If you go bankrupt does it more or less gaurentee you will loose your house although you have no equity in it

Question

My sisters boyfriend went bankrupt today and they are worried they will loose the house. He hasnt gone bankrupt because he cant afford the mortgage, he can afford that no problem, its because his ex had half the house they had together and also had loans left right and centre which she left with him and there is no other way out - he owes over £60,000 and cannot pay that. The judge asked who helps pay at the moment and he said his partner (my sister) pays in to the mortgage and he is trying his best to pay a bit to the debt his ex left him in. The judge said that because although my sis is not on the mortgage deeds only her bf is they can proove that she pays in to the mortgage because there is a direct debit set up to go straight in to her bf's account which pays the mortgage. He also said because of this and because there is no equity in the house they have now they will more then likely not loose the house. Anybody else got any adbice or had a similar thing happen? Be honest thanks

Answer 1

not sure about above but he can transfer the house to ur sis thatll stop it but they cant get married until the bnkrupcys been discharged

Answer 2

I don't buy "junk" (and that is all it is) on tic

I save up the cash OR I do without.

Answer 3

I may have got some of your details muddled, if you need clarification let me know.

Your sister's boyfriend is bankrupt.  this means his share of the house now belongs to the Official Receiver.

Although she isn't on the deeds of the house - because she is paying to the mortgage  she will be deemed to have built up an interest in the house. So if the house was sold - she could claim a share of the equity.  - A good reason for the OR not to bother repossessing the house.

House prices are falling so if there is little equity now - there is not likely to be any in the near future.

If there is no equity in the house the OR will offer to sell the boyfriends share of the house back to your sister for a nominal sum.  Say £1000.  

But these are just principles.  Shortly the boyfriend will be interviewed by the OR and he will do the maths and come back to the boyfriend with a decision.

THEY MUST NOT TRANSFER THE PROPERTY TO ANYONE WITHOUT GETTING SANCTION FROM THE COURT

Answer 4

http://www.articlesphere.com/Article/Rec...

I honestly dont know regarding this one sorry. I am going through bankruptcy at the moment and I hope my post can help.

Answer 5

A property is certainly considered in a bankruptcy petition. It will be down to the creditors to insist on the sale but it will be up to the official receiver to decide. He will base his decision by looking at all other possible options which is to be fair to all parties concerned

eg if the debtor has other assests such as cars, shares etc and he also has a secure regular income it is possible to avoid a property sale

Answer 6

If they have no equity in the home they lose nothing. It is good just to get out with the money spent.