Bankruptcy and mortgage in husbands name

bernie0001

I currently live with my husband. The mortgage is 100% in his name, but we have been living together for 5 years and married for 1 year. Its unclear how this will be seen IE do I have a beneficial interest in the property. My husband has paid the mortgage for the last 10 years and continues to pay all bills. I have not contributed to the maintenance or upkeep of the house.

Has anyone else been in a similar situation or know how this will be handled.

Thanks. Bernie

PippaGirl_2

You will definitely have a beneficial interest in the property so the OR will be interested in this. Have you had any income in the last 6 years?

bernie0001

Thanks, Yes I have my own income for 10+ years and pay for my own bills ie mobile phone etc,. The reason for considering bankruptcy is because I have bank loans (held by non uk banks) on property outside of the UK. The rental income now falls way short of the loan repayments, and the market value of the property will not meet the loan value. I’m currently living in the UK.

PippaGirl_2

The OR will decide what if anything they can claim from the equity of the house, and you will have the option of 'buying' that interest by paying that amount to the OR so the house remains 'safe'.

National_Debtline

The Official Reciever would consider the intentions of both parties. The fact that your partner has paid the mortgage and all the bills is very important here. If they have paid these in their entirety it cannot be said that there is definately a beneficial interest as there may not be at all. it would be vital to seek further advice to ensure what the potential implications might be. It's important to remember that the OR would have to be able to prove that such an interest exists, not the other way around.

Best wishes,

National Debtline.

bruciebounus

National_Debtline_representative wrote: »

The Official Reciever would consider the intentions of both parties. The fact that your partner has paid the mortgage and all the bills is very important here. If they have paid these in their entirety it cannot be said that there is definately a beneficial interest as there may not be at all. it would be vital to seek further advice to ensure what the potential implications might be. It's important to remember that the OR would have to be able to prove that such an interest exists, not the other way around.

Best wishes,

National Debtline.

So would the OR be able to claim beneficial interest only on Bernies contribution to the house. I.e half of mortgage payments for the year that she has been in the house? Or could they try to take all equity in the house, i.e. force a house sell?

debt_doctor

Hi,

From what you say, I dont see much in the way (if any) of a beneficial interest as the house is in his name and you have not contributed to the mortgage or to general household bills.
As said earlier, in cases like this where the bankrupt is the non owner of the property, it is up to the trustee / OR to prove a ben. int. at their cost, regards legal expenses.

DD

PippaGirl_2

I've been told though that they take into account where your money went. If one person say the dh pays mortgage/utilities each month and the other say the dw pays food/carcosts/holidays/nightsout then the OR will consider you have been contributing to the house by taking on other joint marital costs/bills.

Mouse1812

They have only been married for a year (togther for five). Over the last five years house prices have fallen and for the last couple of years been flat. In the absence of any increase in property values, and assuming the mortgage payments are mostly interest, I would be very surprised if the OR could show that any beneficial interest had accrued.