Bankruptcy and Joint Mortgage/debts

Marg77

Hi

I'm hoping someone can help me. I separated from my husband in 2008 and the divorce was made final in 2010. We have a mortgage that is still held in joint names despite the court ordering him in the divorce to remove me from the mortgage and the loan secured on the house. He still has not done this. I declared bankruptcy in 2012 and have since been discharged, he has stayed in the house and is still paying the mortgage. I have since had a letter from another creditor informing me that even though I have been declared bankrupt they have a charging order on the house and can still chase me for the money. The reason I declared bankruptcy was as I couldn't afford to pay them and other debts. What can I do, I thought everything would have been sorted when I declared bankruptcy. I am also trying to find a way to sever the links to my ex husband, so that I can have a chance in the future to rebuild my credit rating.

Any advice gratefully received

fermi

Your liability for the debt was discharged by your bankruptcy, so they are talking tosh.

If they have a charge on the property they could seek to enforce that, but they can't come after you personally for the money.

arcon5

Is that right though? Are secured debts outside of the scope of BR? It's only if the security was sold and there was a shortfall it would be one unsecured and fall in to the bankruptcy..

fermi

Correct. That is what I am saying, just in a slightly different way.

It is not 100% right to say that secured debts are outside BR.

Your liability to pay the mortgage or shortfall and the bank's right to enforce their security are two separate things.

Your liability is discharged by the BR, which mean they can't chase you for any potential shortfall or arrears as in this case because they fall into the BR.

Their right to enforce their security survives, but the only remedy they have is to force sale of the property. They cannot take action against you on a personal level, no matter the outcome.