We live together and the only bill i contribute towards (on paper) is the council tax. He owns his house and it is only his name on the mortgage. I have never been on the mortgage, never contributed towards it and haven’t contributed towards the deposit. I give him a lump sum every month to help with the running of the home. If i go bankrupt will it effect him?
It is unlikely that you going bankrupt would adversely affect your boyfriend. However there is a slim chance that the Official Receiver would deem you to have a beneficial interest. Please seek further free money advice, click here: https://www.talkaboutdebt.co.uk/debt-help
Your bankruptcy will only affect you and will have no impact on your boyfriend. However as part of your bankruptcy the official receiver will be looking to set up an income payment arrangement, whereby you pay into your bankruptcy for a period of three years, for the purpose of calculating what amount this should be you will need to supply details of your boyfriends income so that the official receiver can calculate what percentage of the household bills you should be paying and therefore what disposable income you have available.
With regards to the property, in bankruptcy the Official Receiver looks at any beneficial interest that may have accrued in property. Beneficial interest is different to the legal title to the property which is held by your boyfriend.
Whether you have any beneficial interest in the property will depend on the timescale involved. If you have only recently moved in then the beneficial interest in the property will be minimal and therefore the property may not even be a consideration. However if you have previously contributed in money, or money’s worth, to the cost of any improvements to this house, this could give you beneficial interest. This would have to be substantial and identifiable e.g. a garage or extension to the house. Your beneficial interest in the property might then be the financial value of that improvement.
This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.