HOME  FORUM  MEDIA  EVENTS  ARTICLES  TV  BLOGS
•Home
Bankruptcy:
•Bankruptcy Information Center
•What is Bankruptcy?
•Is Bankruptcy right for me?

•How to declare Bankruptcy?
•What happens to my assets?
•Bankruptcy and credit rating

Forum:
•forum
•register
•search
•faq
•experts

Blogs:
•Bankruptcy News
•More...

Media Room:
•Press releases
•Media Coverage

Other:
•About BankruptcyHelp
•Links
•Contact us
•Debt Glossary
•Insolvency jobs


FORUM
  > Browse and post on our forum
Home   |   Profile   |   Register   |   Active Topics   |   Members   |   Search   |   FAQ

Welcome to our Forum, please register if you want to post
Ask a debt question
See the last 250 posts
Watch video on how to use forum
Username:
Password:

Save Password
Forgot your Password?

 All Forums
 New Questions
 Forum Questions
 Bankrupt's Beneficial Interest in Partner's Home
 New Topic  Reply to Topic
 Printer Friendly
Author Previous Topic Topic Next Topic  

harry
New Member

56 Posts

Posted - 21 September 2008 :  19:26:29  Show Profile  Reply with Quote
Bankrupt's beneficial Interest in Partner's House:
My daughter has been living with her boyfriend for 12 months (they are unmarried). He is about to go bankrupt (due to debts arising from loans for car purchases about which she and we knew nothing).
The house is in her sole name, and there is no mortgage on it.
It was bought outright as a cash purchase immediately before they moved into it.
He made no contribution to the purchase (in fact, it was purchased entirely with funds provided to my daughter by myself and my wife).
There have been no improvements, extensions etc, made to the property since they moved in (hence none to the funding of which he made any contribution).
All bills are in my daughter's sole name.
HOWEVER, he does give her £50 per week (which we think of as 'rent' since if he didn't live there he *would* be living in rented accommodation costing at least as much) towards general household expenses.
Since there is no mortgage there is substantial equity in the property (approx. £150,000).
(1) Couod the Official Receiver argue that our daughter's boyfriend has a beneficial interest in the property?
(2) Could our daughter therefore be forced to sell the house?
(3) Could it be counter-argued that WE have a beneficial interest in the property (since, in fact, we paid for it -- not anticipating this situation)?
(4) Is it advisable for my duaghter's boyfriend to move into rented accommodation BEFORE he goes bankrupt?

One thing I should add. My daughter's boyfriend does not have a bank account (he has had credit problems before) and so he has arranged that his wage is currently paid into my daughter's account. However, that is NOT his contribution to the household -- the money is taken out by him immediately it appears in her account and he then gives her just the £50 per week 'rent'.

tracy_b
Junior Member

United Kingdom
457 Posts

Posted - 21 September 2008 :  19:31:30  Show Profile  Reply with Quote
Hi Harry,
Welcome to the site. I dont have any advise for you except to say that one of the experts will answer you shortly. Keep posting and hopefully you'll get your answers soon.
Tracy
Go to Top of Page

BankruptC
Senior Member



1030 Posts

Posted - 21 September 2008 :  19:55:09  Show Profile  Reply with Quote
Hi harry and welcome from me also!

Unfortunately I don't have the technical knowledge to answer your question either, but I didn't want to 'read and run'.

Hang on in there and someone who can help will come along soon.

Take care.

C. x
Go to Top of Page

Reviva UK
Advanced Member

United Kingdom
2452 Posts

Posted - 21 September 2008 :  20:06:27  Show Profile  Reply with Quote
Hi Harry and welcome to the forum

as I read it :

The house is a gift from you to your daughter.
It is unmortgaged.
He has made no contributions to either the purchase or significant contributions towards being there.
Your daughter's boyfriend happens to live with her.
He makes a VERY MODEST contribution towards some utilities and towards food.

I do not believe that in any civil case there is a position that your daughters boyfriend has any claim whatsoever upon the house, either in insolvency or if theyr were to split up.

I suggest that for ease of explanation your daughter gets an assured shorthold tennancy agreement and gets the boyfriend to sign it.

These can be purchased from WH Smith or drop me an email & I can forward a blank one to you.

It would just make it clear that he is a tenant rather than a prospective long term owner.

hope this helps

Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com
Go to Top of Page

harry
New Member

56 Posts

Posted - 21 September 2008 :  21:25:59  Show Profile  Reply with Quote
Thanks Paul.

I will email you.

Harry
Go to Top of Page
  Previous Topic Topic Next Topic  

 New Topic  Reply to Topic
 Printer Friendly
Jump To:
bankruptcyhelp.org.uk Forum © bankruptcyhelp Go To Top Of Page
Powered By: Snitz Forums 2000 Version 3.4.06