Bankruptcy & Joint Mortgage

PDM31

Due to a business liquidation i'm faced with £200,000 of personal guarantees (loans and overdraft). I have around £12,000 worth of assets which is my share of equity in house.

I'm trying to negotiate a lower settlement figure with two main creditors but i'm aware this is unlikely due to the amounts owed. If i file for bankruptcy which looks like the only option, how long would my Wife get to purchase the beneficial interest to keep our house? My wife is the higher income earner and we have two children aged 8 and 10.

And if i have another job within the 12 months of bankruptcy can i give my wife the money towards keeping the house?

It's causing a great deal of stress at the moment for myself and my Wife (who has a well paid job and none of this is her fault). We split up for 3 months earlier this year because of it.

silvercar

If i file for bankruptcy which looks like the only option, how long would my Wife get to purchase the beneficial interest to keep our house?

Normally the OR would start looking at the equity after 2 yrs 6-9 mths.

And if i have another job within the 12 months of bankruptcy can i give my wife the money towards keeping the house?

If your wife chose to declare her income the OR would split the household costs according to income. If your wife chose not to declare income the costs would be split 50/ 50.

PDM31

Thanks for your reply. Can my Wife purchase the equity before this period?

Regarding the household costs, i was referring to the actual beneficial interest amount. If for example this was £12,000 which is something my Wife doesn't have right now could i get another job after filing for bankruptcy and save up the salary and give it all to her to pay for the beneficial interest?

Annie35

When you go BR any money you have left over after household expenses goes to the OR.

If your wife doesn't disclose her income & household expenses are an assumed split 50/50,, well she can do whatever she wants with any money she has left over

PDM31

Thanks Annie. I am currently the Director of a Limited Company and before filing for bankruptcy i will resign and become an employee of the Company. My Father will be the sole Director. Therefore i can pretty much determine by own salary for the 12 months during bankruptcy.

My main priority is to keep the house.

Clouds88

would someone else like your parents ‘gift’ you the amount you need to pay the OR? I’ve read many people do this successfully. It doesn’t have to come from your wife.