Advice for ex-partner of someone who is going bankrupt

kate-eat

Hi,

As I'm not the person going bankrupt I am struggling to find information so hopefully someone can help.

My ex and I are very close to filing the divorce forms. I have stayed in the house with our 2 children. There is a main mortgage in his name only which I have been making the payments on since he left 2.5 years ago and also a secured loan which is in joint names which again I have been making the payments on. I was struggling to afford this but have just lost my job so cannot keep these payments going at the moment.

A relative may be able to afford to buy the house outright and doing this through his OR once he is in the bankrupcy proceedure seems to be the recommended route?

Do I need to get him to file for divorce first to protect the mutual arrangement we have for child maintainance or should I try and get him to rush through the bankrupcy as I cannot afford to pay the mortgages??

Thanks in advance

tigerfeet2006

The OR will allow any payments that have been agreed in the divorce as long as they do not exceed CSA recommendations, so no need to worry on that score.

PippaGirl_2

Kate, how much equity is in the house? Is the house in joint names? I ask as it unusual for secured loans to be in anything other than the same format as the house deeds ie only joint secured loans allowed on a jointly owned property.
I think it is really important for you to seek expert legal advice such as a solicitor in your case. Many offer free half hour sessions. That way you will find out how best to proceed wrt the house and the divorce.
Even if the house is in your stbx's name, the fact that you have been married may mean that you have a BI in the property and would be awarded part of the equity, or indeed the whole property in some cases as part of the divorce. Obviously BR will impact this but it doesn't mean to say you have no rights over the house or any equity, especially as you have been solely making payments on its finance recently. Do take some legal advice over this.

eta the reason it is important for you to get your own legal advice is the OR will only have the interests of your stbx's creditors primarily and partly your stbx's interests and they won't have you as the same concern. Your own legal advisor will be able to protect your interests knowing your rights.

kate-eat

Thanks for the replies. There is negative equity in the property and the 1st main mortgage is in his name only and the 2nd secured loan is in both names as the lender insisted on it. I am pretty sure that I can prove BI the reason I was not put on the 1st mortgage is because I had another property at that time in my name only and the best deal we could get was in his name only - however money from the sale of the house in my name went back into the house in his name!
I definately will get some legal advice I just like to know vaguely where I stand before getting into something so I can get the best use of the time.
If anyone has anything further to add it woud be much appreciated

Thanks in advance, Kate