I own half of a house that is in negative equity. The other half belongs to my ex. He has left me in a significant amount of debt through credit cards and loans that were in my name because he could not get credit. Now we are seperated he is refusing tohave anything to do with these debts and I am left paying them. I am now expecting a baby and my maternity pay only provides me with half of my usual monthly wage while I am on maternity leave therefore this will not even leave me enough to pay the debt each months let alone live and look after a child. I am looking at declaring myself bankrupt and was wondering what would happen to the house i currently co-own even though it is in negative equity. would my ex still be able to live there without any consequences of my bankrupcy if I was to do this?
Yes he is living in the property and he is paying the mortgage which is a tiny amount of 223 per month. He refuses the leave or to rent the property out so that it would cover the mortgage payment plus the debt. I am staying with my parents until I rent somewhere but it is impossible to ppay for rent and living costs due to the debt. I am unable to stay with parents as there is not enough space for me plus a baby. Any suggestions
If bankruptcy is the best option for you then any shortfall arising from repossession or sale of the property will be written off in your bankruptcy, so you have nothing to worry about.
However, the official receiver will value the property in 2 years and 3 months from your bankruptcy to see if there is any equity and they will want your share if there is. Again, this won't really affect you, just him.
If there is no equity and he carries on with the mortgage payments, then he can remain in the property.
I own half of a house that is in negative equity.
Posted - 14 March 2012 : 09:55:25
