I owe around £85,000 of which £12,500 is for a tax bill due at the end of January. I work in Financial Services and realise that I will lose my job if I go bankrupt or go down the IVA route. My income has not been sufficient over the last few months even to go down the DMP route and have been advised by the CCCS to offer token payments only which I have done and most of my creditors have accepted. However, this doesn't get rid of my debt and I still run the real risk of losing my job as I have to show that I am fit and proper under FSA rules. I am self employed but that doesn't stop me having my contract terminated with the Network I'm with if my position doesn't improve dramatically and quickly which won't happen. I have many questions to ask but I am concerned as to the safety of a property I jointly own with an ex partner but rent out to a young family. I understand that the OR will go for the property which is worth around £270k with a mortgage of £203k. My ex partner has a Deed of Trust drawn up by a Solcitor when we bought the house in 2006 to safegaurd her £50k deposit she put down. Will the Deed of Trust stand up in court or does it not protect her when bankruptcy comes into it. As I have not had anything to do with the upkeep of the house for some time, do any of the costs she's incurred through the upkeep, count in her favour?
The deed of trust stands as long as it is a true reflection of the monies put into the property. So if she put £50K deposit in then the deed of trust will stand. As regards the rest of the equity the OR will go with the status quo 50:50 split and it will be down to you to prove otherwise.
The other problem you may have is that the OR can take 50% of the rent received and is under no obligation to pay the mortgage, this can lead in certain circumstances to a repossesion. Unlike family homes the OR is under no obligation to offer the equity back to you or a friend or family.