Bankruptcy Laws
Discussion
…..however, your friend’s wife will have a black mark against her name as she resides (I assume!) at the same address as the person being made bankrupt. It’s the address of the bankrupt person that gets flagged up first. So, she may have difficulty getting credit by association even though she herself is not bankrupt.
StevieBee said:
…..however, your friend’s wife will have a black mark against her name as she resides (I assume!) at the same address as the person being made bankrupt. It’s the address of the bankrupt person that gets flagged up first. So, she may have difficulty getting credit by association even though she herself is not bankrupt.
Think you might find that is not the case as much these days.paoloh said:
I have spoken to him and the debt is solely in his name. Although married, they have no joint debts.
Do they own the house jointly? If so, she may be required to either "buy" his equity to pay into his bankruptcy or sell the property if this isn't possible. Other than that, she has no requirement to declare bankruptcy.As smartie has said if they own the house together, the official receiver will be interested in his share of the beneficial interest in the property.
In summary the beneficial interest is the difference between the Value of the house as confirmed by a Chartered Surveyor, minus anything secured on it. This includes mortgages and 2nd charges such as secured loans.
His wife will be able to make an offer to buy back the beneficial interest, minus the cost of sale. For example if his BI was £10k, you would offer somewhere in the region of £7k.
In summary the beneficial interest is the difference between the Value of the house as confirmed by a Chartered Surveyor, minus anything secured on it. This includes mortgages and 2nd charges such as secured loans.
His wife will be able to make an offer to buy back the beneficial interest, minus the cost of sale. For example if his BI was £10k, you would offer somewhere in the region of £7k.
paoloh said:
House is solely in his name.
Only joint debt is a flat they own. No equity in it due to current market I am told.
So they go after her for any shortfall on this asset? Only joint debt is a flat they own. No equity in it due to current market I am told.
Is he getting advice elsewhere?
Has the house always been in his name only? Have they carried out any swapping of assets in readiness for bankruptcy?
Right if there is genuinely no equity or less than £1000 then the Official Receiver will not be interested in it. I need to double check for you but the figure of £1 being paid to the Official Receiver springs to mind.
I should add however that the actual value of the house will have to be determined by a qualified Chartered Surveyor, not what your friend thinks or what the local estate agent says as a result of a free appraisal.
Approx £150 should get you a valuation from a CI. You ask the CI for a valuation for a forced sale and this is the one time where you actively point out to the CI all the faults with the property.
I should add however that the actual value of the house will have to be determined by a qualified Chartered Surveyor, not what your friend thinks or what the local estate agent says as a result of a free appraisal.
Approx £150 should get you a valuation from a CI. You ask the CI for a valuation for a forced sale and this is the one time where you actively point out to the CI all the faults with the property.
what about joint credit-cards / joing bank-accounts etc. surely if they are both named on them she would get some what of a black mark, however small...???
maybe check out some of these sites / pass them on...
http://www.urlrunt.info/Y37Q
or:
http://www.urlrunt.info/TVCH
it maybe worth emailing some of these people??
The Moose
maybe check out some of these sites / pass them on...
http://www.urlrunt.info/Y37Q
or:
http://www.urlrunt.info/TVCH
it maybe worth emailing some of these people??
The Moose
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