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Nick2009
Starting Member
9 Posts |
 Posted - 09 April 2009 : 23:52:30
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Going bankrupt when living with parents. Beneficial Interest???
A bit of a lengthy question/request...
I owe around £38500, all unsecured, between 3 creditors, on 3 credit cards and a personal loan. I live with my mum, who is disabled and getting benefits. My mum owns the house outright, there is no morgage. I have just signed-on to get Job Seekers Allowance.
I had decided bankruptcy was the best option, and rang the National Debtline last week, but a giant snag appeared.
Apparently the official receiver might decide I have a "Beneficial Interest" in my mum's house. I have given her a contribution to utility bills (on an informal basis), but not repairs to the actual house. And as I said there has been no morgage to contribute to. The guy I was speaking too at the National Debtline couldn't say how much this B.I. might be and suggested I ring my local insolvency office (Leeds, I think) and ask them as different official receivers have different rules and ways of working these things out.
So I rang the Leeds insolvency office, who promptly said they wouldn't talk to me if I wasn't actually bankrupt yet, and to ring the Insolvency Enquiry Line instead. This I did, and the man I spoke to there said he couldn't tell me how much the B.I. might be either, and basically I'd just have to go bankrupt and see!
So now I'm in this horrible position, if I go bankrupt my mum could be faced with losing her house, or having to sell it and give a proportion to the offial receiver. Due to the nature of her illness the stress would be catastrophic, she's already suffering just because of my debt.
I can't start the the bankruptcy process without knowing the effect on my mum.
I need to somehow find out how much this Beneficial Interest is going to be.
I need help please!
Nick.
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John
New Member
United Kingdom
73 Posts |
Posted - 10 April 2009 : 01:55:35
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Hi Nick
have you always lived in Mum's property, if not when did you move in?
And for how long has Mum owned the property outright?
As far as I am aware if you moved back in when Mum already owned the house outright then you should not have an interest.
Have you paid utilities directly from your bank or do you pay Mum and she then pays utilities?
John White
England Jackman & Spacey |
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zamfir
Junior Member
303 Posts |
Posted - 10 April 2009 : 12:55:02
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I'm by no means an expert, but I can't see how they could decide you have BI in your mum's house at this point in time (your impending BR).
I assume you aren't listed on the deeds, you have no secured credit on it and your contribution to bills is no more than your fair share.
I moved back into my parents house prior to declaring BR, and after explaining this in my OR interview, was never asked anything about the running/ownership of their home (besides how much I contribute to the bills).
T. |
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Nick2009
Starting Member
9 Posts |
Posted - 10 April 2009 : 14:55:33
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Thanks for the replies 
My Grandpa bought the house in 97, and Mum rented it from him (with housing benefit) for a few years, then he signed it over to her (in Aug 2000).
I moved here with my Mum and brother in 97, and have lived here since. (My brother moved out last September.)
I've never paid bills directly as far as I can remember, I just give Mum a bit every month. Although I may have paid the house insurance once as a way of paying Mum back some money I owed.
Is there any way to find out what my local official receiver would decide, and how much it would be?
Also, if my Mum were to buy the B.I. from the official receiver, how long would they give her to find the money?
I've just tried to read the relevant bits of the technical manual, and I'm even more confused!
Nick.
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Edited by - Nick2009 on 10 April 2009 18:29:12 |
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John
New Member
United Kingdom
73 Posts |
Posted - 10 April 2009 : 20:02:17
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Hi
to have an interest in the property you must have:-
1) contributed to the deposit with monies not intended as a gift or loan
2) Contributed to the monthly mortgage payments
3) Contributed to the household expenditures so as to free up income of the mortgagee to enable the mortgagee to afford the mortgage payments.
From your post I gather your Mum was gifted the property and at no time had a mortgage of her own.
In which case there is no possible way you have an interest in the property.
John White
England Jackman & Spacey |
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Nick2009
Starting Member
9 Posts |
Posted - 10 April 2009 : 20:12:19
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Thank you very much John! 
Nick.
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John
New Member
United Kingdom
73 Posts |
Posted - 10 April 2009 : 20:24:35
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Hi
no problem Nick and in the unlikely event the OR so much as mentions an interest just explain who purchased the property and that it was gifted to your Mum.
You'll be fine.
John White
England Jackman & Spacey |
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tim73
New Member
57 Posts |
Posted - 10 April 2009 : 21:07:59
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| i live with my parents and just pay 'board' each month so surely the O.R. wont be interested in my parents home?? surely they cant be punished for my debt? my board covers rent, gas etc though i do buy my own food so is it likely the O.R. would be interested in my parents home (they own it outright) if this was the case then id rather be homeless. |
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Caroline
New Member
58 Posts |
Posted - 12 April 2009 : 11:22:35
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| I live with my mum and dad and none of the above was ever mentioned to me. The only thing the OR said was that my parents had obviously been subsidising me to some extent, which is true, but that was it. |
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Topic |
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Going bankrupt when living with parents.
