Bit of advice!

redmanc35

I know the procedure for declaring bankruptcy, I've previously had to do this nearly 10 years ago however I don't have the knowledge to assist my sister.

Her current partner had his house repossessed(mortgage with northern rock), he owes approximately £80k which is a joint debt with his ex partner.

He spoke to northern rock as he is struggling with repayments and they will not deal with IVA's. He was given a number to ring to discuss bankruptcy,I am not sure which company they passed him to but the women on the phone told him that my sisters house(which is in her name and all bills in her name and always has been) will be at risk now because he has been living there.

Is this correct? I thought his debts was his and that they could only seize assets that belonged to him.

Could some give me some advice to assist my sister.

Mouse1812

How long has your sister's partner been living with her and has he ever contributed towards the mortgage payments?

The suggestion is he may have some benefical interest in her house, but that can be rebutted.

Anondebtadvisor

They would say that, wouldnt they? NR wouldnt have a claim on your sisters property but they should seek some advice to see if an IVA or bankruptcy is an option

Most creditors say they wont accept IVAs but most people working in a collections centre have never heard of an IVA so their knowledge is limited!

redmanc35

Thanks, I know he pays money towards bills for obvious reasons and they have a baby together. But paying towards mortgage I couldn't be sure. They said if the house has any equity in it over the next few years then they'll take the house if it doesn't then they will leave it. To me that doesn't sound right at all especially since she's owned that house way before they met.

I've told her to kick him, she's losing sleep over his mistake before they met which isn't fair on her.

alastairq

I've told her to kick him, she's losing sleep over his mistake before they met which isn't fair on her.

Or him, for that matter?

When someone starts to co-habit with another, unless the home is rented, then that someone will eventually start to accrue a beneficial interest in that property.

Which simply means, they star to acquire a percentage share in any equity.

This can be regardless of whether they have actually, physically, contributed to the mortgage.
[because, as in this case, the partner has contributed towards the household running costs, that is deemed to 'free-up' the mortgagee's income for paying the mortgage]


It is this beneficial interest that NR is thinking of trying to tap into, it appears.

However, the degree of beneficial interest can be challenged by your sister and partner, as Mouse suggests.

Mouse's post at the bottom of the link sums up BI nicely.

https://forums.moneysavingexpert.com/discussion/comment/59151581#Comment_59151581


Much will depend on how long they've co-habited?

Mouse1812

alastairq wrote: »

Much will depend on how long they've co-habited?

and how much equity there was before he moved in, and how much house prices have moved up since then and how much has been paid off the mortgage

My guess is it will be bu88er all

alastairq

In monetary terms, probably.....but in percentage terms, how much?


If it can be argued he has accrued a percentage of equity, can the creditor apply for a charge based upon that percentage?

Mouse1812

You can't get a charge on a percentage