Will single bankruptcy effect husband, house & business!?

beckyg40

Hi, I’m thinking seriously of bankruptcy. I’m not eligible for an IVA and my debts are over 20k if I file for bankruptcy myself how will this effect my home? It’s mortgaged but only in my husbands name, I’m not even on the deeds. Also he’s worried it could effect his business (he’s self employed with a business partner) my debts are all in my name only but don’t want to jeopardise our home. My husband is thinking of remortgaging our home to clear our debts but this would mean we would be in our home for at least another 3 years before selling and moving on which is what we want to do. Obviously I think my debts need sorting ASAP but I feel so guilty about my debts & would prefer this had no impact on my husband & our home.

MEM62

The OR cannot take assets that belong purely to your husband. However, there is likely to be some impact for him, however minor. At the very least his credit standing will take a hit if you are financially linked.

SpongebobUKBF

I have been in much the same position 15 years ago when my business failed and I was forced into bankruptcy.

The house was in my partner's name as it had been her house when we met some years earlier.

My partner suffered absolutely no adverse effects from my bankruptcy. Indeed, we moved a couple of years later and she was able to get a bigger mortgage with no problem at all.

All in all, going bankrupt was the best financial decision I ever made! £80k of debt disappeared overnight and I didn't have to repay a penny. I experienced no "stigma" and the experience was a wholly positive one.

I would advise you to avoid an IPA or IPO by reducing your income. If your husband increases the mortgage before you go bankrupt this will help in reducing any surplus income in your household. Ideally any surplus after essential expenditure should be less than £100 per month. This will avoid any IPA or IPO.

The only difference in your case is that you are married. I have a niggling feeling that the OR might be able to demonstrate that you have a beneficial interest in your home - this was not the case with me as we were unmarried. You might want to check this out.

Minkym00

The question of beneficial interest in a spouse’s property has been asked on this forum a few times recently and it’s never come to anything.

pcoventry

No, if you are not linked then nothing will happen to them - BR is personal and no longer based on address. I lived with my dad whilst BR and he's had a perfect credit score for 50 years - He purchased a few houses whilst I was living there - no problem.

If you are linked I would get unlinked just because as mentioned above he will take a small hit but if he is not looking for credit he won't care anyway