Ex bankruptcy effects on joint property

windo91

I bought a house with my ex partner in 2007. Although she didn't have an income, her name still went on the deeds and mortgage and I had no issues with paying.

After splitting up in 2009 when we didn't have any equity in the house, my ex started to talks bout filing for bankruptcy. I tried to get the house put into my name but couldn't due to being too much of a risk on my own. At which point my ex stopped tLking bout it.

Now she's talking (but not just talking this time) about going bankrupt again and I'm worried about the effects it will have on me. Will I lose my house - although there's still no equity in it. We also have. Joint loan which I have been paying, what will happen to that?

dancingfairy

The joint loan you will become responsible for.
Not 100% sure with the house but under the new rules they don't normally look at it until 2years 3 months I think unless it has a significant negative equity and unlikely to regain value. I believe that you may be offere the chance to buy the BI interest in it - ie a token amount (plus solicitor costs) to ensure you get the right to future increases in it's value but I'm sure one of the more experts will be able to clarify.
I assume you are currently living in said house?
df

windo91

Thanks for your response. I'm happy with being 100% responsible as that's technically been the case anyway. Yes, I'm currently living in the house.

debtinfo

ex partner or ex wife

windo91

Ex partner. Can I just ask about your comments on "the new rules"? Firstly, new rules in relation to what? Secondly, 2years 3months after what?

Thanks for your help.

debtinfo

With you not being married then the house would not be classed as a family home by the trustee and so by the letter of the law they have an unlimited amount of time to deal with it

There is nothing to stop you putting forward an offer to buy the ex's interest in the equity, if you do and it is accepted then you get her equitable interest in the property (ie you are entitled to 100% of any future profit) however this does not necessarily remove her from the mortgage or the deeds

windo91

Putting forward an offer to who? I've tried to do that in the past but the bank wouldn't give me a mortgage on my own, particularly with there being no equity in the house.

debtinfo

right, if she goes bankrupt, then her interest in the property transfers to the trustee of the bankruptcy, the trustee will at somepoint want to deal with that interest by selling it to you or her or by selling the property, depending on several factors like the amount of equity. You can make an offer to buy that from the Trustee and if you do you will own 100% of the equity (and any future equity) But she will remain on the deeds and mortgage.