Thanks for your question.
If your wife does go bankrupt then your wife's half of the house is at risk, your interest in the house or the proceeds of sale is protected. The official receiver/trustee in bankruptcy may have to sell your wife's interest in the property to satisfy her creditors.
It is not a one way process and you should make your interest known to the OR/trustee. It is possible to put off the sale of the property until the expiry of the first year of bankruptcy so that you can make other arrangements.
Once your wife is ordered bankrupt she will remain registered on the legal title to the property but her beneficial interest in it passes to the OR/trustee who effectively then controls it.
If you are able to buy your wife's interest from the OR/trustee then you should speak to the OR/trustee about doing this. You would need to demonstrate sufficient income in your sole name to receive a mortgage offer in your sole name.
If you wife does not go bankrupt but defaults on her loans/credit cards then the creditor may apply for obtain judgement on the debt and then apply for a charging order against the property (again,your interest is protected). This could then allow them to apply for an order for sale but you would be able to make representation as to why the property should not be sold.
If she does go bankrupt then you've got to be proactive with the OR/trustee on whether the house will be sole, whether you can postpone it for the first year of bankruptcy or whether you are to buy the interest from them. Make some enquiries about whether you are eligible to receive a mortgage offer in your sole name if your wife does decide to go bankrupt.
Sorry it could not be better news. It's a very difficult situation and you have my sympathies.
If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.
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).