Author Topic: Bankruptcy and equity  (Read 3295 times)


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Bankruptcy and equity
« on: Dec 07, 2012, 05:54:17 PM »
Hi all,

Hopefully someone can help.  In the last two years, I have had my business fail and my marriage break up.  I have finally had to accept that I will become bankrupt, and I have a county court appointment in two weeks.

My problem is the house my, soon to be, exwife and I used to share.  We have put the divorce petition into the courts this week.  She lives in the house and I live in rented accomodation.  We have circa £60k equity in the house, and we are discussing the equity split.

When all is said and done, I do not care for myself at all, all I care about is the home that my two small children live in.  They are my absolute everything, and it pains me everyday that I don't live with them, but such is life.

I would like to do absolutely everything possible to prevent the sale of the house, as the house is their home.  My eldest is registered disabled, and I would be devastated if he lost his home  :-[

The equity is circa £60k at most.  We are talking about a split of more like 60/40 in my ex-wifes favour, I'm not being greedy and everything thus far is amicable.

My indebtedness is about £50k due to failed business etc.

How likely is it that they will try and force a house sale ?  If the equity is 'say' 60/40, then my share would be £24k before liquidation costs etc.

Any help greatly appreciated, like I say, it's just my two little boys that I care about.  I don't care if I have to live in my car !  As long as my boys have their home  :)

My county court appointment for bankruptcy is in two weeks.

Many thanks in advance.


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Re: Bankruptcy and equity
« Reply #1 on: Feb 25, 2013, 09:35:51 PM »
Not an easy situation especially with wife and children.

Sam T

James Falla

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Re: Bankruptcy and equity
« Reply #2 on: Jun 28, 2013, 01:17:43 PM »
Hello Plymstrings
I would be interested to hear how this situation played out for you. I would have to say that in my experience if you have a share of £60k of equity then the official receiver would want this to be released and they would force the sale of the property if there was no other way of doing this. Their argument would be that your wife would get her share of the equity and with that they could quite easily find a similar property in the same area to rent..... Not an ideal situation but unfortunately that is the harsh reality of bankruptcy if you are a homeowner with a share of significant equity.
Debt Expert & Author