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baguaboy
Starting Member
17 Posts |
 Posted - 12 February 2009 : 19:39:36
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Hi... I am considering bankruptcy as i have credit card debts of over £70k and am struggling to meet monthly repayments. My situation is that I live with my long term partner( NOT MARRIED) in her house...house and interest only mortgage has always been in her name.. i have been the main breadwinner in the hosehold.... the credit card debts are solely in my name. My question is : if I go bankrupt is there any claim against my partner or the house..even though I amstill living there ?(friends have suggested it may be advisable to stay with friends and be seen to having moved out/seperated whilst declaring bankrupt...any thoughts). Also a little worried inthat on some of the credit card agreements think i may have put down residential status as homeowner...as that was what iviewed myself as..not really renting...could this cause problems for me viz a viz bankruptcy.
Many many thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 12 February 2009 : 20:35:27
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Hi
if you have been the main breadwinner then irrespective of the fact that your name is neither on the deeds or mortgage you will have, providing there is equity in the property, a proprietary interest in it. This can put the property at risk but entirely depends on the level of equity and the percentage share eventually deemed as your interest.
This process is called Equity of Exoneration / Marshalling of Assets.
You must declare bankruptcy from your current address, wherever that is, but must do so in the court that holds jurisdiction for bankruptcy over the address which you have lived in for the greater part of the 6 month period immediately prior to the date of the petition.
As for the homeowner aspect, this is often the case and it is not common for the original agreements to be subject to investigation unless the OR is suspicious of wrong doing elsewhere.
That said, the insolvency service can't have it both ways, if you are deemed to have an interest in the property which could be claimed, then surely you were / are a homeowner - you just didn't realise the fact.
timendi causa est nescire
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baguaboy
Starting Member
17 Posts |
Posted - 12 February 2009 : 20:48:04
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Hi John...many thanks for the quick reply...how can I have an interest in the equity of the property if the money i have been contributing to the household has only gone to an interest only mortgage..seems illogical ??.quote:
Originally posted by John
Hi
if you have been the main breadwinner then irrespective of the fact that your name is neither on the deeds or mortgage you will have, providing there is equity in the property, a proprietary interest in it. This can put the property at risk but entirely depends on the level of equity and the percentage share eventually deemed as your interest.
This process is called Equity of Exoneration / Marshalling of Assets.
You must declare bankruptcy from your current address, wherever that is, but must do so in the court that holds jurisdiction for bankruptcy over the address which you have lived in for the greater part of the 6 month period immediately prior to the date of the petition.
As for the homeowner aspect, this is often the case and it is not common for the original agreements to be subject to investigation unless the OR is suspicious of wrong doing elsewhere.
That said, the insolvency service can't have it both ways, if you are deemed to have an interest in the property which could be claimed, then surely you were / are a homeowner - you just didn't realise the fact.
timendi causa est nescire
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John
New Member
United Kingdom
73 Posts |
Posted - 12 February 2009 : 21:38:08
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Hi
Ooops! Humble apologies - I really must concentrate more.
timendi causa est nescire
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baguaboy
Starting Member
17 Posts |
Posted - 12 February 2009 : 22:07:01
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Brilliant !...so it would seem there is very little reason for me not to go bankrupt ? just one other thought... given my circumstances, how would the OR assess my monthly outgoings...would it be a joint consideration with my partners affairs or could i just put down nominal figures for my contributions to the various bills...seems complicated.
Many thanks again
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John
New Member
United Kingdom
73 Posts |
Posted - 12 February 2009 : 23:55:30
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Hi
you should complete your expenditure list as a household, not as an individual, even though your partner is not declaring bankruptcy.
timendi causa est nescire
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baguaboy
Starting Member
17 Posts |
Posted - 11 March 2009 : 18:21:42
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| Hi Again ! Just a quick follow on from the above thread.....since then I have spoken both to the National Debt Helpline and the Insolvency Service and they both say definitely that I WOULD be deemed as having a beneficial interest in the house ad therfore here would be a claim on it...this appears to contradict the answer given by John...any further thoughts ? |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 19:19:57
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Hi
for the 2nd time in this thread I'm afraid I must offer my apologies, The fact is that my first response was correct.
If when you began paying the mortgage there was less equity than there is now then you do indeed have an interest in the property.
How much equity do you estimate was in the property when you took on the payments and how much is there in it now?
John White
England Jackman & Spacey |
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baguaboy
Starting Member
17 Posts |
Posted - 11 March 2009 : 19:27:52
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| Hi Again...thanks for the super quick reply !!Yeah there is more equity in the house now than when my partner bought it... over that period Ive probably earned twice what she has in salary terms...and weve been together for the whole time in this house... what formula do they use to workout the beneficial interest ? |
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baguaboy
Starting Member
17 Posts |
Posted - 11 March 2009 : 19:31:45
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Also weve fairly recently remortgaged to release a sizeable chunk of equity...when they consider the equity remaining do they just look at house value less outstanding mortgage...or would they ask where the equity release money has gone...thinking that it was a cynical move to hide equity from them ?
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 19:38:20
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Hi
as a guide, if you have contributed twice as much as your partner since your occupation then any increase in equity can be two thirds attributed to you and as such this can be claimed by the OR.
My next question, is the money you raised through the recent remortgage more than the sum of your share of the earned equity using the method of calculating your interest as above?
And yes the OR will definitely ask the same.
John White
England Jackman & Spacey |
Edited by - John on 11 March 2009 19:39:01 |
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baguaboy
Starting Member
17 Posts |
Posted - 11 March 2009 : 19:41:53
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Hi John....no its way less
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baguaboy
Starting Member
17 Posts |
Posted - 11 March 2009 : 20:06:38
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Hi Again !
maybe given this it would be best to go for an IVA ....since my situaton is approx £80k of credit card debt ...at moment really struggling to keep up with the repayments..but still doing it !! not defaulting or late yet...but....many of the fixed rate deals I had are now resetting at horrendous rates...so given this and a downturn in my trade I know I will be in trouble soon...an affordable IVA would be a way out but would they accept it given the equity in my partners name....or would this not be an issue when applying for an IVA.
Alternatively...and it is a real possibilty...should I just move out into a rented room and string it out for say a year before going bankrupt....if I did this how far back would the OR go to look for the beneficial interest....?? |
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John
New Member
United Kingdom
73 Posts |
Posted - 11 March 2009 : 21:58:11
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Hi
the OR could go back up to 5 years to identify BI.
How much estimated equity is there in total and how much did you raise through the recent remo and where did those monies go?
John White
England Jackman & Spacey |
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Topic |
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Hi... I am considering bankruptcy
