tad_admin Staff asked 8 years ago

My boyfriends ex girlfriend is declaring herself bankrupt but her name is on the mortgage and deeds in the house were living in!! She has never paid anything towards the house, not mortgage, bills etc etc nothing!! The only reason her name is on the mortgage is because he is a sole trader and couldn’t get a mortgage on his own without her name!! I have paid the council tax for 3 years and numerous other bills and he has always paid the mortgage! So what I want to know is can she sign documents to get her name of the deeds? If so how do we go about it and will it cost much? Can we remortgage if she is goin bankrupt? If she has equity out of the house do we have the option to pay the debt collectors the amount or will they just put a charge on the house? Please help!!

3 Answers
answered 8 years ago

If your partners ex-girlfriends name is on the mortgage and the deeds to the property the Official Receiver (OR) is going to have an interest in her share of the property in the event that she declares herself bankrupt. The fact that she has not contributed to the mortgage however will be taken into account.
At the time of bankruptcy the Official Receiver will consider any transactions that have taken place over the last 5 years and should they be deemed unfair he/she has the power to overturn them. If the OR deems that your partners ex-girlfriend has a right to a percentage share of any equity contained with the property he will initially ascertain whether she or a third party can buy out her share of this equity. Failing that the OR has the power to attach a Charging Order to the property for her share of the equity or indeed force the sale of the property.

Please seek further free money advice. Go to: https://www.talkaboutdebt.co.uk/debt-help

answered 8 years ago

If she does declare herself bankrupt then the Official Receiver will investigate any ownership/part ownership of any assets. This will also be to look at any transactions that have taken place, changes of ownership of assets. So changing her name at this stage will not affect the Official Receivers requirement to investigate whether she was entitled to any beneficial interest in the property. If she has, and had, no beneficial interest in the property then the Official Receiver will no longer be interested in the property. You would need to seek legal advice about making changes to the title of the property and your mortgage lender about the mortgage

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.

answered 8 years ago

My boyfriend lost his job, his home was repossessed, he lost everything, He is now living in my home until he can sort himself out. It is my home, I own everything in it, I now have debt collectors turning up at my home, looking for him. I told them that this is my property, they are not coming in to my home, that I will call the police if need be. The debts are not mine, and everything in my property belongs to me.
I now have the debt collectors sending mail, saying that my b/f is committing fraud by not replying to them, as my bf is ”apparently” registered as living with me, that they will get the police to come to my property to discuss the matter, or i could tell the debtors where my bf is permanently living! I have not replied to this, but I am considering legal action against them, my bf is on the verge of a nervous break down he is seeking professional help, these debt collectors wont leave me alone. I know they have no legal right to come to my property either.
Any advice?
I also am wondering if my BF credit history will effect mine if we at any stage got married etc?
Thanks Saz

ANSWER:
Writing a letter of complaint and sending copies of the complaint to the Office of Fair Trading may address the bad practices that you are experiencing, however it will not deal with the debt itself. His creditors are owed the money will continue to pursue him for the debt at the address they have on file as his current place of residence. They may choose to take a county court judgement, and may be able to apply for attachment of earnings or benefits in future. So it could help in some fashion but will not remove the underlying problem as the debts will still be outstanding.

Further court action and pursuit of the debts could add to the stress you are experiencing as a household and it may cause you difficulty in planning your future if you have not planned how to deal with these debts in the long term. If he calls a debt advisor they will initially prepare a Financial Statement for him and have a look at the bigger picture. There are many different ways of dealing with debts and the advisor will be able to identify all the options that he has at this stage.

His credit history does not have any direct impact on yours but may cause an issue if you are making a joint application for something. It could be his credit rating that causes a declined application but you will feel the effects of that decline. If you are not financially linked in any way then there is nothing to link to your credit reference agency file.