husbands bankruptcy

Hi stuart and welcome to MSE,


It would seem the Official Receiver (OR) is looking to assess your husband's beneficial interest in your property. This is quite a complicated situation, because although I appreciate he is not named on anything, there is a risk he has accrued a money interest in your property, which is known as beneficial interest.


If he is deemed to have an interest, then that is deemed as an asset, and depending on its value it can potentially put the property at risk. Beneficial interest is subjective and takes into consideration what he may have contributed to the house over the years either towards bills or home improvements. It can also take into consideration whether or not he contributed to the household deposit, his intention to stay in the property (and accrue more interest), whether you can afford it alone etc. I am afraid this is not an exact calculation and so it will be hard for anyone to say categorically if he has an interest or not, but just because it is being investigated doesn't mean he will definitely have any.


If he is believed to have an interest in your home then the OR may want to realise this interest as an asset as part of the bankruptcy process. The OR has several ways that he can do this and (in a worse case scenario) if his interest is high enough, the OR may consider selling the property. To prevent this someone could pay the equivalent amount of this interest to the OR, to buy back his share.


Laura
@natdebtline