Bankruptcy and Partner Homes

meepatme

Am keen to get feedback on what has happen to other that may of been in a similar situation.

My and my partner rented a house for 3 years, and for the last 9 months she brought and has a mortgage in her name only. Due to debts I have not contributed to the house or mortgage. We have no joint bank accounts. I help towards some bills and give money for what be rent etc just worried could they still put something against the house she has mortgage that we live in?

R

National_Debtline

Hi

It is technically possible for someone to build up ‘beneficial interest’ in a partner’s property, even if the mortgage is in the partner’s sole name. This can happen when contributions are made towards the mortgage, household finances and things like home improvements.

I’m afraid there is no definitive guidelines on this though as the amount of beneficial interest a bankrupt has built up is at the official receiver’s discretion. It’s hard to say whether they would deem it worthwhile pursuing.

As you say in your post, someone who has been in a similar position might be able to give you an idea of what happened in their case.

James
@natdebtline

meepatme

Thanks for the feedback James iv emailed few only lawyers to see what they recon.

Sounds like maybe an IVA would be safer perhaps least I dont need to worry about my partner taking a bit because of my mistakes

meepatme

Else moving out i guess

tigerfeet2006

Nah! You'll be fine to live there. You won't have built up any beneficial interest. Not seen an Oar claim BI in quite a while.

mwarby

I'm assuming you paid nothing towards the deposit ? In which case even if you had paid all of the mortgage for the last 9 months, you would still have a pretty tiny stake(if it came to it what about solicitors fees in buying it, survey fees, moving costs, these would all reduce that relative contribution).

I'd think given the potential stake you have will be very small (especially as it doesn't sound like your paying all mortgage)and the wrangling needed to prove it, that it wouldn't be worth it for the OR.to try and recover.

debt_doctor

Hi,


In 10 years neither myself or my 11 debt case workers have ever seen a trustee / OR attempt to raise an interest in the home solely owned by the non bankrupt.
This is especially true in your case as you have provided nothing to the house.
I have seen cases where the bankrupt had made contributions to their non BR partners mortgage for 20 years - still no action against the property.
DD