Bankruptcy and the house

[FassbendersWife]

I have a quick question about bankruptcy. My ex-husband has large debts. We are separated and I am in the family home with the kids. If he were to go bankrupt, could the Trustees take the debts out of the equity? I could then pay the increased mortgage. Or does the house have to be sold? Many thanks.

The trustee will gather in the assets, take their fees and then pay creditors with the rest.

They will just want his share of the equity. If you can raise it without selling that’s great. Do negotiate with them on the amount though, you’re making their lives easier by essentially offering to pay up!

The new mortgage and house would of course have to transfer to your sole name as you’d be buying out his interest.

Thank you so much for your help :) That makes sense.