question category: Bankruptcy

My husband has been made bankrupt. Will we lose our house.


I have just had a phone call from the Official Receiver - wishing to talk about the bankruptcy order from the Inland Revenue (in my husbands name). This was the first I knew about it. My husband has owed the Inland Revenue a lot of money for many years. He is self employed and hasn't filed tax return for 7 years. He has basically buried is head in the sand and refused to tackle the matter - despite me asking him time and time again. We are now at the point of no return - bankruptcy. Our house is in my name only - we couldn't get a joint mortgage in 2004 when we brought the house due to his credit rating. I have not worked since 2004 (bringing up our children) and so my husbands earnings have paid the mortgage every month. Do we still stand to lose our home?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Re: My husband has been made bankrupt. Will we lose our house.

Thats an extremely complex question which depends on how long you have been married, how much equity there is and who pays the mortgage etc.

I feel you need some advice from an insolvency practitioner quickly.

Your husband should be thinking about how to pay his debts, it is past the stage where an informal arrangement will be any use - presenting an IVA either through an IP or through the OR which will annul the bankruptcy order.

 

Re: My husband has been made bankrupt. Will we lose our house.

Here's a useful answer you may find useful -

will I lose my home

I think what Andy was saying is it depends how much equity is in your house. The Official Receiver does not want your house, he want the equity in it. As your husband has paid the mortgage, chances are the OR will try and establish that your husband has joint rights. How much is to be argued. If you have no equity, then the OR has nothing to gain by trying to force a sale. If you have it's about establishing what % of the equity your husband has. For example, if your mortgage is for £200,000 and the house is worth £250,000 there is £50,000 of equity. If after negotiation you decide your husband has 50% of this equity, you'll need to make an offer of paying the OR £25,000. You'll then keep your home, but have an increased monthly debt. It's also possible that a friend and family member can buy your husbands share of your homes equity.

 

Re: My husband has been made bankrupt. Will we lose our house.

My husband is also thinking of going bankrupt, he's had lots of chats with bankruptcy advisors and was told anything that was mine wouldn't or couldn't be touched, however I'd be livid if they did take anything of mine so I've been think of divorce to safeguard anything that's mine before they can take it! I paid the £60k as deposit and invested £20k in his business, he said if he hadn't paid me back within 3 years he'd give me his share of the equity. The house has subsidance so there's no equity in it according to the "advisors" but who do you believe, so far information is conflicting. BUT our accountant who was owed £250k went into bankrupt & he put ALL possessions into his wife name and he's now totally debt free & it didn't affect his life!!!

 

Want to ask your own question?

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

 

Our featured debt charity

Debt Advice Foundation

The Debt Advice Foundation offers:
 

  • Impartial advice
  • Debt solution to best suit your needs
  • Confidential helpline
  • Non-judgemental advice
  • No appointment needed