UK Bankruptcy Law
Ask an UK Bankruptcy Law Question, Get an Answer ASAP!
hi, my husband has declared bankruptcy in dec 2012. he has hidden all his money as it transpired he had a double life. we have 2 properties joint names. how can i save the house i'm living in with my child of 4 yrs and my mum? will his name come off the mortgage? are the lenders and trustees different? the situation is more complicated but how can i save this place as i am not working at the moment?
Do you know where the money is? Can we have fine details including financial info please?
I believe he's sent all his money to Bangladesh. Can't be sure as this is a trait of these type of people.
So there is no way to trace this money? Do you have any proof that you could show to the trustee in bankruptcy?
What are the houses worth and how much mortgage is outstanding?
I'm assuming he's put it in his sister's account in Bangladesh.
The only proof is the historic events that have happened during my marriage, eg getting loans out. Just what has now transpired from this.
one is negative equity about £20k roughly - mortgage is £180,000
another equity about £32k roughly- mortgage is £300,000
I assume that these accounts cannot be traced,although if they can, give the details to the trustee in bankruptcy.
The house in negative equity is out of theequation because there is nothing in it for the steam bankruptcy.
The other one is more problematical and itappears that your husband's interest in that property, half of the equity, is£16,000.
It will be a case of negotiating with thetrustee in bankruptcy to purchase your husband's share of the property, whichis now vested in the trustee.
The mortgage outstanding is obviously what itis and the valuation is whatever it will come in at.
If you are not able to raise any money tonegotiate with the trustee, he can apply to court for an order for sale so thathe can get his hands on your husband is £16,000 equity.
If you have children living in the house ,the court would be more reluctant to order the sale but you would be stuck withthe charge against the house in respect of the bankruptcy and therefore itwould have to be paid off. If ever you came to sell a remortgage the property.
The less money, but is realised in a sale,the less chance there is that the trustee will be able to force a sale. Ofcourse, you would have to have enough income to continue to pay the £300,000mortgage and unless you can prove that on your own income you can afford to payit, the trustee in bankruptcy will want to know where that income is comingfrom. If you husband is able to contribute to the mortgage to assist you, thetrustee will want that money to pay creditors and therefore it may be that youhave no option but to sell the house.
The trustee in bankruptcy is an officerappointed by the court to deal with all your husband's financial affairs and toget as much money in as possible to pay his creditors.
The lender is completely different. Thelender is simply whichever bank or organisation money to which enabled you tobuy the house.
In this case, you say that you owe the lender£300,000 on one house and £180,000 on the other
Does that answer your question? Can I helpfurther?
The next part is really important for me:
Please don't forget to positively rate myanswer service (even if it was not what you wanted to hear) and I will followup any further points you raise for free. If you don't rate it positively, thenthe site keep your deposit and I get 0 for my time. If in ratings you feel thatyou expected more or it only helped a little, please ask me for further infobefore rating me negatively otherwise I don't get paid at all for my time andanswer. The thread remains open. Thanks
can his name be taken off the mortgage as he is bankrupt?
Your husband's interest is now vested in thetrustee in bankruptcy and the trustee in bankruptcy has to consent to that,along with the lender.
can u tell me if i can pay the trustee and i'm still on mortgage relief will the lender take his name off?
what does this mean though?
take him off the title deeds then what actually happens with the mortgage?
what will the lender do, they will want their arrears + full mortgage paid. but will they make us homeless as i can't pay the whole mortgage?
You are jointly and severally liable for the whole mortgage in any event. Him going bankrupt doesnt wipe the arrears off as it is a secured loan. All the arrears then fall onto your toe.
You didnt mention arrears before.
They will want arrrears plus full monthly mortgage. I think you probably have no option but to sell, sorry.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).