Author Topic: What affect will Fianca bankrupcy have on myself???  (Read 1044 times)

Trembler

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What affect will Fianca bankrupcy have on myself???
« on: Feb 19, 2011, 06:11:06 AM »
Hi
New to all this, but need some answers please - My fianca has moved into my house (8 months ago) leaving her house and renting it out and I have found out that she has massive debts.
 
 She owns nothing in my house and contributes no moneys to the running or upkeep of the house.
 She is trying to deal with the debt but it is not possibe to make any real dint in the amount owed.
 Her house is in negative equity so if she sold it the situation would be worse
 The rental moneys she gets does not cover her mortgage
 She is concidering bankrupcy.
 
 
Q What effect will this have on my personal circumstances?
Q As all her debts are hers and were run up prior to meeting me ,am I excempt from any claims on my personal wealth and income if she were to declare bankrupcy?
Q Would she still be able to live with me during the bankrupcy period?
 
Hope someone can assist in the Q's above.
 
Many thanks
 
 

shocksoc335

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Re: What affect will Fianca bankrupcy have on myself???
« Reply #1 on: Feb 23, 2011, 08:00:30 AM »
Hi Trembler,

Assuming you don't have a joint financial link ( joint credit card, loans etc ) then the liability for her debt remains with her. This means it should not impact on you financially in any way or impact for instance your credit reference file.  :D

When she petitions for her bankruptcy the OR will want to see a joint household income and expenditure for the property you are living in now, basically to see what she is paying towards each month. Your funds will be noted but not taken.

Its likely the Official Receiver will vest an interest in her property, which means they will take over dealing and have 3 years in total to decide how to dispose of it. So yes she can live with you there shouldn't be an issue!

Kind Regards
Shocksoc335
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James Falla

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Re: What affect will Fianca bankrupcy have on myself???
« Reply #2 on: Feb 23, 2011, 01:16:10 PM »
Hi Trembler
 
Shocksoc is quite right, you are not liable for any of your partner's debts and would not have to put any of your disposable income towards their payment.
 
Given that her property is in negative equity and the rent she gets for it is not covering her mortgage, the property is simply a liability which is making her situation worse by the month. As such, one solution she might like to consider is to hand back the keys to the mortgage lender and allow her property to be voluntarily repossessed. She could then declare bankruptcy which would wipe out her outstanding debt. Any potential shortfall in the mortgage ofter the house is sold will become an unsecured debt which would be included in the bankruptcy.
 
In that way after the bankruptcy process is completed, she will knwo that she is totally debt free and can move on with her life.
Debt Expert & Author
beatmydebt.com

Trembler

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Re: What affect will Fianca bankrupcy have on myself???
« Reply #3 on: Feb 24, 2011, 05:55:42 AM »
Thanks chaps
 
 There appears to be some light in the tunnel (and its not a train!).
 
 Ref Bankrupcy - whats the best way of doing this and what would the steps be?
 
 
Many thanks

James Falla

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Re: What affect will Fianca bankrupcy have on myself???
« Reply #4 on: Feb 25, 2011, 04:33:30 PM »
Hi Trembler
 
The process of declaring bankruptcy is fairly straight forward. However, given that your partner has a property to be dealt with, I would strongly advise that you discuss everything with an expert debt advisor first of all so that you really understand everything involved and what will happen.
Debt Expert & Author
beatmydebt.com