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My friend just spoke to a StepChange counsellor about my debts.
They recommend bankruptcy for him and that his wife's property which is owned by her and mortgage solely in her name would not be affected by my going bankrupt.
I thought that as they are married that her assets would also be affected?
Can you shed any light?
Thanks
Originally posted by c00k1e316
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Hello,
I've got a little bit confused with who's going bankrupt but I'll answer in general terms to keep it simple.
If a husband goes bankrupt then the courts will not be interested in assets they see as purely being in the wife's name. They will obviously look into the husband's assets though, including any properties they think he's got an interest in.
The Official Receiver (the person appointed to look into this sort of stuff) will look to see if they think the husband has any "beneficial interest" in the property he lives in. Even if he isn't named on the property, if he's contributed to the buying of the house the courts will look into this.
I can only assume that the advisor who said the house was unlikely to be affected will have looked at the circumstances and been confident that the Official Receiver would not see any issues with beneficial interest.
Your friend/you could always give us a call on the number in their/your advice booklet if you'd like to be sure though.
Kind regards
James