Is it possible for one person in a relationship to go bankrupt (as the majority of the debts are in their name) but the two of them jointly own a house. What would happen in this situation?
Thank you. If the house had no equity in it at all, what would be likely to happen? (I am going to be speaking to other people about this as well, but this is a very useful website)
If the property was deemed to have no equity or negative equity you would be able to purchase the 'Beneficial Interest' - what this means is (in basic terms) on the making of a BO the OR's name is recorded on the property at the land registry (this is called beneficial interest0- to prevent the property being sold - if following thr OR's enquiries the equity situation is nil or minus, you will be given the opportunity to purchase the Beneficial interest ofr £1 each plus £211 costs - this removes the OR's name and removes the property from the bankruptcy and out of the reach of your creditors. You can speek this process up by getting a couple of local estate agent valuations (ask for a quick sale figure - ie to market the property at a figure likely to achieve a sale) and order a copy of an up to date mortgage statement - these are the documents the OR will require to establish the equity position.
You must be up to date with your mortgage and of course be in a position to maintain your mortgage payments for your property not to be at risk
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
Is it possible for one person in a relationship
Posted - 21 September 2009 : 17:21:18
