question category: Bankruptcy

If my partner goes bankrupt how will it affect me?
Submitted on: 23rd May 2009 by Non-Member | Total Answers: 1

Im all very confused. My partner may have to go bankrupt this comming month. How will this affect me? I live in his house - mortgage is in his names, the debts are all his in his name. We were thinking about getting married in a years time but he is now worried that they will then try and involve me in his bankruptcy and take anything that I own. What will happen???

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Re: If my partner goes bankrupt how will it affect me?

Thats a very complex question which depends on your circumstances.

Bankruptcy is a serious matter, but sometimes it is the only way to resolve a situation that isn't getting any better.

In Bankruptcy a person has their debts dealt with by the Official Receiver and won't have to pay them directly. After 1 year they will usually be discharged from bankruptcy and will be debt free.

The other side to bankruptcy is that the debtor will lose their assets. This includes cars, valuables and houses. You say the house is just in his name. If there is equity in the house it is likely it will be sold.

If you have dependant children living in the house you will be given at least a year to find other accomodation.

If you have lived in the house for some time you may be able to claim an interest in the house - just as in divorce - which would reduce the available equity in the house.

Your partner will also have the option of selling the equity in his house to a third party e.g you or a relative and staying in the house rather than having it repossessed.

I hope your partner has considered all the other options - an IVA being the one that springs to mind.

If you have no debts and nothing in joint names, bankruptcy shouldn't affect you at all.

Submitted on: 26th May 2009 by Darren Member

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