question category:

Legally separated but my (ex) husband wants to go bankrupt in the next 2 years.

Legally separated but my (ex) husband wants to go bankrupt in the next 2 years. Will I be able to keep the house or will it be taken? Our youngest child still lives with me (Aged 18 but still in full-time education) and I have severe health problems. I am legally separated (5 years) but not divorced. In the legal separation agreement I waived all rights to my husband's future pension in exchange for our small house passing from his sole ownership to my sole ownership. It is heavily mortgaged and despite me being the sole owner, the building society won't allow me to take over the mortgage as I am disabled, but I am paying the mortgage from my bank account. The mortgage is therefore in his sole name. My estranged husband needs to go bankrupt in the next few years as he has huge debts in his sole name. My situation seems to be unusual. Do I have any protection?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Re: Legally separated but my (ex) husband wants to go ...

If your husband does decide to go bankrupt one day then there will be time when proof of ownership of the property will need to be checked. This is part of the bankruptcy process and is to find out if there is any money available from the property, to pay into the bankruptcy. At the time of the bankruptcy order any equity that belongs to him will automatically be available to the Trustee in bankruptcy. At that time you might need to present information to prove how much of the property you own and how much is now automatically owned by the Trustee. If the end result is that he had no equity in the property then there will be nothing for the bankruptcy. If you are concerned that he may still have some rights to some equity in the house then you should take advice from a solicitor to see whether there is any potential risk in the future.

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.


Want to ask your own question?

The content of this field is kept private and will not be shown publicly.


Our featured debt charity

Debt Advice Foundation

The Debt Advice Foundation offers:

  • Impartial advice
  • Debt solution to best suit your needs
  • Confidential helpline
  • Non-judgemental advice
  • No appointment needed