Secured loan in joint name

kayalison_2

He's already aware that It's secured on the house and the consequences as I wrote to him several weeks ago telling him of my intentions. He text me a few days later asking what we could do to **** the loan off. I responded by telling him that the only way we could be rid of it would be to pay it off in full, or sell the house!

robber2

kayalison wrote: »

I've been told I can't file for bankruptcy because of the 'beneficial interest' in the property due to my name being on the paperwork, and having made the repayments over the last 10 years.

I'm pretty sure that's nonsense but hopefully an expert will be along shortly to confirm. Who told you this? Not your ex by any chance?

Rob

Pixie5740

kayalison wrote: »

At the moment I have £16k on the DMP - I am paying £80 a month to a company who distributes this to my creditors. The already existing CCJ is in the £16k and although this is in both mine and my ex's name, I am paying for this and have been since 2009. Then there is the £20k outstanding on the secured loan.
I've been told I can't file for bankruptcy because of the 'beneficial interest' in the property due to my name being on the paperwork, and having made the repayments over the last 10 years.

You are paying a company for your DMP? :eek: STOP!!!! Immediately, right this second. Never ever pay a company to deal with your DMP.....ever.

Either negotiate with your creditors yourself or use one of the debt charities, CAP UK, National Debtline or Step Change. Don't give money to blood sucking leaches who will take a cut of your money therefore prolonging your DMP.

£80 a month to repay £16k is going to take over 16 years to repay, longer since your DMP is through a company rather than a charity. F**k that! With £16k of debt you could potentially get a Debt Relief Order and end this in 12 months.

Who told you that you would be unable to go bankrupt?

kayalison_2

The CAB told me this! They also told me I couldn't do the DRO as the 'beneficial interest' would be seen as an asset.
I feel like I'm being given unreliable information from all angles!

Pixie5740

What I'm about to say comes with the caveat that I have no legal training or qualifications whatsoever.

I think CAB have given you a bum steer. Yes by paying the secured loan you might be building up a beneficial interest in the property. However, to get that beneficial interest you would have to go to court unless your ex is willing to grant you the interest. That's from CAB's own information about housing and relationship breakdowns.

Even if you did have a beneficial interest in the property that wouldn't exclude you from debt solutions other than a DMP.

BrassicWoman

Partner, not spouse - makes it a right PITA to claim a beneficial interest and it may be worth F all if there is debt against the house secured which ranks higher than your interest.

Ask on the bankruptcy board, there's plenty specialist experience on there.