Author Topic: HUSBAND GONE BANKRUPT AND I AM SHOULDERING THE DEBTS AND THE HOUSE  (Read 1617 times)

dmworz

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My husband went bankrupt in June last year whilst I have been in the house for two and half years post separation, paying the mortgage. His share of the mortgage is in the hands of the Official Receivers and mine belongs to me the building society will not release my husband from the mortgage. I am in a position at the moment where the official receivers are waiting three years to decide whether to put a charge on the property or sell his interest to a family member or if the house stays in negative equity then it will revert back to him. The official receivers go back five years so they also want half of the car which was valued at 5,000 three years ago so they are asking for 2,500 and the car is now only worth 2,000 due to de valuation over time.The only issue that I have found with this is that because the mortgage is joint and several he is still liable for the mortgage but should the property be repossessed then because the property is part of his debt then they will not chase him but will solely chase me for any shortfall if that were to happen. I have been left with a lot of problems and am not back into work yet. I can not see a way forward as if i now choose to go bankrupt then i could finish with a charge on my share of the equity and his could revert back to me as by the time my three years have arrived then the property will have equity.  Basically I could finish paying the mortgage in a house in joint names and in years to come when the house is sold then after paying back the mortgage company my husband could have equity and I could have none as mine will have a charge. Any suggestions. by the way the home is the family home and i have three children.

James Falla

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Re: HUSBAND GONE BANKRUPT AND I AM SHOULDERING THE DEBTS AND THE HOUSE
« Reply #1 on: Feb 21, 2014, 10:19:28 AM »
Hi dmworz

You mentioned that you think your home is in negative equity now. How much do you think this is and what is the likelihood that the price will rise enough to create equity in the next 3 years? I you think there is little chance of this then going bankrupt yourself might be a sensible option. However if you think the equity is likely to rise you could make an offer to your husband's official receiver to buy his interest in the property. This will cost £1000 but then other than having his name still on the mortgage you husband no longer legally has any interest and all subsequent equity would be yours.

Just another quick point about the car. The value that the OR places on the car will always be its value today not 3 years ago. As such if the value today is £2000 then you can pay £1000 to the OR and keep the car. If the car is only worth £2000 paying £2500 to the OR would be crazy. It would be better to simply sell the car and give the OR half the proceeds. The OR knows and I am sure that they are mistaken about the car's value perhaps based on the information your husband has given them.
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