Bankruptcy and marriage separation

[FassbendersWife]

Hi, I am due to speak to a solicitor on Tuesday but I wondered if anyone has any experience/knowledge.

To make a long story short, my ex-husband (not yet divorced) is thinking of bankruptcy, but we have a jointly owned house that I live in with the kids. I also have MS and the house has some adaptations that I need due to my disability (which is progressive in nature).

I am so scared about losing the house because there is no way I could afford a new one at the moment (I am no longer working so only have ill health pension as income).

I have heard that in 'exceptional' circumstances they won't take the house but not sure if this is considered exceptional? He is self-employed so step-change have said that they can't help at this stage.

Thank you for any experiences

How much debt is he in and how much equity is in the house? Just wondering if you could afford to buy him out.

I can't I'm afraid :( His debt is about 25k and the equity is about £100,000. Unfortunately, because I only have my ill-health pension now, I've recently been told by a financial advisor that I can only get a mortgage worth about 60k The current mortgage, which I am able to pay, is just over £80,000.

That amount of equity might be a problem, but surely your exh can secure his debt onto the mortgage?

Ooh, I don't know, would that mean they could take it out of the equity but I could stay in the house until I need to sell (at which point they would get their money)? My problem is my mortgage is based on what I used to earn not on my current ill health pension so I couldn't afford to remortgage to release the equity.

Your share of the equity is safe The 25 grand they need would come out of his. However, if you got a court ordered settlement that granted you all the equity you should also be safe
Has he got a pension at all?

Nope, no pension. I do but not very much as I am claiming it now, to be fair to him (?) he has said that he wouldn't want any of mine which is good because I'm only just surviving on it!

Have you checked to see if you're entitled to claim any other benefits?

There will probably be a charging order put on the house. It is like an iou so when the house sells the debt is repaid!

Thank you, that makes sense about charging order. I have looked into benefits +++ and I am claiming everything that I can, being a single parent with a disability. Thank you for your insights. As I said, I am seeing the solicitor tomorrow so it is useful knowing the terminology!