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| baguaboy |
Posted - 24 October 2009 : 17:24:57
Hi..I have been living with my partner for over 11 years...we are not married... the house and mortgage is in her name only. I have been the main earner during this period (probably about a 3;1 earnings ratio). I have ammassed susbtantial unsecured credit card debts and am considering bankruptcy (my only other asset of worth is my personal pension). I understand that if declared bankrupt the OR would demand payment of beneficial interest from my partner even though the property is solely hers.( the property was bought for £150 K ..with £100k mortgage and £50k of her savings...she has added another £70 k of mortgage to the property...so total mortgage is now £170 ...inteterst only, no capital having been repaid...house is now valued at £340 K)
Qusetions;
1) is it absoultely inevitable she will be hit for my beneficial interest or is it sometimes overlooked..
2) roughly does the OR calculate it as equity appreciation proportioned out by our relative earnings over the period
3) is there any legal loop hole out of this
4)If I we were to seperate and I moved out to another adddress , how many years would I need before the OR deconsidered my previous addrress and associated beneficial interest
Hope you can assist
Many many thanks
Martyn |
| 5 L A T E S T R E P L I E S (Newest First) |
| RHB |
Posted - 24 October 2009 : 19:13:49
Personally I would be careful about telling lies, white or oterwise when declaring bankruptcy.If it wasn't a loan then you can't say in retrospect it was. If it was a loan then you just include her as a creditor, it doesn't mean that 70,000 will get added to her proportion of the equity necessarily.
Is there any other way you can adress your debt problems? |
| debtinfo |
Posted - 24 October 2009 : 19:10:19
They start with what actual equity is there at the moment and adjust it for the transactions that have been made. If you can show that you have been "repaid" some of the BI that had appreciated then that works in you favour.
a common example is where a husband goes bankrupt with a jointly owned property with say £50,000 equity. The wife can prove that say 1 year ago the husband secured a £50,000 loan against the property which he used solely for investing into his business. The wife successfully argues that he has had his share of of the equity and she owns the whole of the remaining part.
At the moment your partner holds the whole legal title and so it is down to the OR to prove you have an interest not the other way round |
| baguaboy |
Posted - 24 October 2009 : 18:46:04
Hi..thanks for the real quick reply. Just a couple more queries...last year my parner remortgaged freeing up £70 k of equity...taking the mortgage from £109 to 179...is this irrelevant to the BI calculation? ie is the calculation solely based on the appreciation in the house price over the period I lived there? Also some of that £70k she paid into my bank a/c and I subsequently lost in some ill advised investments...these are documented and I have claimed cap. loss relief on my tax return this year.....can I claim this money was a loan from her and therefore have it offset against my BI ?
Cheers again for all your kind help |
| baguaboy |
Posted - 24 October 2009 : 18:24:22
quote:
Originally posted by debtinfo
1) That would be a decision for a judge, the OR is very likely to look closely at the arrangement as you have clearly accrued some interest in the property.
2)yep, given the fact that you started £50,000 down she will probably still have the greater part of the interest.
3)No, the best you could hope for is to argue the BI down as much as possible, sometimes you cab come to an arrangement without going to court avoiding costs and so arhue that this saves the OR money and so buy it back for less.
4) usually 5 years
4)
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| debtinfo |
Posted - 24 October 2009 : 18:20:38
1) That would be a decision for a judge, the OR is very likely to look closely at the arrangement as you have clearly accrued some interest in the property.
2)yep, given the fact that you started £50,000 down she will probably still have the greater part of the interest.
3)No, the best you could hope for is to argue the BI down as much as possible, sometimes you cab come to an arrangement without going to court avoiding costs and so arhue that this saves the OR money and so buy it back for less.
4) usually 5 years
4) |
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