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Bankruptcy and home

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
16 replies 1.7K views
FeralcatFeralcat Forumite
19 posts
edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Hi
Never posted before but am terrifed to say the least.
I took out a loan in my name 8 years ago, now 3 years ago I had a mental breakdown, which was sereve I tried to take my own life, I tried carrying on but lost many many jobs, and after this the doctor had signed me off indefinitely.
I filed for bankruptcy, am terrified about my husbands home, it's in his name and we have been married 12 years, I made mortgage payments for 5 years while he was the carer of our son while I worked.

When we married he asked if I wanted to be added to the mortage I said no, the women who interviewed me was asking questions about the house which i didnt know as i never discuss it. I dont want anything to do with it and I dont want a share.

I cant sleep since the interview I keep being sick, and all i can think about is how I have failed my family and they are going to suffer.

Please please can someone help me?
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Replies

  • FeralcatFeralcat Forumite
    19 posts
    Sorry to ask is my husbands home at risk?
  • edited 8 May 2019 at 6:16PM
    TheGardenerTheGardener Forumite
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    edited 8 May 2019 at 6:16PM
    Hi and welcome. Have you got access to mental health support? Its important you get some. It is also the case that there is no debt problem that can not be solved so try not to get ill.

    Did you get any advice of one of the free debt charities before you went BR? Stepchange, National Debtline or CAB?
    If not - its not too late to try them.

    The OR may be trying to work out if you have what is called beneficial interest (BI)in the home and whether that can be used to raise money for the creditors. You can't 'chose' to have BI - you either have it or you don't but you do need specialist help with this.

    How much debt was included in your BR?
    How much equity is in the house?
    Does you husband know you have gone BR?
  • FeralcatFeralcat Forumite
    19 posts
    Hi
    The debt is 20k, there is lots of equity on the property, I dont want anything to do with the house, they cant force this on me can they?

    Will he have to remortgage?

    Am so scared
  • elsienelsien Forumite
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    Feralcat wrote: »
    Hi
    The debt is 20k, there is lots of equity on the property, I dont want anything to do with the house, they cant force this on me can they?

    Will he have to remortgage?

    Am so scared

    It's not that straightforward. Because you're married, if you ever divorced (just as an example) then the starting point for the split of all marital assets is 50/50.
    You have paid the mortgage at times so you couid potentially have a beneficial interest in the property even if you're not named on anything.
    You need to get more specialist advice.

    What was the loan for?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • FeralcatFeralcat Forumite
    19 posts
    It's not right nor fair, I said to my husband before we married if we divorced I didnt want the house nor anything from it.

    My husband by law cant be forced to pay my debits, but I can be forced to accept beneficial interest? That's wrong.

    The loan was for a car to buy a car to get my son to and from his hospital appointments as he is disabled

    I then completely went off the rails and got another loan.

    I honestly cannot cope with the guilt of this, I did get advise and they said the risk to the house was low.

    Am worth more dead through my private pension from years ago than alive.

    I tried so hard for 3 years to get through my mental health and hold down jobs. I honestly have given everything I have and I have nothing left to give.
    And now my family have to suffer the stress of something being released from the house? Which will greatly upset my husband. I cant bear to see that I honestly can not.
  • TheGardenerTheGardener Forumite
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    Please don't get so distressed. There is a way thought this. I doubt you are going to lose the house or have to remortgage
    The OR may find there is only a small, if any, BI amount due and it maybe that you can buy the BI back from the OR. Its not about forcing anything on you - its yours anyway regardless.

    The OR is not expecting your husband to pay your debts -
    Did you declare his income on your SoA?
    Does he know you have gone BR?
  • FeralcatFeralcat Forumite
    19 posts
    I did declare his income and he knows am going bankrupt, he didnt know about my debits really until about a year ago.

    How do I buy it back, I have no family or friends, they abandoned me when I became ill 3 years ago.

    My husband only just earns enough for us to live.

    We never went on holiday he put everything into the house to secure our sons future, as his disability means he may never work.

    And the guilt hanging over my head about that hard working going to waste is to much to bear.

    I need help
  • TheGardenerTheGardener Forumite
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    You do need help - make sure you contact the mental health services for your area and go back to the debt charity you spoke to before for reassurance.
  • debt_doctordebt_doctor Forumite
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    Hi,

    It is right to mention the rules about beneficial interest but this is bankruptcy law not family law.
    I have dealt with personally or overseen hundreds of bankruptcies over the last 12 years and I have never once seen an OR attempt to realise an interest which has the sole legal title of the non bankrupt partner - including several where the home was owned outright.
    One of my colleagues was a level 2 examiner in the Insolvency Service for 10 years before he joined my team and he has never seen it either.

    I can't guarantee you wont be the first, but I would be amazed if the OR tried to make a claim against the house - no matter who may have contributed to the household bill or mortgage.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
  • FeralcatFeralcat Forumite
    19 posts
    Sorry am crying a little so can't see straight,.so my husband house should technically be okay?

    If this is true and it happens, I may finally be able to start getting my mental health sorted...

    I can't even speak or type right now...

    If I was standing in front of you guys i swear i would hug you till you popped. (I do have social anxiety so I couldn't look at your face but I could bear hug you)
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