My daughters husband left 4yrs ago. He has not paid anything on the joint mortgage since that time. He is now thinking of filing for bankruptcy she is worried that she will have to sell the house. She has three children still at home.
Bankruptcy is only one option. There may be others that can have less a severe effect on the home.
Essentially, though if he does apply for his bankruptcy, then his share of the home will vest with the Trustee, who will want to realise his share of the equity.
That doesn’t mean the house has to be sold, he may allow your daughter to buy out her husband’s share of the equity. If she does this and he is no longer paying the mortgage, she may want to see a solicitor about transferring the home solely into her own name so this doesn’t happen again.
If there is no or little equity, the trustee may allow your daughter to buy out his interest in it for as little as £500.
If you can get her husband to contact one of our advisers on the number below, however, we can see if bankruptcy is avoidable.