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maxpower
Starting Member
22 Posts |
 Posted - 13 March 2011 : 17:20:38
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Thank you debtinfo for letting me know about this. I have now read into it further and would like to know how I list this on my bankruptcy forms.
These seems to be a very complicated question, so if anyone can help or point me in the right direction that would be great.
Essentially my partner and I put a deposit down for a flat of £15000 (50/50). Within 2 years my partner paid another 20,000 on the mortgage but I didn't. Then when my financial troubles starting getting really bad, instead of him using another £40K of his money to pay off his half of the mortgage he loaned it to me and I took on responsibility of paying the mortgage.
The mortgage is interest only with over payments available. All I have done for 2 years is pay the interest. I have made no further progress. (Plus I still owe him the £40K)
The mortgage is in his name only, I am not on the deeds or listed anywhere in documentation. Although there would seem to be £35K of equity, the flat above ours just sold for £70K after being listed for almost 3 years (about half of what we paid 4 years ago)
I am wondering it the £40K would be seen as him buying my beneficial interest so I could pay my debts??
And, how do I list this info in the section about property?
Thank you again..
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debtinfo
forum expert
2826 Posts |
Posted - 13 March 2011 : 17:52:01
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| that situation is complicated, to much so for the forms really, I would not put it down directly that you own any property, and simply put a note in section 13 that you may have an interest but are not sure. You can then discuss it fully with the OR at the interview |
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RHB
Senior Member
1159 Posts |
Posted - 13 March 2011 : 18:07:41
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| I think the OR would want to know why you aren't on the deeds but are paying all the mortgage. |
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maxpower
Starting Member
22 Posts |
Posted - 13 March 2011 : 18:18:08
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thank you again debtinfo - I was leaning towards that myself.. I suspect that they have 'heard it all' in some respect, and being able to clearly state the information I think is better then trying to make it fit the forms.
RHB - yes I suspect so... part of the story is that my partner lost his job recently too, so I am taking on sole responsibility of everything as I am working (and owe him so much money)..
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maxpower
Starting Member
22 Posts |
Posted - 13 March 2011 : 18:19:49
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Sorry - another quick question.
I can't seem to see a clear indication of how beneficial interest works.. Do they have the power to force my partner to sell the flat to get any interest I have out of it?? Even if it is only a few thousand pounds?
Thank you again. |
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debtinfo
forum expert
2826 Posts |
Posted - 13 March 2011 : 18:32:36
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| ok, that is a long way down the road yet, but IF it was deemed that you had an interest in the property they would first give someone like you or your partner the opportunity to buy them out first. If you cant or wont then they will need to go to court and prove that you have an interestm if the court agrees then they can ask for an order of sale |
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maxpower
Starting Member
22 Posts |
Posted - 13 March 2011 : 19:03:57
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Oh, okay... Its not a power they have then to make some sort of decision about it. It would have to go through a hearing... Phew... I was getting very nervous. My partner is the one who has finally convinced bankruptcy is the right thing to do and I didn't want to then find I was putting HIM in a worst situation..
Thank you so much for the insight and help.
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 13 March 2011 : 23:19:49
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Hi Maxpower,
as Debtinfo said if it can be deemed you have an interest in the property, then it could be treated as if you were a joint owner.
Regarding this, there is much case law surrounding this topic(mainly in divorce/family courts), but it could equally be applied to bankruptcy.
The latest is Oxley v Hiscock in 2004, with one extract in particular:
Oxley v Hiscock changes
nothing: ª¼ the first question is whether there is
evidence from which to infer a common intention,
communicated by each to the other, that each
shall have a beneficial share in the propertyº
The common intention in this, is that you both put in a total of £15,000 as a deposit(50/50) that would be enough to infer a common intention, and crucially a constructive trust that basically, you would be entitled to an element of the BI, even though it may not have been put in writing.
It is enough for an IP to take an interest as the OR would not be able to, but the question is would an IP think that the work involved would justify your share of £35k.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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maxpower
Starting Member
22 Posts |
Posted - 14 March 2011 : 14:09:33
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Thank you for the further info Big Al. I will keep reading just to make sure I am fully prepared whichever way it goes.
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question about beneficial interest
