Joint mortgage, 1 person going bankrupt?

[e39darren]

Evening all, I arrived home from work to find my sister in law in tears to my missus and I asked what's up?
Her and her partner at the time bought a house in 2006 and both lived there with their 2 children until March this year when she caught him cheating, he moved out to be with the other woman and immediately stopped paying towards the mortgage.
Over the years they had run up £4000 of arrears and last month they were going to repossess so she had a loan off my father in law ( her credit is too bad to get one herself) and cleared the arrears.
She found out today her ex is applying for bankruptcy after he had car finance and can't afford it ( total debts about 10k) .
The problem is is that he is still on the mortgage so am I right in thinking if he declares bankruptcy they will seize his assets namely the house to pay back his debts?
She is going to phone a solicitor on Monday but can anyone put her mind at rest over the weekend.

She wouldn't be able to remortgage as her credit is poor and she only earns £20000 a year and the house is valued at £110000.

Thanks

[daemon]

e39darren said:

Evening all, I arrived home from work to find my sister in law in tears to my missus and I asked what's up?
Her and her partner at the time bought a house in 2006 and both lived there with their 2 children until March this year when she caught him cheating, he moved out to be with the other woman and immediately stopped paying towards the mortgage.
Over the years they had run up £4000 of arrears and last month they were going to repossess so she had a loan off my father in law ( her credit is too bad to get one herself) and cleared the arrears.
She found out today her ex is applying for bankruptcy after he had car finance and can't afford it ( total debts about 10k) .
The problem is is that he is still on the mortgage so am I right in thinking if he declares bankruptcy they will seize his assets namely the house to pay back his debts?
She is going to phone a solicitor on Monday but can anyone put her mind at rest over the weekend.

She wouldn't be able to remortgage as her credit is poor and she only earns £20000 a year and the house is valued at £110000.

Thanks

Can you even apply for bankruptcy for an outstanding car loan, given its secured against the car? I'd doubt it.

How much mortgage is on the house?

[MEC]

They will not cease the asset as such, but will look to recover his share of the equity. If there is very little (house price less mortgage) then they may ignore the situation, or allow your friend to buy the equity for a nominal amount. If there is significant equity and she cannot fund some or all of this then in time they may force a sale.....

[MEC]

They will not cease the asset as such, but will look to recover his share of the equity. If there is very little (house price less mortgage) then they may ignore the situation, or allow your friend to buy the equity for a nominal amount. If there is significant equity and she cannot fund some or all of this then in time they may force a sale.....

[randlemarcus]

MEC said:

They will not cease the asset as such, but will look to recover his share of the equity. If there is very little (house price less mortgage) then they may ignore the situation, or allow your friend to buy the equity for a nominal amount. If there is significant equity and she cannot fund some or all of this then in time they may force a sale.....

Dubious. Pretty much every mortgage is joint and several liability. That means he owes the bank the entire mortgage, as does she. They aren't overly fussed who is paying for what.

In the circumstances, it's very unlikely that she will be left without a roof due to his actions, but there may be some assertiveness needed to his creditors between now and then.

[Sarnie]

randlemarcus said:

Dubious. Pretty much every mortgage is joint and several liability. That means he owes the bank the entire mortgage, as does she. They aren't overly fussed who is paying for what.

In the circumstances, it's very unlikely that she will be left without a roof due to his actions, but there may be some assertiveness needed to his creditors between now and then.

They could place a charge of the value of his equity over the property, to be paid at point of sale or remortgage...

[MEC]

randlemarcus said:

Dubious. Pretty much every mortgage is joint and several liability. That means he owes the bank the entire mortgage, as does she. They aren't overly fussed who is paying for what.

In the circumstances, it's very unlikely that she will be left without a roof due to his actions, but there may be some assertiveness needed to his creditors between now and then.

If there is £10K+ of equity and he goes bankrupt then the Official Receiver will want something, irrespective of what the mortgage company may do?

[e39darren]

Thanks for the replies and I found out a bit more last night.
The endowment mortgage was for 120k and the year after they took out a joint secured loan for 25k.
The house is worth roughly 110-115k now so they have no equity.
His own debts are 5k on a credit card, 2k on a car loan which is he refusing to pay as the car broke down and he also had a 3k loan.
His joint debts are the mortgage and the secured loan.
Thanks

[MEC]

e39darren said:

Thanks for the replies and I found out a bit more last night.
The endowment mortgage was for 120k and the year after they took out a joint secured loan for 25k.
The house is worth roughly 110-115k now so they have no equity.
His own debts are 5k on a credit card, 2k on a car loan which is he refusing to pay as the car broke down and he also had a 3k loan.
His joint debts are the mortgage and the secured loan.
Thanks

Think he'd be silly to go bankrupt over just £10K of debt. Has he contacted any of the debt charities?

[RSoovy4]

Tonker's on the money (as usual).

[e39darren]

anonymous said:

[redacted]

anonymous said:

[redacted]

Thanks for the reply and yeah they were both a bit silly with money.
She has their 2 young kids living with them and she suspects he is going down the bankruptcy route as he thinks it's an easy way out of not paying his debts and she thinks he does want them to repossess the house just to hurt her.
Yeah there's no problem with her job.

[e39darren]

anonymous said:

[redacted]

Sorry if I have misunderstood your answer but it is only the one who is not living there anymore that is going bankrupt not my sister in law or doesn't it make any difference thanks

[RSoovy4]

e39darren said:

anonymous said:

[redacted]

Sorry if I have misunderstood your answer but it is only the one who is not living there anymore that is going bankrupt not my sister in law or doesn't it make any difference thanks

Both of them are on the mortgage, and so if he goes bankrupt then if affects her as well. His default (by going bankrupt) is her default too, as if she had.

The Bank will then be able to terminate the current mortgage.

What happens then depends on a lot of things like whether there is equity, whether there are kids there, and whether she can afford the mortgage on her own (unlikely).


Google "Joint and Several Liability".