Author Topic: ex partner of someone planning to go bankrupt but I can't find any advice for me  (Read 1388 times)

Katee

  • Guest
Hi,
My ex and I will soon be filing for divorce and he is also planning on declaring himself bankrupt shortly.  I live in the house with our two children - the main mortgage is in his name only and there is a smaller joint secured loan on the property.  The property has negative equity and I have been making the mortgage payments and the secured loan payments on my own since he left 2.5 years ago.  I am now really stuggling to maintain both these payments (approx £700 per month) but they are both court ordered payments so I am worried about being left homeless if I don't maintain them. 
I realise that I will become liable for the joint loan once he declares bankrupcy however since the house is in negative equity and the mortgage company will not transfer the mortgage to me due to wages do I have to maintain the payments for both the mortgage and the secured loan whilst the bankrupcy is sorted out?
I have looked everywhere I can think of for advice but I can only find stuff relating to the person going bankrupt.  Please help!!
Thanks

James Falla

  • Hero Member
  • *****
  • Posts: 655
Hi Katee
The first thing to say is that only unsecured debts can be included in a bankruptcy. As such both the Mortgage and the loan secured against your house will not be included and you will both still remain liable for them even after your ex declares himself bankrupt. The payments to both of these loans will have to continue to be made. If they are not as you are aware, either the mortgage company or the loan company can take steps to repossess the house.
You also need to be aware that if your ex goes bankrupt, his beneficial interest in the property will transfer to the official receiver. If the house is in negative equity then there is no risk that the property will be force sold because there would be no financail gain by doing so. However this is an opportunity for you to buy the beneficial interest in the property from the OR (it would cost c£500). If you do not do this then the OR can keep hold of his beneficial interest for up to three years. If during that time the house does go up in value then the OR could put a charge against 50% (your ex's share) of any equity at that time.
Debt Expert & Author
beatmydebt.com