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Bankruptcy

(8 Posts)
Bringiton2019 Mon 21-Oct-19 18:01:07

Hi
Does anyone have any idea regarding bankruptcy please?

My ex husband is considering applying for bankruptcy, but has just informed me that my name is still on the mortgage of one of his houses.

How does that affect me??

Scared and angry to say the least!

TIA

inwood Mon 21-Oct-19 18:11:38

How many houses does he have?!

You will be implicated in bad credit regardless assuming he is defaulting on payments.

Bringiton2019 Mon 21-Oct-19 18:19:32

He has 3, but only one has my name on the mortgage.

I haven't paid a penny on this mortgage, it was all his account details.

MarieG10 Wed 23-Oct-19 15:26:30

Was removal of your name from the mortgage and property ownership dealt with in the divorce and consent order? If not then why not and yes you could be liable

HugoSpritz Wed 23-Oct-19 15:30:14

If you are on the mortgage then you are a joint owner. If the house is sold by the Trustee in Bankruptcy then the mortgage will be repaid from the proceeds of sale and you will get half the equity and the Trustee the other half unless there is a trust deed stating the beneficial interest is not 50:50.

Bringiton2019 Sat 26-Oct-19 20:52:38

The letter from the solicitor says that we have no financial commitments together.

@MarieG10 I never thought about it to be honest.
I've had that much to deal with over the last year, I didn't even think about it.
I'll look into getting it sorted ASAP.

Collaborate Sun 27-Oct-19 11:01:18

If the house has to be sold you will get exactly what any court order on divorce says you’re entitled to. If there’s no court order then you will get as much as the deeds say you’re entitled to.

MarieG10 Mon 28-Oct-19 07:27:44

The potential problem that you may have, is that if the mortgage company foreclose on the mortgage, and which you are jointly responsible for then you will be liable if there is any loss to them. If there is lots of equity then it may not be an issue and you will get a balance. However, many houses that have been repossessed are taken and sold at auction for far less than they would normally fetch in the open market and then leave a debt which both mortgage holders are liable for, but which the company can pursue both, or just one for. Sometimes many many years later.

If you have your name in the mortgage then I suggest you are proactive and see if you can agree with the ex to market it ASAP to mitigate any loss, or maximise a return of capital to you.

However, you still need to get to the bottom of how/why your name is on a mortgage that you didn't know about. Was it fraud in his part, negligence in solicitor part? For example the existence of the property should have been declared on the form E during the divorce so what other assets haven't been declared.

It sounds like an unholy mess to me

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