My husband owns his own business and is seriously thinking about declaring himself bankrupt as the tax office will if he doesn't. We are clearly worried about losing our home but if he does declare himself bankrupt, how will that effect us or our belongings?
You need to check the equity position with regard to your home - obtain a local estate agent valuation (pretending to put it on the market - ask for the 'quick sale figure') also request an up to date mortgage balance and see the equity position. If your home is in negative equity you will not necessarily lose your home as you will be given the opportunity to buy back the 'beneficial interest' (the OR's name which is automatically recorded on your property at the land registry on the makin of the banruptcy order)
If your home is in an equity situation the non bankrupt party would be offered in the first instance to buy out your share of the equity. Your husband would be able to keep his 'tools of trade' and the OR does not take your 'belongings, although they would close down his buisiness, but he would be able to recommence trading if he so wished providin git is in his own name or the name under which he went bankrupt ( he would not be able to set up in another name)
I hope this helps
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
My husband owns his own business
Posted - 13 July 2009 : 12:41:30
