Bankrupt ex including house sale

Vulcan76

Hi, I'm not sure if I have posted in the right section but here goes.
I brought a property with an ex partner in 2002. I lived in the property for a couple of years until he relationship dissolved and then moved out. We had an understanding between us that if the house was sold I would get half of any equity or profits. I contributed £12,000 towards the buying of the house.
I haven't spoken to him in years. We have both moved on and I moved quite far away. I was told by a mutual friend last week that my ex had gone bankcrupt. I checked this online and he did infact go bankcrupt in 2009. I have checked my credit report and I'm still affiliated with him financially. I was aware that he took out loans on the house for improvements. The loans were in joint names and secured upon the property. These were I imagine tied in to his bankcruptcy.
Now I have just checked and the house sold last year for double what we paid for it (£118,000). Obviously I am annoyed because he hasn't mentioned this to me. I feel very stupid that I hadn't questioned the trust in our agreement and I have absolutely no idea what to do. Or if I can do anything.
I'm presuming there is nothing I can do at all and I just kiss goodbye to my money. I had moved abroad for 10 years and not long come back hence why I had just left him to it. I'd appreciate any advice

Vulcan76

Oh & he refuses to talk to me. I've even been to his parents. They won't tell me anything. I paid for half of the mortgage for 2 years and the deposit. Is this now lost?

jonesMUFCforever

If the house was in his name then you have 2 hopes - no hope and Bob Hope.

If you can prove what you say maybe have a chat with a solicitor, you say that you purchased the property but if this is the case then he would not have been able to sell without your say so (or for that matter get loans secured on it)?

Vulcan76

Hi, I was named on the mortgage and the deeds. We brought the house together. I have been told by a mutual friend who helped him through the bankruptcy that the house formed part of the bankruptcy. He handed the keys back to the mortgage company and put that down with his other debts. I was aware of the loans. I signed for them for him. He had up to that point continued paying for the mortgage. He had a good job and was able to afford the repayments of the loan. He fell behind when he lost his job. I struggle to understand why he hasn't mentioned anything to me as I would have actually helped if he had. I feel betrayed. Wether that was through shame or embarrassment I don't know but it's the principal. This has severely affected my credit rating too despite being a few years back. I have sought a little legal advice from CAB, they seem to think that the insolvency service should have notified me but if I wasn't residing in the country then they couldn't.

Tom99

If you were legal owner I don't understand how a solicitor would be able to sell the house without your consent.

Is there any way of getting the transfer document from the LR to see who did sign it?

Vulcan76

I have been told by the land registry that there was a 'form J restriction' placed upon the title for the registry.
The insolvency service have said that they sent me a letter advising that the debtor would not regain his half of the title. (I have never seen it) It was from the moment he entered bankruptcy owned by the official reciever.
They have to give 3 years apparently to see if the value rises in the house. The house was sold in December of last year, the next sale before that was when I purchased it with my ex. So according to that it lay empty for 7 years! I have actually seen the for sale photos on a for sale website and it is decorated how I decorated it. It still has furniture in it that I recognise in the photos.
There was a 'seperation agreement' drawn up when we split but if I am liable for half of his debts then it's not worth the paper it's written on and more to the point I want what is rightfully mine. We brought the house for £125k, I paid £12k deposit. At the time of bankruptcy the mortgage was for £104k. His debts were £59k therefore eating in to my half. The house has sold for £235 so I calculate that I am owed £100,000!! If the insolvency service have notified me of my legal right to purchase his half/share then they have not taken the seperation agreement in to account either. All I originally wanted was the £12,000 I put in in the event it was sold.
So out of interest a house cannot be legally sold if the other owner cannot be found? At all? This is getting quite interesting for me.

Tom99

I would post that question on the LR thread they seem quite good at providing answers.

https://forums.moneysavingexpert.com/discussion/5685941

Mouse007

There are ways to sell a property when a joint owner can not be traced, it involves a court order.

It certainly sounds like you are entitled to half the equity. Write to the OR who handled this, set out the facts clearly and demand your money back which they are holding for you.

Vulcan76

Thanks for your responses. I will contact the OR tomorrow as I have found the bankruptcy notice online so tells me who was dealing with it.

debt_doctor

Hi,


If you were joint owners then the starting rule certainly is that you were entitled to have your (presumed 50%) interest returned to you.


I am wondering if it was actually the Trustee that took action to sell the property or whether the mortgage Co. took possession action from non payment of the mortgage?


You say that the property appears to have been empty for 7 years - has it accrued 7 years mortgage arrears that has eaten in to the equity? - Hope not, but it is a thought.


Contacting the OR or the Trustee is certainly a good first step - I hope it works out for you.


DD

silvercar

The keys may have been sent back to the lender. The lender may then have gone to court to repossess, due to non payment of mortgage.

That means the lender repossessed without needing your signature.

At that point either the lender paid all the equity (after mortgage, arrears, repo charges etc) over to the Official receiver and the OR should have retained your share after attempting to get in touch or the lender paid to the OR the bankrupts share of the equity and still holds your share.

Either way, someone should have your money.