Husband bankrupt and Trustee wants to sell our house??!!!??

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  • BeccaGee
    BeccaGee Posts: 27 Forumite
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    Do we have to pay back the whole bankruptcy debt or just a maximum of £100000?
  • System
    System Posts: 178,094 Community Admin
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    edited 9 July 2018 at 1:46AM
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    BeccaGee wrote: »
    £100000 would not buy the same sort of house though. The OR will have to accept some sort of payment plan. We could probably afford £500 per month?

    The OR doesn't have to accept anything. The OR will tell your husband what he's going to do. It doesn't matter what YOU think you could afford per month, your husband will fill out a statement of affairs and the OR will decide what he thinks your husband can have per month and there will be an IPA for the rest of his income above that. Things like holidays, cars over £1000, £50 haircuts, £100 pairs of shoes are a thing of the past for the next few years for your husband.
    Do we have to pay back the whole bankruptcy debt or just a maximum of £100000?
    If the OR can get the money via sales of assets and a 3 year IPA order, the whole bankruptcy debt, if not then as much as he possibly can. His job is to get as much money as possible to repay the people your husband owed money to.
  • BeccaGee
    BeccaGee Posts: 27 Forumite
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    Up early as I’m not really sleeping very well at the moment with the worry!

    My husband hasn’t had to pay anything to his bankruptcy for the past three years so I can’t now have my house sold because of it!

    First job of the morning is to call the trustee and the or and explain the situation and offer a payment arrangement. I will start my offer at £250 per month knowing that I can raise it gradually to £500 as needed.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 9 July 2018 at 7:12AM
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    BeccaGee wrote: »
    Well then who will buy me a house?

    Why on earth do you think someone should buy you a house? Who will buy a house for the people who lost money because your husband didn't pay them?

    Your husbands bankruptcy will ultimately cost you his portion of the house which in practice means the house goes and you are left with your share of it but his share goes to settle as much as possible.


    BeccaGee wrote: »
    Do we have to pay back the whole bankruptcy debt or just a maximum of £100000?


    Your husband has to pay back what he can from his assets, which in this case seems to be around £100k. Then it's wiped, which is what bankruptcy means. If he owed £50k, then he'd be left with £50k. If he owed £250k, then £150k will be wiped out.
  • BeccaGee
    BeccaGee Posts: 27 Forumite
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    But I can explain that I do not work and so I cannot get a mortgage on my own and my husband probably couldn!!!8217;t now he is bankrupt!
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 9 July 2018 at 7:27AM
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    BeccaGee wrote: »
    But I can explain that I do not work and so I cannot get a mortgage on my own and my husband probably couldn't now he is bankrupt!


    Why do you seem to think you have a right to own a house? Plenty of people cant afford one. You now appear to be in that group, sorry.


    P.s. I got to say this, you've had three years to look into the consequences of bankruptcy and what it means for home ownership yet you appear to have done nothing about understanding them. Read this

    https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy-2/is-bankruptcy-right-for-you/will-you-lose-your-home-bankruptcy/
  • fatbelly
    fatbelly Posts: 20,496 Forumite
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    BeccaGee wrote: »
    Do we have to pay back the whole bankruptcy debt or just a maximum of £100000?

    I'm sorry if the tone here appears un-sympathetic. We do understand what is happening. If you had asked us 3 years ago what the chain of events would be, we would have set out exactly what is happening now.

    I'm sorry that I'm giving an even more negative answer to that question than the previous poster. It is the trustee's duty to find funds to cover the whole of the bankruptcy debt plus his own fees. Where a house sale is concerned these can be substantial - possibly £30k.

    He cannot have your beneficial interest in the property
  • iammumtoone
    iammumtoone Posts: 6,377 Forumite
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    Did you/your husband get any advise before going bankrupt?

    I don't know anything about the process but do find it slightly unbelievable that you thought you could write off debts whilst keeping hold of £100K worth of assets!

    I appreciate that you are not bankrupt but as others have advised above they are not taking your money just your husbands share.

    You will need to rent, expect in a few circumstances there are not many bankrupts who own their own home.
  • BeccaGee
    BeccaGee Posts: 27 Forumite
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    I live in the south east
  • warby68
    warby68 Posts: 3,021 Forumite
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    OP, its not about how much you can afford monthly - its about your husband's assets. He isn't allowed to go bankrupt and keep his share of £200k house equity. You don't lose your share but you can't hang onto his share. Bankruptcy is a process where assets are collected in over a certain timeframe for the benefit of creditors. You seem to be seeing it as some sort of Debt Management Plan where you can pay from income over an extended period.

    Did you really not know any of this before now? It is rather unbelievable that your husband didn't.

    £100k is still a very good start and that really is what's happening - you are starting again, because of the bankruptcy. Is there a reason you can't work and improve your finances further?
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