Beneficial Interest concern

JHedger

Hi,

I'm looking for some clarification on the calculation of beneficial interest on a home in bankruptcy proceedings.

I live in a house with my wife which we bought in 2012. She is the sole name on the mortgage and on the deeds. She was also responsible for 100% of the deposit.
My contributions to the house have been monthly bills inc utilities and council tax, as well as a lot of the cost of redecorating when we moved in - painting etc.
There is now close to £100k equity in the house.

My wife has an excellent job and salary, and my work is self-employed and has always been a bit hit and miss, but much more miss in the last few years. We keep our finances completely seperate, and I have accrued approx £25k credit card debt, hence seriously considering bankruptcy.

My big concern is how my bankruptcy would affect my wife, and specifically how much the OR might calculate as my beneficial interest. As the house is in my wife's name, and she pays the mortgage, any idea how that BI might be calculated?

tickles2

Similar situation my end. Because my wife paid the deposit, the deeds and mortgage are in her name, and the mortgage is paid by her, the OR confirmed in my interview last week that he has no interest at all in the house.
From what you've described in your post, I don't see your situation as being any different. Hope that helps put your mind at rest.

tickles2

Incidentally, I'm currently looking for work - I completed my Statement of Affairs showing the figures I would normally pay towards the household - Zero mortgage, 100% of all household bills.
The OR has pointed out that once I am back in work and the figures need discussion, irrespective of any arrangement I may have with my wife, he will expect to see that I am contributing 50% towards the bills not 100%. This understandably gives potential scope for an IPA for me to contribute to the debts have with my creditors.

I am now bankrupt, so my starting to contribute 50% of the mortgage and only 50% of the bills will make little difference as with the existing arrangement my wife has zero disposable income after normal household outgoings.

Someone else here may like to back me up on this, but from my recent experience, unless you have joint assets or debts in your and your wife's name, or she is / has been a creditor you have made significant repayment of a debt to, my understanding is that the OR will have zero interest in your wife or anything she owns.

silvercar

OR will have zero interest in your wife, except to establish that she could and should contribute to joint bills if she has income.

She can decline to give details of income and the OR will then assume she can afford 50% of joint bills. This would be the sensible option if she has greater income than you, as you wouldn't want the OR to assume her greater income means she should contribute more than 50%.

I wouldn't go down the route of you contributing to her mortgage, in case that leads the OR down the path of you having an interest in the property.

If you get some work and are in a position to notify the OR that you have a change in circumstances, then you need to consider your statement of affairs and make sure you claim for anything legitimate, but I would be inclined to still not pay the mortgage - even if you can only claim 50% of bills. See how that pans out.

Remember that the setting of an IPA needs to be before the 12 months discharge point.

debt_doctor

Hi,


I have never seen action taken against property solely owned and paid for by the non bankrupt partner, even when such properties are owned outright with no mortgage.
DD