In bankruptcy, it is the job of the Trustee to realise any assets you have, including your share of an assets that are owned with someone else If only you are going bankrupt they can only look at your share of the equity. For the majority of people this is 50% of the equity but it can depend on how the mortgage payments have been paid, deposits made when purchasing the property, along with any alterations to the house.

The Trustee in bankruptcy has 3 years to "use it or lose it" when deciding whether to pursue for the equity in your home. They are only entitled to sell your home if the overall result is cash available to creditors being higher than £1000. So it very much depends on how much equity is available in your property and how much of that equity is yours.

Agreements are often made by the Trustee to sell the equity to the co owner of the property. The amount that this is sold for can be far less than the amount that would be required to buy it on the open market. This is due to the high costs associated with the forced sale of a property and the costs associated with the bankruptcy process itself. VAT being one expense that is deducted from the proceeds. This may mean that you personally may own less of the property than before the bankruptcy but you would be able to stay in your own home

It is quite a complex situation and I would advise you do speak to a debt advisor who will take a closer look at the circumstances. They will also be able to advise if there is another solution less drastic than bankruptcy for you if it appears that your property is at risk

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're looking for an alternative to Bankruptcy, Debt Advice Foundation provides a free, confidential helpline and can advise you of all your options. Click here to find out more.