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mandy.ry
Starting Member
4 Posts |
 Posted - 18 January 2010 : 13:23:44
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| My Mum has been living with her boyfriend for 20 years. He is about to go bankrupt. The house is my Mums and in her name following divorce. He has never paid for any bills/mortgage payments or added any value to the house. He has asked her to do a equity release - which I told her not to. He is now saying that if he goes bankrupt they/authorities can come after her for some of his debt/or worse take the house off her.. (debt believed to be around £35k (if he's telling the truth). Also I am worried about if he's taken out any loans agains the house, can I find this out somewhere. Would you let me know if HER house is at risk in anyway if he goes bankrupt - thank you |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 January 2010 : 15:02:02
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Hi Mandy
welcome to the forum.
The correct answer should be NO.
has mums partner ever been placed onto the deeds of the proeprty ?
do they have joint bank accounts ?
If any of the debt is a secured loan against the property or your mum and partner have taken out a joint loan then yes they the financial institutions will look at chasing your mum for the debt.
as stated your mum and partner have been together for a long period of time, in a divorce proceedings they could be considered a cohabiting couple, and have both contributed to the running of the house.
get your mum to check equifax or experian on her self, it will highlight any loans or debts, think one of them also shows the property (not sure thou).
Dont know what status your mum and her boy friend are in the relationship (over, not over, could be over?)
encourage your mum and partner to make contact with one of the experts listed to the left, hopefully they (you) can all sit down and have a cuppa with the expert.
Debt is a worrying time for all parties involved, Bankruptcy is not always the only option and when one of the experts look at the FULL situation they may be able to offer other options.
I used Paul & Ken @ reviva they were Fab
good luck Regards Richard |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 January 2010 : 15:15:40
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| If the boyfriend has taken out any loans against the house your mum would have to sign for those loans, even if he had been placed as one of the legal owners, however without knowing your full situation as the property is in your mothers name, it is the duty of any trustee in bankruptcy to prove the boyfriend has any financial interest in the property not for her to prove otherwise, and from what you have said this will be may be difficult. |
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mandy.ry
Starting Member
4 Posts |
Posted - 18 January 2010 : 15:51:56
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Thank you for your answers, makes me feel slightly calmer. To answer some of the questions.. her partner is not on the Deeds and they dont have joint bank accounts - even though she has taken out a bank account in her name that he is the sole user of. His bank told him to take his business elsewhere.
They are still together co-habiting but as I mentioned before, he has no bills in his name and there is no mortgage on the property.
Thanks again for all you replies, it is much appreciated. Maybe a trip to the CAB is in order with her!!!
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 January 2010 : 16:18:20
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| The part "She has taken out a bank account in her name he is the sole user of is concerning as she not he will be responsible for any borrowing, overdraft, fees, etc. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 January 2010 : 16:23:19
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agree with daniel
looked straight forward till then
get the account closed, limit the loses but damage may already be done, he should be able to open a co-op cash minder
Richard |
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RHB
Senior Member
1159 Posts |
Posted - 18 January 2010 : 16:25:17
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| 20 years is a long time, has he not worked in all that time & never contributed towards a mortgage? When did mortgage payments finish? The way I read it is he could possibly have an interest in the property |
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mandy.ry
Starting Member
4 Posts |
Posted - 18 January 2010 : 16:27:51
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quote:
Originally posted by RHB
20 years is a long time, has he not worked in all that time & never contributed towards a mortgage? When did mortgage payments finish? The way I read it is he could possibly have an interest in the property
He does work but spends it like water.. he is only a driver for someone. There is no mortgage on the property it was bought outright with divorce settlement money.... but he has never paid any of the household bills, she has supported him almost all of the 20 years they've been together, sad I know but not a lot I can do.. all I can do is try and glean as muchb info as I can, and you are all very helpful
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 January 2010 : 16:35:37
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Hi RHB
yes in recent divorce of unmarried friend (yes had kids involved so may add weight). The value of the property was assessed when they initially got together and when they seperated.. equity was shared..
however without wanting to scare mandy< I have not heard many cases when the OR has been as aggressive as divorce proceedings.
watch the flood gates open with replies ......
Mandy
Mum (*and partner if poss) will need to come with you to CAB or expert, and take the lead or else partner and mum could ignite relationship with each other and you although well meaning,could be left out in cold.
good luck Richard |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 January 2010 : 16:55:48
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Hi Mandy
For a trustee in bankruptcy to have any automatic interest in your mums property, the property or a share of the property has to be vested in the bankrupt at the time of the bankruptcy. If there is none vested then the trustee has to then prove beneficial interest this is where I previously said to you it is for the trustee to prove interest and not your mum otherwise, Good Advice is a trip to the CAB, however I feel from the posts you may be more concerned that say she is at present. I guess you need to know how she stands to protect her interests. |
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mandy.ry
Starting Member
4 Posts |
Posted - 18 January 2010 : 17:52:54
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Thanks Guys, you've been a real help
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debtinfo
forum expert
2826 Posts |
Posted - 18 January 2010 : 22:20:21
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Hi Mandy, Bankruptcy works differently than Divorce.
In a Divorce a judge could just award part of the interest in the property if they have been living together for a long time. In bankruptcy on the otherhand a person has to actually contribute to the house to gain an interest, so your mother should be ok |
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RHB
Senior Member
1159 Posts |
Posted - 19 January 2010 : 07:24:23
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| I certainly wouldn't worry in that case, as the House obviously is solely hers. She wouldn't have put him on the deeds tHough & not told you? |
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My Mum has been living with her boyfriend
