Author Topic: My partner is thinking of going bankrupt but he lives with me in MY house,advice  (Read 18833 times)

debs2807

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Hi,

I'm after a little advice please. My partner has a shortfall debt of £40k from a previous mortgage held with previous partner. He's in the process of moving in with me into in my own home which I soley own. He's thinking bankruptcy is his only option as he will never be able to afford to pay this debt off. I'm concerned what information they will require on application of bankruptcy, will they require information regarding my house or any details from me? Or just his monthly outgoings?

I'd appreciate if someone would reply as any advice would be helpful.

Thanks

Lisa Thomas

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Hi 


The property is in your name and always has been so there should be no issue with that unless the Official Receiver/Trustee can argue that your partner has a beneficial interest in the property.


This would come about if has has materially contributed to the mortgage, any capital improvements or the deposit etc.


If this does not apply then there should be no problem.


They will review his income to see what surplus he has after allow for expenditure to suit his reasonable domestic needs, however in arriving at this figure they might take into consideration your income.  You do not have to provide this but if you don't they will assume the expenses are split 50:50.


If he has a surplus available he might have to pay it into the Bankruptcy pot for 3 years, but this will only apply if he can afford it, in which case it shouldn't really matter.


Before he applies he should ensure Bankruptcy is the right option for him in the circumstances.
www.Nevilleco.co.uk 01752 786800

debs2807

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Everything regarding my house will be staying in my name. My partner will be setting up a direct debit and paying me £x per month towards bills and mortgage. All items in the house are mine also.
We've drafted a budget for his monthly outgoings including what he will be paying to me and any misc costs he has. He does have a surplus amount of cash left so we are aware they may require money from him for 3 years. I have never been informed they may take into account my income as we have no joint bank accounts or any other connection. Do you know how much of the surplus cash they would require?

Lisa Thomas

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They don't take the joint income into account for you to pay money over but simply to understand what share of the joint household bills your partner is responsible for and therefore to work out his surplus.


i.e if he was earning the bulk of income then he would be paying the Lion's share of the expenditure.  But if they don't know what your income is they will assume the split is 50:50 so it could skew the figures and he could find himself having to pay over a higher contribution that he can afford.


They might not consider this and just ask for his income and his share of the expenditure and not be interested in your figures.



www.Nevilleco.co.uk 01752 786800