New Post Advanced Search

Bankruptcy and selling a home

6 replies 421 views
I went bankrupt in 2012 and am now discharged. The house i had with my ex.partner is now being sold. Am i entitled to claim share of equity in this?  I havent resided or contributed to the mortgage since 2010. 

Replies

  • silvercarsilvercar Forumite, Board Guide
    41.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Was there any equity in it at the time of your bankrupty?
    Did the official receiver register their interest in (the equity) on the deeds within 3 years of your bankruptcy? Alternatively, did someone buy back the equity from the OR at the time? 
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to [email protected]. Any views are mine and not the official line of moneysavingexpert.com.
  • Hi no there was massive negative equity
    The house came back to me at the end of my bankruptcy. 
  • silvercarsilvercar Forumite, Board Guide
    41.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    If the house "came back to you" then I would think you are entitled to your share of the equity.
    Whether your ex could claim that he is entitled to all the equity depends on the agreement you drew up when you bought it/ how it is owned/ whether you both have an agreement on the sale proceeds etc.
    Given you haven't contributed in any way since 2010 and there was no equity at some point after 2012, there is also the moral argument.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to [email protected]. Any views are mine and not the official line of moneysavingexpert.com.
  • edited 16 June at 10:50AM
    MEM62MEM62 Forumite
    3.2K posts
    Seventh Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    edited 16 June at 10:50AM
    Hi no there was massive negative equity
    The house came back to me at the end of my bankruptcy. 
    No equity at the time of your BR.  No subsequent financial contribution made by you since.  Any claim you have will be weak to say the least and I cannot imagine that, under the circumstances, that your ex will be handing anything over without a fight.  Therefore, you will be looking at litigation - which is both risky and expensive.  In addition, if successful, you can expect all the mortgage and other payments for the upkeep that you have not contributed in the intervening years to be deducted from any settlement.    
  • RattyIrkRattyIrk Forumite
    66 posts
    10 Posts
    Without knowing full circumstances your ex may be prepared to give you something as a nuisance payment to ensure they can sell without difficulty.  If the house is in joint names they will need you to sign paperwork, failing which they will need to get a court order which they will want to avoid.  
  • jontyhjontyh Forumite
    4 posts
    Third Anniversary First Post
    I was made bankrupt in 2011 my wife purchased the beneficial interest less than 10k back from the OR with money given to us by my mother I up until the last 7 months have paid the mortgage now we are separated and selling the property my wife is adamant I am not entitled to half of the profit we were married 33 years of which she rarely worked anyone been through this or anyone know or can advise please 
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support