My ex is filing for bankruptcy & we have a joint secured loan

Vespaste

My ex wife is filing for BY & we have a joint loan & it has been secured on the home we shared. If the house is sold, as neither of us live in it now, will the loan company take the money out of the remainder of what's left after the bank have taken what's owed to them. There is enough equity in it. Also jf the ex sells it for a silly price, ie to a member of her family, what would happen in respect of the loan if its selling price is only enough to cover the outstanding mortgage. I am not on the deeds.

newbutold

If it is a joint loan you are both liable up to the full amount, so the loan company will chase you for the full amount.

The house will not be able to be sold for less than the total amount of the charges on it, without agreement from the companies that have placed the charge.

alastairq

If your EX is intending to petition BR, then it would be unwise for her to dispose of any assets beforehand, for less than market value. The OR will look at such disposals.

Also, if the property is sold, only your Ex's 'share' [beneficial interest] will be sought.[you receive your percentage too, even though you are 'not on the mortgage]

longtermplanner

Vespaste wrote: »

My ex wife is filing for BY & we have a joint loan & it has been secured on the home we shared. If the house is sold, as neither of us live in it now, will the loan company take the money out of the remainder of what's left after the bank have taken what's owed to them.

yes

if the ex sells it for a silly price, ie to a member of her family, what would happen in respect of the loan if its selling price is only enough to cover the outstanding mortgage.

After she is bankrupt, it isn't her house any more and so she can't take the decision to sell it at a silly price.

If she sells it to a relative before she goes bankrupt at a silly price then the Official Receiver is very likely to overturn the sale.

I am not sure if you are just worrying about the possible scenarios here, but if you think she is seriously contemplating this you should probably do her a favour and tell her that this is a really stupid idea.

I am not on the deeds.

Is there any equity in the house? After taking the mortgage and secured loan into account? If there is and you think some of it should really be yours (eg if you paid the mortgage for 10 years or paid for an extension or new central heating or you contributed to the deposit or similar) then you need to take some legal advice as you may be entitled to 'beneficial equity' even if your name isn't on the deeds and the OR won't be able to take this.