Bankruptcy. Again. BI.

theworldsgonemad

Hi everyone

I really hope someone can offer some advice to me.

I declared myself bankrupt due to ill health back in 2008.

Unfortunately I now find myself in the same situation again almost 11 years on and I am really worried

In 2008 my wife bought the beneficial interest in our home (joint owners). What will happen this time regarding the house if my wife has been the owner of the B.I. since 2008?

I really hope someone can help me.

Many thanks for reading.

TheGardener

In the absence of other more qualified responses: My guess would be that whatever equity the house has accumulated since 2008 will be divided between you and your 'share' will be an asset in BR.

silvercar

I would have thought the opposite. If your wife owns the beneficial interest then it is all hers.

TheGardener

silvercar wrote: »

I would have thought the opposite. If your wife owns the beneficial interest then it is all hers.

I thought that - then I thought the OR is bound to look at how much the house is worth now, 10 years later and consider if the BR has an interest in any increase in value since then - have they both being paying the mortgage etc? It was just a thought ...

You may well be right silvercar and chances are - unless its a London or SW address - it may not be worth any more than it was 10 years ago in terms of market value. However, have they paid down much on the mortgage?

OP - have you any idea of the property value? Is it likely the property will have accumulated any value - is it a repayment mortgage?

theworldsgonemad

Thanks for your replies.

It is an interest only mortgage with 12 years remaining but I would have thought the property would have increased considerably in value since the original valuation in 2008?

TheGardener

theworldsgonemad wrote: »

...but I would have thought the property would have increased considerably in value since the original valuation in 2008?

Depends where you live - round my way prices are only just back to 2008 levels - in some cases lower!

silvercar

See this thread here:

https://forums.moneysavingexpert.com/discussion/5946696/beneficial-interest-query

debtdoctor knows his stuff. If someone has bought the benificial interest they have bought it all. Imagine buying a plant, you buy it, it belongs to you. Then it grows, it still all belongs to you.

TheGardener

silvercar wrote: »

See this thread here:

https://forums.moneysavingexpert.com/discussion/5946696/beneficial-interest-query

debtdoctor knows his stuff. If someone has bought the benificial interest they have bought it all. Imagine buying a plant, you buy it, it belongs to you. Then it grows, it still all belongs to you.

Excellent - great point.

coolcait

Although the plant analogy is lovely, it's worth making sure that it's correct.

This thread is talking about beneficial interest bought out in 2008. The linked thread is talking about buying out beneficial interest now, based on a 2017 bankruptcy.

Things are different in Scotland - the 'beneficial interest' thing doesn't exist, it's all about the equity.

I would be very surprised if a Scottish trustee dealing with a second bankruptcy didn't look at how much equity had accrued since the first bankruptcy - and then ask for half of that.

Is the approach to beneficial interest in those circumstances that much different?

silvercar

coolcait wrote: »

Although the plant analogy is lovely, it's worth making sure that it's correct.

This thread is talking about beneficial interest bought out in 2008. The linked thread is talking about buying out beneficial interest now, based on a 2017 bankruptcy.

Things are different in Scotland - the 'beneficial interest' thing doesn't exist, it's all about the equity.

I would be very surprised if a Scottish trustee dealing with a second bankruptcy didn't look at how much equity had accrued since the first bankruptcy - and then ask for half of that.

Is the approach to beneficial interest in those circumstances that much different?

Scotland is a law unto itself. Maybe OP could say whether they are in Scotland or England/Wales.

Your comment adds to my opinion that beneficial interest is not a specific amount, whereas equity could be.

theworldsgonemad

silvercar wrote: »

Scotland is a law unto itself. Maybe OP could say whether they are in Scotland or England/Wales.

Your comment adds to my opinion that beneficial interest is not a specific amount, whereas equity could be.

Hi, I am in England.

Thanks so much for all th replies, certainly food for thought.