Joint mortgage on property in Ireland with ex-wife who has filed for bankruptcy in UK

moneyshot

Hi
I am a long time lurker first time poster and I am hoping someone can give me some much needed advice.

My Partner and his now ex-wife built a house together in2005 in Ireland and have a joint mortgage on the property. In addition to the joint mortgage which iscurrently €250,000 they both had separate personal loans (I believe for thewedding and block of land) somewhere in the region of €25,000.

They separated in 2006/7 and a separation agreement wasdrawn up which specified if the house was sold they were both entitled to halfthe proceeds. My Partner moved overseas (Canada)early in 2008 where we meet and have been living since (I’m originally fromN.I).

They put the house on the market but since there were nooffers they rented the property out which covered the mortgage (interest only). When that rental lease ended my Partner’s exmoved back in the house and my Partner helped by paying half of the mortgage (stillinterest only).

His ex moved out of the house in Feb 2011 and moved to theUK (England) to live with her new Partner in his home. He has the land title and I believe themortgage is only in his name, I am not sure if she was contributing to hismortgage. At this point their house wasagain leased at a much lower rate and both my Partner and his ex contributed tomake up the shortfall in the mortgage (still interest only-renewalapplication).

My ex has worked incredibly hard over the last 12-18 monthsand has recently paid off all his personal loans while still covering his halfof the mortgage payment (as I mentioned before some €25,000 and now has nodebts whatsoever) We live in a rentalproperty here, own our car and have no credit card debt.
He received an email from his ex last week telling him thatshe had taken legal advice and was going to declare herself bankrupt. She is due to go on maternity in a few weeksand will be on statutory maternity benefit for a year, she still has all herpersonal loans (again I am not sure of the exact figure but believe it to beabout €25,000) and also the shortfall on the mortgage (about €120 per month). She says they will not get another year ofinterest only which mean they would each owe approx. €300 extra per month. She has told the current tenant to vacate,why I am not sure but I believe it’s because she is currently claiming TRS onthe property (even though she is not living in Ireland).

So finally to my question(s):

Is there anything he can do about her claimingbankruptcy? I have checked on the LondonGazette and found she has already filed in early March. It just seems such a shame that she gets towalk away when he has put so much effort into paying off his loans…

The house is in negative equity to the tune of about €50,000. Latest price estimate for sale was €200,000about six months ago. Given that she hasdeclared bankruptcy if the property were to be sold would my Partner be liablefor the full $50,000 shortfall or only half of that €25,000?

I am concerned that €200,000 is an overvaluation given thecurrent climate in Ireland, if the house were to sell for only €150,000 thatwould mean a €100,000/€50,000 deficit payment? Would the current mortgagecompany just sell the house then agree to a payment reschedule? Or can myPartner sell the house privately? Or how would he finance the repapyment

If alternatively he decides to keep the property he will beliable for the whole mortgage payment? Can he purchase her share from the Office of the Receiver (OR)? If the property is in negative equity is thiseven possible? Does it make any difference that the property and all the debtsare in Ireland, i.e. will the OR have jurisdiction?

As I say I am really just looking for some advice, I havetold my Partner he needs to approach a solicitor to handle this matter on hisbehalf. If anyone has been in a similar situationand could recommend someone that would be really useful. Also thoughts on whether to sell theproperty, try and keep it on (given he has no other debts) or the third very unpalatable option for him to claim bankruptcyhimself, would be helpful.

Thanks and apologies for the (VERY) long post.

MS

exarmydreamer

I can't really help on this but I will bump you up the board a bit to see if someone can give you some advice.

Anondebtadvisor

The Ex's liability for any shortfall from the property will be included in the bankruptcy, whether that shortfall comes about from the property being sold or repossesed in the future.

This means that your partner will be responsible for the entire amount of the debt given that it is joint and several liability.

Is your partners ex paying part of the mortgage payment?

Your partner could decide to negotiate with the OR to buy her beneficial interest and keep the property but i doubt he would receive any payments from her and would therefore have to pay the whole mortgage every month.

moneyshot

Thanks Anondebtadvisor

So that means if the property is sold for €200,000 for example (mortgage €250,000) then my Partner will owe €50,000 to the mortgage company?

She has been paying half of the mortgage payment yes - for the last couple of years they have been covering the difference in rent and payment about €120 each per month. He puts the €€ into her account and she pays mortgage. He does not have the bank details so has sent a request to the mortgage company for statement as we are not sure if she has actually been paying the mortgage. All mail directed to the property (i know Partner should have been more on top of it) we have also changed his address details too

dojoman

moneyshot wrote: »

Thanks Anondebtadvisor

So that means if the property is sold for €200,000 for example (mortgage €250,000) then my Partner will owe €50,000 to the mortgage company? Unfortunately yes

She has been paying half of the mortgage payment yes - for the last couple of years they have been covering the difference in rent and payment about €120 each per month. He puts the €€ into her account and she pays mortgage. He does not have the bank details so has sent a request to the mortgage company for statement as we are not sure if she has actually been paying the mortgage. All mail directed to the property (i know Partner should have been more on top of it) we have also changed his address details too

Hope this helps?

moneyshot

Hi Dojoman
Thanks yes it definitely helps
But also makes me feel incredibly sick!
Ex wrote in the email, ..."this will work out really well for you, you'll only be liable for half the shortfall if there is any"
Which I didn't believe and hence the questions on here. I thought someone would have been through something similar and would be able to confirm. Appreciate the help.

Anondebtadvisor

She has probably been advised not to make further payments towards the mortgage - if she has not been paying your partner should stop making payments to her ASAP

moneyshot

Thanks for that anondebtadvisor, he had just deposited 4months payment in the account two days before she emailed and told him about the bankruptcy (sends 3/4 months at a time because of exchange rate and bank charges). He definitely will not be sending anything more!