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Joint mortgage & bankruptcy
confused1975
Posts: 4 Newbie
Hi. I bought a house several years ago with my girlfriend. We have since separated and she stayed in the house but the house is still in both of our names
I haven't contributed to the mortgage in 2 years as am renting elsewhere. I am now facing bankruptcy but am concerned that they will take the equity from the house despite the fact that it's really only my house on paper. Will this happen? Thanks.
I haven't contributed to the mortgage in 2 years as am renting elsewhere. I am now facing bankruptcy but am concerned that they will take the equity from the house despite the fact that it's really only my house on paper. Will this happen? Thanks.
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confused1975 wrote: »Hi. I bought a house several years ago with my girlfriend. We have since separated and she stayed in the house but the house is still in both of our names
I haven't contributed to the mortgage in 2 years as am renting elsewhere. I am now facing bankruptcy but am concerned that they will take the equity from the house despite the fact that it's really only my house on paper. Will this happen? Thanks.
I think you would need to remove yourself from the mortgage/deeds, otherwise what you describe is a possibility, yes.
I would give National Debt-line a ring to confirm weather this would be the case or not, as they have the expert knowledge.
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No easy way to say it; the official receiver will certainly look at getting his grubby hounds on your share of the house.0
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If in joint names and you contributed, even in thee past, any OR/trustee is likely to see you as having at least some interest in the property they will want to come after. She may be able to buy it back from them though, or at some point in the next few years,Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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Hi,
If you were joint owners at the time of your bankruptcy then the starting point assumption will be that you both own 50% of the equity each. You can then claim a reduced interest that you contributed nothing for the last two years.
In my view, the property is at risk of sale if your equity is greater than £10k - less than that a charging order is more appropriate.
Sadly, you do not just own the house on paper - you own the house.
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