Bankruptcy..if I go bankrupt how will this affect my husband and house?

[katie005]

Hello !

I am sorry to start another thread but from advice given earlier today bankruptcy seems like the only possible solution and I am trying to check this out with national debt line but have been hanging on for hours...the thing that most worries me is this.....

I may have to go bankrupt owing to debts from over 9 years ago .Most debts are in my name only...just two are in joint names with my husband.

we live in a shared ownership property that my husband bought in 1993 before we married. It is in his name alone ...my name has never been added to the deeds.

My worrying question is this...if I applied for bankruptcy would the official receiver be able to take or force a sale on our family home? we have two children and apart from the obvious emotional ties to our home to rent locally would cost us a min of £1200 per month and my husband only brings home £200 more than that. In answer to someones question earlier we have had a joint bank account but do not at the moment. Some household bills are in my name..only 2 I think but could this be a problem? sorry for so many questions ...I know I need to take a deep breath and calm myself! Thank you to all those taking the time to read this.

[debtinfo]

the or will look to see if you have an interest in the property,

have you been earning thoughout the relationship

who paid the mortgage and bills,

have you contributed to improving the property i.e built an extension etc

[katie005]

Thank you for replying...I'm really grateful. Well, we have had a joint bank account until 2007/2008 and all money was paid into that but the mortgage and rent has always been in his name only. For the last 10 years I have earned very little as we have had children. I was planning to return to work but my son was very ill with meningitis and I ended up with MRSA...all a bit of a nightmare but we are still here! Of course I can prove that I have been the minor earner and when an extension was built ages ago there was no money put up by myself, no earnings etc to be taken into account on the application. The precious few household appliances we have got are second hand and have been paid for in cash.

[debtinfo]

The OR would look at it like this simplified example

 

If the Mortgage was £1,000, and the bills were £1,000pm and you both earnt £1,000pm each then it is clear that you have an equal interest in the property regardless of who actually paid what.

 

If there was the same outgoings but he earnt £1,500pm and you earnt £500pm. Then He is paying the Mortgage and you share the costs of the Bills. I suspact this is the situation you have and that means you have no interest in the property and the OR would not be able to claim any of the house. The OR will ask the same questions i have so be ready with the answers and you should be fine

 

Hope that helps

[katie005]

Thank you so much for this info...it is exactly what I was looking for and I am certain that we fall into the last category. I am just so grateful that I have found CAG...we live in an outwardly affluent area (lived here all my life!) and debt hanging over my head has been the most isolating experience..all my friends give no sign of any money worries even now and I haven't felt able to confide in anyone. Thought I was very much in the minority and this all stems from debts around 10years old . Thanks to you and everyone at CAG for the unstinting great advice and support ... xx:)

[debbiedebt1979]

Hey Katie,

 

just wanted to let you know that with regards the joint debts, if you go bankrupt those creditors will probably leave you alone but go for your husband to have them repaid in full, dependant on the level of joint debt and if there is any equity in the house then it could be best for both of you to go bankrupt, this VERY MUCH DEPENDS ON EQUITY AND LEVEL OF DEBT THOUGH, so please dont think im suggesting bankruptcy all round. Just be aware that once the creditors know of one half of the joint loan going bankrupt they will either go one way or the other an leave your husband alone or try to secure their debt to ensure they get something, they could do this by means of a charging order, however if when you have gotton rid of the other debts and payments you can afford to pay the payments to these crditors then you shouldnt have anything to worry about.

 

take care

debs

[jackieandwayne]

Before you take this step, aren't some of these debts statute barred? worth checking, there's load about this on the site.

[seylectric]

Just a thought, but if the debts are over 6 years old are they legally enforcable anyway?