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Barb
Starting Member
6 Posts |
 Posted - 13 August 2009 : 14:10:54
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Hi, my ex husband is filing for bankruptcy in the near future ...when he has worked his notice out in his present job.
We have a joint mortgage and usually pay half of the monthly amount each. For Augusts payment though he only paid £1, which has now put the mortgage into arrears. He is refusing to pay anymore payments towards the mortgage (we agreed to do this as his way of financially contributing to his daughters upkeep as they're both in full time education still).
My question is, now that he has put the mortgage into arrears, and no longer contributes to the mortgage payments, can the house be sold during bankruptcy procedings? At the moment the outstanding balance on the mortgage is £100k and if put on the market it would only sell for aprox £105-110k ... not leaving a lot after fees have been paid to agents and solicitors.
Should I be worried? |
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Jane.l
Average Member
511 Posts |
Posted - 13 August 2009 : 14:20:40
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Are you paying some towards the mortgage or is it just the £1 that your ex is paying? The harsh fact is that if the mortgage is not being paid, the mortgage company can repossess the house
There is a bit of equity in the house, once he is bankrupt, his half of the equity will in effect belong to the OR, I doubt for that amount though, that the OR would force a sale, maybe you could offer to buy the equity? Are you in a position to do this? You would of course have to pay the mortgage and any secured loans on the house though
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Barb
Starting Member
6 Posts |
Posted - 13 August 2009 : 14:36:51
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Hi, thanks for replying.
I pay my half of the mortgage without fail. The lenders know who is paying and who isn't. I have been in touch with them and they are doing their utmost to enable me to stay in the property.
They ahve offered to switch the repayments to interest only, but that requires a signature from my ex-husband and he's unwilling to provide it.
The lenders are also looking into ways of me possibly buying him out, but giving that my wage is fairly small (1/5th of the mortgage needed) i doubt they will be able to help to the full extent.
There are no secured loans on the house, but i wasn't sure if the mortgage in tiself is calssed as a secured loan?
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Jane.l
Average Member
511 Posts |
Posted - 13 August 2009 : 14:56:38
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yes, the mortgage is secured on the house.
The only way I can see for you to keep the house is to pay the mortgage and arrears and keep that up and try to buy his half of the equity out, if there is any, has the house been valued recently? It may have reduced. It would be better for you if there is no equity, that way, if he goes bankrupt, you could buy out his beneficial interest for £1 plus legal fees (about £200, I think) from the OR but you would need to keep up the mortgage on your own. |
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Barb
Starting Member
6 Posts |
Posted - 13 August 2009 : 15:01:33
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So just to clarify ... if I keep up the mortgage payments, including his half, the if the OR comes knocking I could possibly buy him out for £1 if there's no equity in the house?
Is it worth me getting some valuations done now...or wait till the time arises, or will the OR get his own valuations done on the house? |
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Barb
Starting Member
6 Posts |
Posted - 13 August 2009 : 15:09:15
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He does actually have a quarter share in the house he's living in now and that has been paid up fully. His share is worth approximately £28k, and was willed to him and his 3 borthers when his father died a few years ago.
Would the OR know about this equity as i'm sure this would cover my ex-husbands debts outright. |
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Jane.l
Average Member
511 Posts |
Posted - 13 August 2009 : 15:16:11
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I think you need to take some expert advice, but yes if there is no equity, you could buy his BI out from the OR. As it is a joint mortgage, for peace of mind, his name needs to be removed from that, maybe an expert could advise?
Regarding the other property, if his share of the equity would cover his debts, then he is not insolvent and should not be going bankrupt. If he does declare bankruptcy, then the OR will find out about this other property and want to realise this money for the creditors and the OR costs, so maybe will force a sale with such a large equity
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Barb
Starting Member
6 Posts |
Posted - 13 August 2009 : 15:18:24
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| Ok, thanks ever so much for taking time out to put things into perspective for me. It's much appreciated xx |
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Jane.l
Average Member
511 Posts |
Posted - 13 August 2009 : 15:22:17
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Thats ok,  sounds as if your ex has not really taken professional advice on bankrupty, or else he thinks he can prevent the OR finding out about the other property with equity in, I think this would be at risk |
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debtinfo
forum expert
2826 Posts |
Posted - 13 August 2009 : 21:25:31
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| Hi barb just a few thoughts. As it seems that he has not been fair with you, i think it would be worth sending a letter to his OR just to make sure they know about his other property. Also if he is working and not giving you anything then a letter to the CSA (or whatever they are called now) woul be the way to go. i Think 10-15% of his income for one child is the usual amount |
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Barb
Starting Member
6 Posts |
Posted - 13 August 2009 : 21:30:14
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Hi, i've been in touch with the CSA this week as i've reached the end of my tether with his lack of responsibility, so i'll see what they decide.
He hasn't actually declared himself bankrupt yet, as according to him, he's got to work his notice through before he claims benefits and files for bankruptcy.
As soon as I get a letter from the OR I will definately be pointing them in the direction of the other property as it is mortgage free.
Do the CSA need to know he has this equity too?
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Hi, my ex husband is filing for bankruptcy
