OR interview/BI interest question

bruciebounus

My boyfriend was petitioned for bankruptcy by HMRC, and declared BR a couple of weeks ago. He has a face to face interview with the OR in a couple of weeks time. He is self employed and hasn't got the appropriate accounting records. The letter from the OR has asked that he brings these to the interview, does he just turn up empty handed, will he get into trouble, shall he try to inform the OR before the interview?

I got a mortgage last year and we have been living in the house for 9 months prior to the bankruptcy. I pay all of the mortgage and he pays extra on certain bills, but am worried that the OR will request that the mortgage and bills to be spilt 50/50 between us.

If this is the case could the OR try to find that he has a beneficial interest in the house? He had to sign a form for the mortgage company before moving in stating that he has no financial interest in the house (I assume as a safe guard in case they needed to repossess in the future). In a worse case scenario, if they do try to prove BI, would this be only 50% of the mortgage cost from the past 9 months, or could they try to make me sell the house to release any equity?

Many thanks in advance for any help.

Mouse1812

Did you pay a deposit for the house? and if so what was the source of those funds?

The OR will look to see if your BF made any capital contribution to the property giving him a Beneficial Interest. If for example he provided part of the deposit they may seek to recover it.

If however your BF provided nothing, and you alone have been paying the mortgage I would argue (in the strongest terms possible) that he has no entitlement to any equity. House prices have not gone up over the last 9 months and I suspect your mortgage remains fairly close to where it started.

Don’t worry about 50% of the mortgage costs, those payments will be mostly interest which will not have reduced the mortgage debt by much.


Re accounting records, just turn up with whatever he has, even if that is only bank statements and a few receipts, take it all along. The OR will advise what he can do to help them.

bruciebounus

Hi Mouse, thanks for your help. My parents gifted me the deposit, I can prove this with my bank statements. Would they have to ask my parents? I haven't told them about the BR.

Is that worse case scenario or do you think they may try it?

Mouse1812

Looks to me that you have sufficient evidence without having to bother your parents.

It’s your house, you bought it with your money and a mortgage in your name. You and you alone are paying the mortgage. There will be nothing in BF’s bank statements to contradict this.

Stand your ground: He has no interest whatsoever in the property and should not give the OR any impression otherwise.

He might provide some financial contribution to the bills, but he would have to do that where ever you lived. I would resist any argument that in doing so he enables you to meet the mortgage, he is just paying something to cover the additional cost of him being there. The more he looks like a “kept puppy” the better.

Indeed you might be of the opinion that BF is only allowed to stay on conditions .... (long list of duties and chores?) :rotfl:. If he and/or the OR don’t like it tell them to get lost.

Make sure you have no financial “links” with BF such as any joint accounts because these could affect your own credit file.

You might however, like to find a way of telling your parent that BF had a "small disagreement" with HMRC just in case.