question category: Bankruptcy

Will I lose my house
Submitted on: 3rd Dec 2008 by Non-Member | Total Answers: 2

My mortgage is in my name only but if my husband is made bankrupt can I lose my home?

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Do I lose my home if I am bankrupt

It depends.

Unfortunately this is a very complicated area of insolvency law. Your husbands trustee in bankruptcy will investigate the circumstances around the ownership of your house and try if possible to establish an interest in it.

The things he will look at include:-

  1. Has the house always been in your sole name or was it transferred to you at a time when your husband was insolvent
  2. Has you husband contribute to the mortgage payments or to the deposit.

If so he will try to establish an equitable interest in the house Most trustees in bankruptcy will want to negotiate an amicable settlement rather than fight in the courts.

The usual outcome is that you make an agreed payment to the trustee in full and final settlement. In the past it was normal for this to be funded by a further advance on your mortgage but in the current circumstances this may be difficult.

Submitted on: 4th Dec 2008 by Andrew Redmond (not verified) Non-Member

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Will I lose my house

Andy is right and this is a very complicated area of Insolvency Law. Here's another resource that may help - Bankruptcy - whay you need to know

An obvious question. Have you considered an IVA where you will have to release equity but not lose your home? Or Debt Management?

Submitted on: 16th Dec 2008 by TA Member

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