Comments on: Will I lose my home if I declare myself bankrupt?

By: Lashonda Sagendorf

Lashonda Sagendorf — Tue, 09 Nov 2010 14:39:27 +0000

Loved this article, where is the donation button? hehe

By: Jo Wood

Jo Wood — Mon, 18 Jan 2010 18:27:30 +0000

Just to clarify re whether you should put the house solely in your name. I think you will find that the house will have to be in your name for at least five years before the date of bankruptcy. Obviously people try and move their assets once they are facing bankruptcy and this is in place to ensure that creditors are not disadvantaged. Also consider if you have endowment policies it is worth surrendering them to pay of your debts as these will be snapped up by the OR as one of your assets

By: Jo Wood

Jo Wood — Mon, 18 Jan 2010 18:17:02 +0000

A lot depends on how big your debts are and how much of the £50,000 you will pocket. Do not forget that if you go bankrupt the Offical Receiver (OR) will take into account moving costs, estate agents fess, solicitors etc. This can substantially reduce the equity you have in the property once it is sold. You may also find your house is not worth as much as you think. People do tend to over-value their homes. As far as keeping your house this is a good thing. If your husband does go bankrupt the OR will ask him to get two estate agents to value your property so he can take the average to reach a price. From this moving fees etc will be deducted. He will then use the assets in your home to pay your creditors. Be aware the housing market is very weak at the moment and in a lot of areas outside London is still falling. This could result your mortgage being as much as the house is worth once moving costs etc are taken into consideration. If this is the case the OR will not have any interest in your proprty and as long as you can afford to keep paying the mortgage you will be able to stay in your house. Alternatively if the valuation only gives you say around £5,000 equity and you can afford to pay this the OR will be more than happy to accept a reasonable offer from you. Do not forget if your husband goes bankrupt all debts in his name will be wiped out which will probably give you a little more cash to play with. However the mortgage is a secured loan and if you are unable to meet the repayments the mortgage company will inevitably at some point repossess your property. Your husband’s share of the mortgage will not be wiped out in the event of bankruptcy I am not a lawyer or an insolvency expert and this is really a question for them. There is plenty of free advice available at places like National debtline http://www.nationaldebtline.co.uk and the Citizens Advice Bureau. I hope this helps

By: Claudia Dawe

Claudia Dawe — Mon, 18 Jan 2010 16:27:32 +0000

Since the beginning of the recession enquiries in my husband’s company have slowly dried up (building trade)to the state now where he cannot trade and faces bankruptcy. He is 62 and finding it almost impossible to find a job. Along with directors guarantees for his business overdraft, the remaining equity in our jointly owned property is approximately £50,000. Would you advise selling the property so as not to become bankrupt, or tansfer the equity to me, depending whether I could afford the mortgage payments. We have considerably improved the property in the last 2 years, I myself took out a £7,500 loan for a kitchen, for which it is looking likely that I will be paying a kitchen in a house I no longer own. Can I offset this against my share of the equity ? I am also now paying the mortgage based on interest only. If my husband goes bankrupt will I be penalised for not paying a reasonable “occupany rental”, ie is £133.20 per month insufficient against one would pay in rental.

By: Claudia Dawe

Claudia Dawe — Mon, 18 Jan 2010 16:20:04 +0000

Can you advise on my husband’s company involvency and whether he should declare himself bankrupt or sell our home