Speak to one of our specialist advisors 0808 156 7730

Q&As and Ask an Expert

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

9 years ago - Posted by tad_admin

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?

3 Answers

TAD Member

9 years ago

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!!!

TAD Member

9 years ago

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.

TAD Member

9 years ago

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.

Answer the question

If you have a question on a particular debt topic, you may find the answer in the questions below or in our full Q&A section.

Request debt help & advice

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean rutrum lacus at magna lacinia efficitur. Sed sodales, diam ac aliquam tristique, urna ligula eleifend lorem.

Our team of specially trained consultants can advise you on the best debt solution based on your current situation. For confidential advice Just fill in the form below and one of our team will call you back




Live Chat

Got a question? Our advisers will point you in the right direction.

  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed
Launch chat

Call us

Got a question? Our advisers will point you in the right direction.

0808 156 7730
  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed