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rebecca.13
Starting Member
4 Posts |
 Posted - 01 May 2010 : 22:35:33
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| I own a property with my ex partner. I moved out approx 6 months after we bought the house and stopped paying the mortgage then. I owe my ex £10,000 as he paid off one of my credit cards and I am still in debt to him now. The agreement is that I pay £200pcm however I cant afford this as my employers recently gave me a massive pay cut and now my ex is putting an interest charge on each payment i make so effectively i am getting into more debt but trying to pay it off at the same time. as we own the house together, if i were to declare bankcrupcy, would this mean that the debt would be dissolved into the house and my ex could just keep the house and i would be free from the debt to him? would it be the same as him simply buying me out of the house? |
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RHB
Senior Member
1159 Posts |
Posted - 02 May 2010 : 08:24:50
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Is there equity in the house?
You would be free from any debts when you declare bankruptcy but it is unlikely your ex partner would get all the money you owe him back as the other creditors would get their share & of course the OR his fees.
How much do you owe in total? If the main debt is to your ex partner could you not give him a larger percentage of equity (assuming there is some)or if there is none just take your name off the mortgage & deeds & let him have the house? |
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rebecca.13
Starting Member
4 Posts |
Posted - 02 May 2010 : 09:01:49
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Hi RHB. Currently the house is valued at less than we bought it. I didnt put any money into the house (deposit etc) so i am owed nothing from the property itself. i am more than happy for my ex to keep the house and remove my name from the mortgage (for which he says there is a fee - do you know how much this might be?) but the issue is that he is still persuing the debt to him which is around £10,000 (just under). i only owe one credit card company in addition, about £3500. so there are only 2 creditors - him and the credit card people. do i need to declare bankcrupty in order to be free of the £10k debt or can my ex theoretically just 'wipe the slate' by agreeing to keep the house and swallow the £10k that i owe him?? i am more than happy to break all ties with him and house but can only do that by paying this £10k off and having my name taken off the mortgage. at this rate i will be paying it off for years and years and accruing interest the whole time. i have just had a baby with my new partner, we need the money and are really struggling as she was made redundant last year. i feel like bankcruptcy may be my only option??
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debtinfo
forum expert
2826 Posts |
Posted - 02 May 2010 : 09:30:52
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| If you went bankrupt the debt would be wiped completey, not incorporated into the house. Your haf of the house would be offered back to you or to him, and if in negative equity this would be for £1 plus £211 fees |
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rebecca.13
Starting Member
4 Posts |
Posted - 02 May 2010 : 10:37:18
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hi again so to remove my name from the mortgage will cost £212? what does this involve other than signing some paeprwork? and how quickly can this be done?
with regards the bankcrupcy, my monthly wages are approx £1300, i pay £425 rent, £400 bills (gas, water etc), we receive benefits for the remaining rent and then what i have left is to pay off my personal costs - mobile phone etc. i am already around £2500 overdrawn so the remainder of my salary aftet the above has been taken out of my wages goes straight into the overdraft in my attempt to pay this off. plus of course i pay £90 to my credit card and then £200 to my ex. although i have been paying £100 and then he charges £15 interest so effectively i am now only paying £85pcm.
based on all this would i even qualify for bankcrupcy?
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 02 May 2010 : 11:01:37
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Hi Rebecca
it sounds like you have 3 debts.
The ex partner for 10k
The bank overdraft for 2.5k
the 3.5k to the credit card
In bankruptcy these would all be written off.
You have said that the property is worth less than you paid for it but it is not clear if there is any equity - this really depends upon the value of the deposit put in when purchased. The official receiver could pursue your share of the house if you were set up as tenants in common when it was purchased.
It sounds like you need to set up a new bank account - coop cashminder is very good - and start having your salary and benefits paid into the new account. Then at least the money you have won't disappear as soon as you are paid.
If you petition for bankruptcy then your debts are written off and the Official Receiver will sort out the house. Your ex will be able to purchase your share ( negative equity or not ) back from the OR.
You would then be debt free and can start again.
Other things to think about~:
What do you do for a job
do you have a car and what is it worth
these may impact your decision
let us know and we can advise
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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RHB
Senior Member
1159 Posts |
Posted - 03 May 2010 : 08:57:29
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Personally I wouldn't rush to bankrupt myself in your situation. Bankruptcy will be a serious black on your credit file & you may wish to purchase a house with your new partner in the future. Just pay your ex back what you CAN afford, any court would see that as reasonable if he were to pursue you & petition for your bankruptcy.
I think it best if you say, write off my debt & I'll come off the house deeds because house prices will rise in the future & there will most likely be some equity to share. It should only cost a couple of hundred pounds to do & your ex would need to initiate it with the mortgage company. |
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rebecca.13
Starting Member
4 Posts |
Posted - 03 May 2010 : 11:11:35
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Thanks RHB,what could i do if my ex refuses to write the debt off and remove me from the mortgage? if he wants me all paid up? can i force this myslef or does it need to come from him?
and in the circumstances of bankcrupcy,who actually pays all the creditors off and how does this get re-paid? would i have to pay it back at a later stage?
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RHB
Senior Member
1159 Posts |
Posted - 03 May 2010 : 19:00:07
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Have you a loan agreement written down on paper? If not, there isn't a lot your partner can do & declaring you bankrupt will cost him thousands.
I think you need to be strong, speak to him & explain that you are struggling & ask him to either accept a smaller monthly payment or for you to sign the house over to him & completely free yourselves financially. In his position I know which I'd do. |
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I own a property with my ex partner.
