Hi everyone, and thanks in advance if anyone can help me with my dilema.
I split with my partner of 6 yrs 4 months ago. When we split i was training to be a Personal Trainer and so had no income. Since then i have become a freelance personal trainer and am currently earning very little money as i need to build a client base.
we have a mortgage togther with no equity . £150 k and recently valued at £150k. there is also a secured loan on the property of £20k.
My ex has said she wants the house transferring in her name to whcih i have agreed and so has the mortgage lender. the loan (nemo finance) have agreed to this also if i am underwritten on the loan to continue paying. myself and ex agreed that we would do this and in a couple of years time when there is equity in the property she will remortgage and pay off the loan.
I myself am considering bankruptcy as i have approx 27K of unsecured debt and cant afford to make the payments. i have been to a Financial advisor who explained that the creditors wouldnt be able to do anything with the property as there is no equity in it. they would however try and reclaim a car i purchased for 16k thats is registered in my ex's name and is her car. My ex however has been to her solicitor who has said that the creditors would be able to but a clause on my banruptcy saying that when there was equity in the house (up tp 5yrs) they could force her to sell paying back my share of equity to the trustees..
i also have a property with my sister where again there is approx 2K in equity. i was informed that they would ask my sister if she would like to buy out fro a nominal amount otherwise when the property was sold the trustees would get my share of the bankruptcy.
any advice on these matters would be truly appreciated
I would suggest you speak to an expert to go over the 3 issues carefully.
You don't want to still be on the nemo loan with any responsibility whatsoever because if after after bankruptcy your ex failed to make payments or had difficulties they could come after you.
The house with your sister is again slightly different - is this a buy to let investment or is this a residential home?
Lastly with the car purchase, depending upon when it was purchased etc it is concievable that the Official Reveiver may decide that you had some interest in it.
You just need to go through the 3 main issues and review your position carefully
the reason i ask is because i went to see an Insolvency Manager who seemed sure that the result would be as i said yet when my ex went to she a solicitor they said they would likely put a charge on the house, enforcing her to sell when there is equity.. there will be no issues with regards to my ex being able to pay mortgage and loan in her name.
basically we are still friends i dont want to put her in a position where she could be forced to sell the house in a few years time.. again any help is greatly appreciated
bankruptcy questions
Posted - 10 April 2009 : 13:39:59
