Author Topic: Bankruptcy and partners home  (Read 10057 times)


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Bankruptcy and partners home
« on: Jun 10, 2014, 10:42:40 AM »
Hi all

Looking for some advice here. I will try to be as clear and concise as possible..

My business from which I was a sole trader collapsed a few years ago, leaving considerable debts to both the VAT and tax office, as well as quite a lot of unsecured debt on credit cards etc. At the time we lived in a house with a fair bit of equity, but due to a high mortgage and my ruined credit rating, there was no way of releasing any more money from the house. We had also fallen into several months mortgage arrears so an extension to the mortgage was out of the question.

Last may, we moved to a cheaper house, and went from a joint mortgage to a bridge loan in my wife's name only (she had always worked so was able to maintain a much better credit rating, and with no CCJs was our best shot of being placed. Although our borrowing had been reduced by 2/3rds, getting a mortgage is so much more difficult now! She is now on a proper mortgage (in her name only) and has a decent job. Things have stabilised.

This has nearly wrecked our once strong marraige and had a terrible effect on our 4 children. We have nearly split up, but have now sorted things out.

I would like to address my debts, but they are too big to pay off any time soon on my current earnings, and HMRC are threatening imminent court action. I would like to consider bankruptcy, but am worried about the house. There is equity there, but it is not in my name, and I am not on the deeds. My question is - will the creditors be able to access the equity?


Richard Stockburn

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Re: Bankruptcy and partners home
« Reply #1 on: Sep 01, 2014, 05:13:17 PM »
Hi Joseph

My name is Richard Stockburn and I work for as an insolvency specialist.

When you enter into bankruptcy, the Official Receiver investigates all properties owned or sold in the previous five years and the sale of the previous property will attract attention. Regardless of whether the finance is in your wife's name or not, the issue is how much of your 50% of the profit from the sale of the previous property, went into the new property.

This might sound unfair, but it is the OR's duty to investigate all avenues when it comes to assets, with a view to selling these to liquidate either part or all of the debt. Granted, it will not be easy for the OR to secure a sale of the property, but I would not be at all surprised if they pursued this with a view to placing a charge against the property.

Give me or Sean a call if you feel like a chat on 07894 481175 or 01425 600129 and we will talk you through it.