Can OR report Beneficial Interest without proof?

wandablake

Hi

Don't know if this is unusual situation but I would appreciate some input please.

After a fraught period beforehand, I was made bankrupt voluntarily last month and during the interview the OR spent a lot of time exploring whether I had any beneficial interest in the property I live at which is owned by my spouse. The rest of the interview was very straightforward.

These are the items we discussed around beneficial interest during the interview:-
I did not purchase the house with him, I have never been on the deeds.
I did not pay any of the deposit, did not make any mortage repayments
I did not pay for or contribute to home improvements
I did not pay any utilities (gas, elec, water)
I did not pay council tax ever
I did not gift my husband money
We are not divorcing
I have worked for 16 of our 18 years of marriage
My husband owned the only other property we lived at 15 years ago and paid all bills

My bank statements reflect the above, I have copies since I went to online banking in 2011. The land registry will reflect the legal ownership. I am telling the truth when I say I have never had financial input into his house.

At the end of the call, the OR said that the only thing that seemed worth of possible investigation from their side was beneficial interest and a valuation.

I did check with two debt charities before applying for bankruptcy and they seemed to think there was no basis for beneficial interest.

Can the OR just decide there is a beneficial interest despite the land registry, interview details and bank statements, credit reports?

Will the creditors report state findings or/and assumptions and is an assumption not based on evidence available sufficient grounds for an Insolvency Practitioner to 'chance their arm' at getting money from my husband's property?

I would hate for my spouse to be arguing with an IP when he has so generously provided all the outlay during our marriage.

Thank you.

RattyIrk

My own view is they will struggle. Nothing to stop them having a punt I'm afraid but in light of the what you say it would be uphill from their side.

My own situation is a bit different. Partner owns property but I am on mortgage. She owned a property when we got together over 15 years ago. I briefly went on the deeds for mortgage purposes and we had a trust deed. She bought me out of that a few years later, we got valuation etc.

Following that I had to stay on mortgage but not the deeds otherwise would not get mortgage. I paid mortgage she paid everything else. Was just most convenient way of dealing with outgoings.

After the new property was bought we did a cohabitation agreement reaffirming I had no interest in the new property either.

The OR asked some questions during first interview but nothing in further in following six months. They have not asked for copies of any of the associated paperwork although I can provide it easily enough if they do ever want copies.

in my case I was bought out of any interest in the previous property and our intentions as to beneficial ownership are documented. They could still have a go I suppose.

Point of my relating that is my position as to beneficial ownership is genuine as is yours. They are far more likely to be interested in people who have tried to put out of reach an asset they really do have an interest in.

wandablake

Thank you RattyIrk. It is useful to learn of your experience and it is good to know that you feel that you were treated fairly.

debt_doctor

Hi,

In 13 years I have NEVER seen a potential beneficial interest pursued in a property solely owned by the non bankrupt partner and neither have my 14 debt caseworker colleagues.
The starting point is the 100% of the beneficial interest lies with 100% of the legal title.
I have seen a fair few bankrupts in this position where the partner owns the house and it has never been a problem.
DD