a little advice needed please

slightlyconfused1

Hi

My friend's husband is about to go bankrupt after his business failed. My friend is now in a state of panic as her name is on her Mum's house (no mortgage) and she has a number of joint accounts with her Mum. All the money in the house and the account is her Mum's.

Will the bankrupcy mean my friend will lose all her assets too? She has no debt other than a joint mortgage on her home. Unfortunately her husband took a secured loan out against the house and it is now in negative equity. My friend is scared that both she and her Mum will lose everything.

They live in Scotland if that makes a difference.

Any advice I could pass on would be gratefuly received.

mel12

Hi, is the person who is going bankrupt's name on any of the accounts/ house?

dojoman

As long as it is only her husband going BR and she is not liable for any of his debts, then she should be fine.

slightlyconfused1

Hi

No it is just my friend and her mum's name on the house and accounts (as far as I am aware).

It was only made joint names because her Mum finds it hard to deal with "official" things and it avoids the hassle of trying to get permission for my friend to speak to people on her Mum's behalf.

Thanks

NeverAgain_2

Unless I've mis-read the OP, the friend's name is on her mother's house, which is fully paid.

The friend's name is also jointly on her and her husband's house, which is mortgaged, and in negative equity.

The husband is going bankrupt, so the mortgage and other secured loan company will go after the friend.

She, technically if you like, also has an unmortgaged property asset - her mother's house.

I think the friend is in a precarious position.

dojoman

But they do not say they are not going to keep the house they are in, if so the mortgage/secured loan will continue to paid, however if they are planning to give the house up, then that is a different matter.