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  • FIRST POST
    • stuart galley
    • By stuart galley 6th Jul 18, 4:07 PM
    • 1Posts
    • 0Thanks
    stuart galley
    husbands bankruptcy
    • #1
    • 6th Jul 18, 4:07 PM
    husbands bankruptcy 6th Jul 18 at 4:07 PM
    Hi , my husband has just gone bankrupt the official reciever wants various information from me including my house which i am the sole owner of, I bought the house and pay the morgage, what legal powers if any do they have over me
Page 1
  • National Debtline
    • #2
    • 6th Jul 18, 4:41 PM
    • #2
    • 6th Jul 18, 4:41 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • debt doctor
    • By debt doctor 8th Jul 18, 2:38 PM
    • 4,360 Posts
    • 6,026 Thanks
    debt doctor
    • #3
    • 8th Jul 18, 2:38 PM
    • #3
    • 8th Jul 18, 2:38 PM
    Hi,

    Whilst the above all needs to be said, I have NEVER seen the OR pursue an interest in a property that is in the sole ownership of the non bankrupt partner unless the bankrupts funds were used in the original purchase (a deposit for instance).

    None in my team have ever known this happen either, including one member who was a level 2 examiner in the Insolvency Service for 10 years prior to joining my team.

    DD
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
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