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Bankruptcy Advice - Re Former Property


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Morning

I’m looking for a bit of advice regarding the effect on the property I jointly owned should I either be made or make myself bankrupt.

I split with my partner approximately 2.5 years ago in quite an amicable fashion. Partly due to this and largely due to the change of title fees I remained on the mortgage until the fixed rate expired. At this point my ex remortgaged and at the same time I completed the appropriate forms to release myself from the mortgage and title deeds in full. I did not receive any form of equity and as it currently stands from making enquiries the property is worth approximately £70 –75,000. The current mortgage is about £68,000.

If I were to go down the road of bankruptcy I would not want this to affect the property and subsequently my ex in any way shape or form. Does anyone know whether it would be possible to exclude the property based on the small amount of equity and the fact that I have not resided there or had any interest in the property for 2.5 years. Additionally the fact that I am not on the deeds and did not take any funds from the equity during the split?

I am in a real quandary with my options and the way I should proceed but would like to know more about the final step (bankruptcy) if this can’t be avoided.

Thanks

Roppa

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How long ago did you transfer ownership to you ex-partner?

 

The Official Receiver will want to know about this disposal, particularly as you appear to have disposed of an asset for no reward.

It is possible that the OR will perceive that you have an equitable interest of half the net value of the property (around £1,000-3,500 according to your figures). Your partner may have to pay this to the OR.

When you split was there any suggestion that you might be getting into financial difficulty?

 

One thing you shouldn't do is try to hoodwink the OR. They are very adept at finding things out, and if they find something you have been trying to hide you could be in a bit of bother. Be honest and open up front.

I really do appreciate all those 'thank you' emails - I'm glad I've been able to help. Apologies if I haven't acknowledged all of them.

You can also ding my gong if you prefer. :)

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  • 3 weeks later...

thanks for your reply - no at the time of our split i was not in any sort of financial mess.

 

Is there any way that i could pay the OR the money she would have to pay from the equity if this is the case. Also is there anyway to find out for sure if they would want to claim any small amount of equity from the property prior to seriously thinking about going down this road?

 

thanks

Roppa

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Once you are made bankrupt then the money isn't yours - it belongs to the OR.

Hence you cannot pay your OH's portion of the equity.

 

They would certainly examine the circumstances of the property transfer in some detail. There is a time limit going backwards for them to query any such transfers which I believe is five years however I'm not certain about that figure. The matter of your finances being in good order at the time is not particularly relevant : the fact of the transfer is.

 

You had best check the initimate details with the National Debtline http://www.nationaldebtline.co.uk

and also the Government's insolvency service http://www.insolvency.gov.uk

I really do appreciate all those 'thank you' emails - I'm glad I've been able to help. Apologies if I haven't acknowledged all of them.

You can also ding my gong if you prefer. :)

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Thanks for your replies.

 

In answer to your question Gizmo the equity figures are fairly spot on - i'd say a max equity of about 4k in total (realistic sale price) - so therefore 2k each for me and my former partner.

 

The initial mortgage was taken out at 125% in joint names so the deposit was paid from some of the 25% additional borrowing. This was taken out in 2001 and we split in 2006 - however from a legal point of view i wasnt removed from the title documents until December 2008. In 2006 i wasnt in financial trouble but it is fair to say that when my name was removed i was. That said i have had no interest in the property since 2006, i.e. she was making the repayments in full etc.

 

thanks

Roppa

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