bankruptcy and tenants in common

bisyana

My wife ans I are tenants in common in our house. If the inland revenue bankrupt me for tax owed, what is my wifes position as joint owner ?

Rrushi_Shqiptar

Sorry you said you were tenants, therefore you don't own the property. You just inform the Landlord if it is a requirement of the tenancy.

Shouldn't cause her any problems unless you have joint accounts etc.

alastairq

bisyana wrote: »

My wife ans I are tenants in common in our house. If the inland revenue bankrupt me for tax owed, what is my wifes position as joint owner ?

Your share of the asset would vest with the Bankrupt estate.

Depending on how much equity exists, will depend on whether the Official Receiver decides to [a] place a Charge on the property, or either compel a sale, or have what was your share of the equity [50%] purchased from the OR.


Your wife's share is not touched...but if the property is sold to realise your asset, then she would be in receipt of her share.

Tenants-in-common has more to do with what happens to each person's share of the property value, should one co-owner die.

All costs, etc incurred would be deducted from what was your share...with the balance going into the Bankruptcy.

debt_doctor

Hi,


Was the property always held in unequal shares (tenants in common) - did someone put in a deposit and the other did not - or was it originally held as joint tenants, but then the joint tenancy severed - perhaps by a charging order?
What would happen in bankruptcy would depend upon what is held at the land registry about the intent of the parties at the time and the reasons behind it.


DD

Rrushi_Shqiptar

SeduLOUs wrote: »

This wins post of the week! :rotfl:

Sorry OP. Don't actually know the answer to your question.

The reason is? Have I missed something? If so I bow too your greater knowledge....no need to be sarcastic when people offer help in good faith.

tigerfeet2006

Tenants in Common is a legal expression for a type of mortgage. If I remember rightly the document will detail who owns what percentage of the house ie: if someone has contributed the full deposit then they will have a bigger percentage of the equity. Hope that makes sense.

Someone will correct me if I have mis-remembered.

Mattygroves2

It's not a type of mortgage but is one of the two ways of recording legal ownership at the Land Registry. What it means is that you each own the specified share independently of each other - it can be 50 / 50 but can also be any split you like and can involve up to 4 people. If no percentage is specifically registered then the assumption is that it is 50 /50 or 33 / 33 / 33 if three people listed etc. On death you can each will your share as you wish.