repossesion if girlfriend declares bankruptcy

james3333

is all this still relevant coz my ex doesnt have any credit issues or debts..so rthe likleyhood she will go bankrupt is minimal

VFR-Rider

james3333 wrote: »

is all this still relevant coz(sic) my ex doesnt(sic) have any credit issues or debts..so rthe likleyhood she will go bankrupt is minimal

So..... why ask the question:

james3333 wrote:

repossesion if girlfriend declares bankruptcy

I think as people have said, if her equity is much higher than the 10k you have given her (the advice was unanimous on declaring this), then there is the possibility that someone could come looking for their share.

The options are really to pay her the correct market share (difficult in these times!) or don't. However if you choose the latter you need to be aware of the 2 factors of the gamble:
1) You ex will not go bankrupt
2) People will not come after her share of the equity in the house

But if you're sure she won't declare bankruptcy the whole point is moot.

As an aside, anyone able to tell me if the OR comes after a property in this case... would they base the equity on the current market value or that of when the party was released from the mortgage?

Rikki

An indemneity policy would certainly give you peace of mind. I would seriously look into it.

CB1979_2

jesus christ cloak & dagger or what!

what are you hoping to gain by not telling the solicitor and keeping it all above board?

james3333

all we want is her name off the deeds and she is more than happy with the 10k
cant she sign somthing to say she/courts will not come looking in the future for anything else?

rikki : whats this indemnity policy?

dmg24

james3333 wrote: »

is all this still relevant coz my ex doesnt have any credit issues or debts..so rthe likleyhood she will go bankrupt is minimal

I know several others have already commented on this, but you have not answered:

If your ex does not have any debt, why might she be declared bankrupt?

Rikki

dmg24 wrote: »

I know several others have already commented on this, but you have not answered:

If your ex does not have any debt, why might she be declared bankrupt?

Its just something you are made aware of during a divorce. Especially if you shared a mortgage.

Its to stop people transfering a house to their OH to avoid paying debt or future debt. They can still make a claim for up to five years after the property transfer if there is no indemniety policy.

james3333

So If I Got An Indemnity Policy And The Ex Signed To Say She Has Nothing More To Do With The House, It Can Get Rid Of This 5 Years Courts/legal Thing?

dmg24 wrote: »

I know several others have already commented on this, but you have not answered:

If your ex does not have any debt, why might she be declared bankrupt?

just because 5 years is a long time and i simply dont want her to have any sort of hold over me or the house IF she does go bankrupt!

Rikki

james3333 wrote: »

all we want is her name off the deeds and she is more than happy with the 10k
cant she sign somthing to say she/courts will not come looking in the future for anything else?

rikki : whats this indemnity policy?

Its a document drawn up by solicitor taking away all responsibility or claim from one of the people on the mortgage. Used when a mortgage company wont release one of the people and when the property is newly signed over where there is fear of money problems in the next five years.

example:
1) If my ex went bankrupt and his name was still on the mortgage and deeds to the house. The debtor could force the sale of my home to pay his debts.
2) If I got into trouble over the mortgage they could go to him for the money.

You have to go the the building society or bank to remove your ex partners name. They will only do this if you earn enough to take over the mortgage.

This is why your solicitor has made you aware of it.

VFR-Rider

okay... let's break it down then (apologies for assumptions!):

James3333 wrote:

i just recieved a letter from my solicitor that if my girlfriend declares herself bankrupt in the next 5 years, the courts could take £30,000 off me or reposses the house!!!

So we're assuming currently the house has 60k equity (if not, where did this figure come from?)

James3333 wrote:

cant she sign somthing to say she/courts will not come looking in the future for anything else?

No. As legally she has 30k worth of assets, that her creditors might of course have an interest in.

The reason for this is of course to stop people "hiding" assets. I think people here are also still unsure as to why you have not disclosed the 10k.... from an outside perspective it does look like this asset (the house) is trying to be taken out of the picture very quietly...(I apologised for assumptions already )

All of this is my take an should be treated purely as an opinion and since you have already instructed a solicitor the best place to go for advice would be them :money: