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tcasc
Junior Member
United Kingdom
172 Posts |
 Posted - 13 April 2008 : 09:35:39
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I declared myself bankrupt on 9th Jan after taking advice from an IP who informed us that my partners house would not be affected. I moved out of my rented house about 18 months ago to live with her. She owns her house and has always paid the mortgage etc. 12 months ago we moved and again she obtained a mortgage and used the equity in her house towards to new one etc. About 8 months ago she went part time. We did try to arrange an IVA but the creditors started asking for some of the equity in her house and we were advised that bankruptcy was the best option. Once i moved in with her contributed to the household expenses, we didn't have a rental agreement or anything like that as this clearly wasn't the why were living.
When she went part time her income fell and i know earn approximately twice as much as she does. Her income is sufficient to pay her mortgage but of course they would be little left over if it was just her living there. We submitted a joint income statement of the BR petition as we were advised to by an IP. However the OR has now passed my case to a firm of IP and i have a trustee. This seems to suggest that there is some suggestion that i have some assets! My only asset is my salary.
My question is, will the trustee claim that i have some beneficial interest in my partners property? If so how would this be calculated? I can see that it might be possible that they might make such a claim as i do live in the house but as i understood the law i don't have any rights to the house.
Before i was met my present partner i also lived with someone who owned her house and i suppose may be considered to have contributed towards her mortgage so would that count too! What would happen if we split up and i moved out to a rental place? Should we draw up some sort of rental agreement? This would impact on any IPA that gets made but that would be preferable to her house being or any part of it being considered an asset of mine!
If it makes any difference when she applied for the mortgage her mortgage company asked me to sign a disclaimer about the house which i happily did. I have now idea how long we may stay together as life is never that straightforward ! Anyway thanks for your time.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 13 April 2008 : 09:42:56
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Hi there and and welcome to the forum.
They may want to have a look at the possible claim but I really don't think is is remotely likely.
In the same way a person renting from a landlord has no claim on the equity ( even though the rent is used to pay the mortgage) then provided that you are not on the deeds and have not put in any deposit you have no claim on the asset.
If you were married it might be a different case if you were contributing directly to the mortgage.
Suggest you see what they ask for and advise us from there.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 13 April 2008 : 12:22:05
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Unless you have other assets, the only reason that your case has been passed to a private sector IP (like me!) is that he feels there are assets to pursue or a creditor has made a request for an IP to be appointed - again suggesting that there may be assets as people like me rarely agree to accept appointments without assets, unless someone else is agreeing to fund our costs.
The position regarding your partner's property is fairly simple to establish, and this is how I would tackle it if I were your Trustee. You have been living in the property for 18 months, during which time you have been supporting your partner who was not financially independent of you - and therefore you have made a contribution towards the household which could develop a beneficial interest in the property. However, your relationship is relatively new, you are not married, and have not been paying any rental towards the property. There has to be some argument that this should counter against any interest you may have acquired, so I would get all of your paperwork in order to fight any claim which may be brought.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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tcasc
Junior Member
United Kingdom
172 Posts |
Posted - 14 April 2008 : 10:46:32
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| Hi Thanks for your comments. I feel reassured! I dont have any other assets besides my car which the OR has already told me i can keep as i need it for work. It is worth very little anyway! The only thing which occurred to me was my ex-wifes assets.However We separated in 2000, 8 years ago. Can an IP undo a divorce settlement? I will keep you informed. Thanks |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 14 April 2008 : 12:16:18
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Hi tcasc,
The OR could challenge through the court a divorce settlement, but the undoing would be the decision of the judge, however they will only go back five years, therefore at eight years you have little to worry about.
I hope this helps.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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tcasc
Junior Member
United Kingdom
172 Posts |
Posted - 02 February 2009 : 15:54:31
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Hello all
Kust thought i would let you know that no claim was made on my partners house or the assests of my ex wife. The investigation seemed to take very little time and i was discharged 3 months ago. There was in IPA but we were able to negioste this to a very reasonable level. I was surprised at what was taken into account. I even asked for about 25% to be removed from their request and they agreed without any discussion!
So thanks for all the advice. I will try to help others when i can. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 02 February 2009 : 15:59:14
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I'm glad things worked out for you x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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will trustee claim i have beneficial interest
