Shared ownership mortgage in my name only

Debtfreequeen

Hi, looking for advice on if my husband was to go bankrupt. I have a mortgage on our home which is a shared ownership property where I own 25%? the Housing Association owns the other 75% which we pay rent on. My husband is on the tenancy but the house was purchased by myself before we met. If he were to go bankrupt would they make us sell the home? We have two children and don’t want to lose the home. My husband has two loans totalling 45000 and some money he owes family. I also have my own debt but I’m ok with this. He also has a car worth about 6500 I’m assuming he will have to sell this and get something cheaper, would the excess cash then be given to the bankruptcy? Thank you

Minkym00

Your husband does not own any portion of the property so it won't be considered as asset in his bankruptcy. 

fatbelly

There's a principle in insolvency that 'interest follows title' so the house would be unaffected.

You may find that a debt adviser would blur the issue by mentioning the concept of beneficial interest

If the car is essential he would be given 2k to buy one but a 6k car would go, which is a shame. Is he sure now is the time to go bankrupt?

Debtfreequeen

We are following the steps at the moment to default the debt and then start a debt management plan, however this may take 15 years to pay back at what we can afford. I suppose we were hoping that at least with bankruptcy it will be over and done with in three years if we have an ipa. 

This has been coming for a long time, my husband has ADHD and OCD so the spending has been out of control and ended up with two large loan debts while trying to tidy up credit card debts. He no longer has access to credit and I give him an allowance so that he thinks more about his spending and I control the household finances. He is now receiving treatment and medication which is helping. 

Feeling better about finally being able to tackle our situation but losing the house would be devastating especially for our children as we would not get anouther property in our area as is too expensive to rent. 

fatbelly

Before starting a dmp why not get as much evidence of his condition as you can, and ask for write-offs

https://www.nationaldebtline.org/fact-sheet-library/debt-and-mental-health-ew/

RAS

Agree with fatbelly.
Default and ask for write offs. If you don't at first succeed, use radio silence and tell the creditors to restrict comms to postal. Open letters once a week and come back here if you get a letter before action. 

Otherwise, try for write offs again after a year or so.

Debtfreequeen

Hi just wanted to give an update for anyone who maybe reading through the forum and in a similar situation. We sent off debt write off letters and medical evidence forms in April 24 after debts defaulted.  We had the largest loan written off in June 24 this loan was for 24k! We are also hopeful after sending more information another loan for 17k has also been written off as this seems to have completely vanished from the credit reports after sending them the extra information they asked for and not heard from them in over a month. I will also say we haven’t payed a penny to these loans since Nov 2023 and nothing has happened apart from a few letters and phone calls.