Bankruptcy & joint assets

[bluetilidie]

Hi, I'm sure this question is asked ALL the time.... How are joint assets (ie mortgaged house) dealt with when one partner files for personal bankruptcy? I have many personal debts (cards, loans etc) that are now quite old (5 years+), I also have a joint mortgage with my wife. If I was to file for bankruptcy would we lose the house?

[seduraed]

Re: Bankruptcy & joint assets

If you haven't acknowledges or paid towards these debts then they are close to becoming statute barred. Statute Barring means that the debt drops off the crwedit file and creditors cannot enforce them .
Look very carefully at bankruptcy as it could have a huge effect . More experienced beagles will be along shortly

[FlamingParrot]

Re: Bankruptcy & joint assets

Hi, I'm sure this question is asked ALL the time.... How are joint assets (ie mortgaged house) dealt with when one partner files for personal bankruptcy? I have many personal debts (cards, loans etc) that are now quite old (5 years+), I also have a joint mortgage with my wife. If I was to file for bankruptcy would we lose the house?

If your debts are mostly old, unsecured debts, then there may be a better way to deal with them. Bankruptcy is a drastic solution that should only be considered as a last resort, when everything else fails. It depends mostly on the nature of your debts rather than the amounts. A lot of people opt for BR when they have debts to HMRC (Taxes, VAT, etc.) because they don't go statute barred, or large mortgage shortfalls where the limitation period is 12 years. It may not be worth to file for BR if your debts are just cards, loans, catalogues, etc. :thumb:

If you give us more details about your debts, we may be able to suggest an alternative course of action. Would be useful if you could tell us for each one of them:

• The type of debt (loan, credit card, etc.)
• Name of the creditor
• Name of current owner or DCA chasing you
• Date of last payment
• Approx. date you opened the account
• Outstanding balance
• Was there PPI?
• Anything else that would help

[FlamingParrot]

Re: Bankruptcy & joint assets

Hi, I'm sure this question is asked ALL the time.... How are joint assets (ie mortgaged house) dealt with when one partner files for personal bankruptcy? I have many personal debts (cards, loans etc) that are now quite old (5 years+), I also have a joint mortgage with my wife. If I was to file for bankruptcy would we lose the house?

To answer your original question, if the property is jointly owned, the official receiver is only entitled to the share of the property owned by yourself, this is usually assumed to be 50% of the equity. Your partner or other family members and friends can make an offer to buy out your share of the equity. See this for more info: http://resources.newbeginningsguide....nkruptcy.shtml