Hi my girlfriend was declared bankrupt last tuesday.She owns a house with her previous partner which is in or close to negative equity and in arrears.He remains in the house.He is keen for his sister to adopt the mortgage on the house so he can remain in it.He is puttig pressure on my girlfriewnd to sign some papers.She has her meeting with receiver on the 26th of nov.She is unclear of procedures and timing relating to house.She doesnt want to sign anything which might get her into trouble.What should she do! Many thanks
She should be very careful about signing papers especially if she is not sure about them. The best option is to wait until she has had the interview with the OR and then decide what to do.
If the property is in negative equity the OR will not be interested in it. If there is equity then the OR will want your girlfriend's share (i.e. 50%) and this can either be paid for by the sale of the property or by paying the equity amount to the OR.
Signing over the property won't make any difference to the OR as the OR takes a look at any assets that the BR either sold in the last couple of years or had when they were declared BR.
It may be worth your girlfriend getting a lawyer or maybe the CAB to look over the forms that her previous partner wants her to sign. Are there any clauses about having to pay arrears, negative equity, etc.? This can all be included in the BR but your girlfriend needs to have put these on the SOA.
Bankruptcy and house
Posted - 15 November 2010 : 11:17:29
