though or you will still be liable for the whole thing.

fiveyearplan

Nicola28 wrote: »

Hi All,

I am a newbie, so forgive me if I have posted in the wrong place - so confusing!!

This is all about Bankruptcy and 'MY' home, but the debt is my new Husband's (and his ex-wife's)...My Husband and I married almost 5 years ago; I have had my own home and mortgage for 17 years now. He is in about 30k worth of debt which he got into with his previous wife between around 1999-2002. They sorted out debt arrangement plans with the Citizens Advice Bereau in 2002 and he has been paying his debts off monthly without fail every month since then. He divorced his wife in 2004, taking the arranged 30k worth of debt with him (she was left with just a few small debts which she incurred herself).
In 2006 we got married and moved home in 2007. I am still paying my own mortgage and every bill that I have paid since I was 19 years old to do with owning your own home. He pays his debts and his child maintenance and a money towards the family shopping bill (which always goes on my credit card every week - but which I have paid without fail IN FULL every month - that's just how I was brought up!!!)........So, you see, this is where things could get tricky.....He is thinking of going bancrupt as his creditors keep asking for more and more money per month (I think every 6 months they call him and ask him to increase his monthly payments) - but he's worried that he'll soon just be working his P/T job just to pay them off - this is where the BR is coming in. BUT we are worried that the Insolvency people will use my house to collect the monies. So many people have said that they won't be able to touch my house - as it's nothing to do with my new Husband's, but then the CAB and an Insolvency Advice Line have said that the Insolvency people will look at how long he has lived in my house, and will try to work out how much beneficial interest he has in the house...if I've had any works done in my house etc to improve it...all of which would have been paid with with profit from the sale of my old house to enable us to live in it as a family (I have 2 children and he has 3 with his ex-wife who stay with us every school holiday)....So, is there anyone out there who can help me at all. If he does go through with the Bancruptcy, can they use MY house for monies owed by him and his ex wife!!!!
Hoping someone can help me.....:(
Nicola

If you have been married and living together for 5 years it will probably be difficult to prove he doesn't have any beneficial interest in your home.

chipdouglas

fiveyearplan wrote: »

You need to contact the council where your mortgaged property is and ask for a reduction in council tax. I think it is waived for 6 months then you will be liable for 50% after that until the property has been repossessed. You have to contact the council for the rebate though or you will still be liable for the whole thing.

Ah, That is not good, 1/2 price will be £108pm (band f) on top of our current council tax of £119pm (band b)
Would i be able to voluntary hand back my house before i go BR on the 28th or would that be a big no no?

fiveyearplan

It's only half price if you ask for the discount! You could voluntary repo just be sure you don't sign any paperwork to say you will be liable for any shortfall.

chipdouglas

Thank you fiveyearplan! I think we will try and get it vol repossessed prior to BR

*unless we can stay in it rent free for 2.3 years, then i would only have one council tax bill to pay :idea:

*joke

fiveyearplan

Some people have remained in their mortgaged homes for months and months before it was finally repossessed without paying anything. I think you'd have to have nerves of steel though but there is nothing wrong with doing that. I think I'd rather not have the embarrassment of being thrown out - on the other hand if you were hoping to be housed by local council you wouldn't be able to voluntary repo as that would be making yourself intentionally homeless.

stuart30

Annoys me that they can change the rules after you go bankrupt...after all at the time of BR you base your decision on the current laws and your situation.

Oh well such is life....i wonder how much a good quality cardboard box will cost..lol

chipdouglas

We have already moved out in anticipation into private rented accommodation.
I though that we would get kicked out anyhow after going BR any how, but thought wrong.
Again, many thanks for your help fiveyearplan, hopefully i can get this sorted before the 28th! :doh: