Urgent advice needed mortgage and bankruptcy

Carlos1981

Hi hope someone can help

I went bankrupt last Thursday and have or interview coming up.

I own a house which is in my name only mortgage and deeds but are married with 2 children.

The house is a couple of thousand negative equity. Does my wife still have the same rights to the beneficial interest as if joint owned?

We want to buy back the BI if possible straight away with help from our parents.

Is this possible or what is the best thing to do. My wife is happy about the BR but really worried about losing the home which we really want to keep.

debt_doctor

Hi,

Your wife may have built up a beneficial interest in the house by payments to the mortgage or other household bills, but aassuming your figures re no equity are correct then a beneficial interest in nothing is nothing!
If the property is in negative equity, then the IS will revisit the issue at 2 years 3 months after your BR date. If still in neg equity at this point, the property will revert back to you at no cost.
It will revert to you quickly if someone offers the IS a deal that is likely to benefit the creditors (well actually IS fees). That figure is currently £1000 plus legal fees, which for a solely owned property is around £450.
DD

Carlos1981

Is it worth offering a 1000 now to or? I know sounds silly but really will put wifes mind at ease!!

debt_doctor

That is up to you, although of course it cant be your money.

It would depend upon whether you felt that the property would come in to equity within the 3 year period. Property of value of less than £10k is generally not sold, a charge is put on the house instead.

But if a third party can come up with the cash, the IS agree, and it's what you want, then ok.

DD

Carlos1981

Thanks DD.

Will have a chat with my wife and parents.