Both our names are on the mortgage however he was the main earner for four and a half years. We’ve lived at the property for 5 years. He’s moved out and I have taken over the mortage payments. I do not earn enough to have his name removed and be the sole account holder. He is planning on declaring himself bankcrupt in November this year – whilst still racking up bills on his credit cards. He left here £19k in debt and is now over £29k in debt. How will his bankcruptcy effect me? I live in the property with our 2 children. I cannot afford to rent and would have to go into social housing if I’m forced out. What can I do to stop this from happening? We owe around £117k and the property is worth around £145k now.
If your ex-partner declares bankruptcy then the Official Receiver will offer you the chance to buy his interest in the property. This will be the cost of his share of the equity (currently £14,000 based on the values you gave) plus an administration fee. He would still have joint liability with you for the mortgage, unless the mortgage company agrees at some point in the future to put the mortgage in just your name. If you cannot buy the Official Receivers share of your property then you may have to sell it so that he can realise your ex-partners share of the equity to repay his creditors.
You will be offered the chance to buy the interest approximately 2 1/2 years after the bankruptcy is declared, so you don’t need to worry that you will be made homeless in November.
If any of the unsecured debts are in joint names, then you will be liable for the whole amount once the bankruptcy has been declared.
This question has been answered by Christians Against Poverty, a leading debt charity offering hope and a solution to anyone in debt.