Bankruptcy and the home

PoloPony2014

I would like to know if anyone can help me with the following question. I am about to file for bankruptcy for old credit card debts run up years ago.


My husband owns our home and got a mortgage in 2001 in his name only as my credit history wasn't great. Stepchange say that the OR will say that as I have lived in the house since it was bought (13 years ago) and raised 3 children in it then it would be classed as partly mine and taken into account with my bankruptcy.


However I called the Official Receiver and they said that "providing I haven't contributed to the value or increase in value of the property then it would not be included in my bankruptcy"


Can ANYONE clarify the situation for me ?

National_Debtline

Hello there,

It's more than possible to live in a property for a long time and not develop a beneficial interest. What's important to consider is whether or not you have contributed financially either to the purchase of the property or significantly to the household bills etc. There have also been court cases which have made clear that untaking a lot of maintenance work has generated a beneficial interest too.

It can be a complex area and one that we would generally urge someone to seek qualified legal advice on. You may also be able to glean furtehr information via the Insolvency Service's Technical Manual: http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter33/part2/part_2.htm

Best wishes,

David.

Best wishes,

David @ National Debtline.