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So What Happens To The House In The Case Of Bankrputcy ?

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Our neighbours last year divorced, she moved into rented as did he and the house has stood empty for nearly 7 months now, he declared himself bankrupt.

So what happens to the house, not that I want it but I just wondered ??

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Our neighbours last year divorced, she moved into rented as did he and the house has stood empty for nearly 7 months now, he declared himself bankrupt.

So what happens to the house, not that I want it but I just wondered ??

If there is equity it is likely to be sold as an asset with the bankrupt's share going to the "Bankruptcy estate" administered by his Trustee. It is possible for a charge to be placed on the property rather than a sale being forced. The non bankrupt spouse would normally be entitled to 50% of the equity.

If there is no equity it will be offered to the joint owner (usually the non bankrupt spouse) for a nominal amount of £1 plus costs of £211.

If it is not dealt with by the 3rd anniversary of the bankruptcy ie Sold or charged then it reverts to the bankrupt.

If the wife and kids were still living there then their rights would outweigh the rights of the creditors for 1 year but this doesn't seem to be the case here.

Of course this could all be by the by if there is a pre-bankruptcy divorce order which gave the property to the non bankrupt spouse.

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If there is equity it is likely to be sold as an asset with the bankrupt's share going to the "Bankruptcy estate" administered by his Trustee. It is possible for a charge to be placed on the property rather than a sale being forced. The non bankrupt spouse would normally be entitled to 50% of the equity.

If there is no equity it will be offered to the joint owner (usually the non bankrupt spouse) for a nominal amount of £1 plus costs of £211.

If it is not dealt with by the 3rd anniversary of the bankruptcy ie Sold or charged then it reverts to the bankrupt.

If the wife and kids were still living there then their rights would outweigh the rights of the creditors for 1 year but this doesn't seem to be the case here.

Of course this could all be by the by if there is a pre-bankruptcy divorce order which gave the property to the non bankrupt spouse.

Is this a guess? Your a very clever frog if it is :)

TB

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Are you sure ?.

I would have thought that as a couple who are married they are jointly and severally liable for the debt therefore the house will be sold off, the creditors paid off and if anything is left it would go in equal shares to each partner.

As you say they are already divorced, then if that be the case then either one partner or the other would own the property.

I would guess that they have filed for divorce, the house remains in joint ownership and if the other party has gone bankrupt before the final decree absolute then they both are responsible for the debt.

I maybe wrong, enlighten me.

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Are you sure ?.

I would have thought that as a couple who are married they are jointly and severally liable for the debt therefore the house will be sold off, the creditors paid off and if anything is left it would go in equal shares to each partner.

As you say they are already divorced, then if that be the case then either one partner or the other would own the property.

I would guess that they have filed for divorce, the house remains in joint ownership and if the other party has gone bankrupt before the final decree absolute then they both are responsible for the debt.

I maybe wrong, enlighten me.

But surely if the debts solely in his name then it won't be...? Or if he's run up these debts sinc esplitting up?

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Just to clarify the house was in bboth names but the massive debts were his (btl it's Shaun Tilley of City FM converted lurker would know him), anyway my point is this house is just stood empty and nobody is maintaining it or indeed selling it, I just wondered how many more houses around the country are stood rotting whilst plenty on here would buy them if the price was right.

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Just to clarify the house was in bboth names but the massive debts were his (btl it's Shaun Tilley of City FM converted lurker would know him), anyway my point is this house is just stood empty and nobody is maintaining it or indeed selling it, I just wondered how many more houses around the country are stood rotting whilst plenty on here would buy them if the price was right.

He`s that twit done for beating up his wife isn`t he :angry: He used to compere before the match at E.F.C. until the news came out, <_< `orrible get. Not as bad as that 5hithouse Liverpool player Cisse who filled in his pregant wife the other day though. :angry:

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Not as bad as that 5hithouse Liverpool player Cisse who filled in his pregant wife the other day though. :angry:

Its all lies!!!!

He can't even HIT the back of the net, never mind his wife ;)

TB

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In the bankruptcy business ??

Yep 'fraid so. :o

Still business is booming!

Just to clarify the house was in bboth names but the massive debts were his (btl it's Shaun Tilley of City FM converted lurker would know him), anyway my point is this house is just stood empty and nobody is maintaining it or indeed selling it, I just wondered how many more houses around the country are stood rotting whilst plenty on here would buy them if the price was right.

If there's no equity then the Trustee in Bankruptcy won't push the sale.

That leaves it down to the mortgagees generally. The danger is that if the mortgagees take their sweet time in selling and it ends up going for less than the mortgage you might find that the mortgagee goes after the solvent borrower for the entirety of the debt. In these circumstances the wife may well end up bankrupt too.

Are you sure ?.

I would have thought that as a couple who are married they are jointly and severally liable for the debt therefore the house will be sold off, the creditors paid off and if anything is left it would go in equal shares to each partner.

As you say they are already divorced, then if that be the case then either one partner or the other would own the property.

I would guess that they have filed for divorce, the house remains in joint ownership and if the other party has gone bankrupt before the final decree absolute then they both are responsible for the debt.

I maybe wrong, enlighten me.

Husbands and wives are not jointly and severally liable for each others debts unless they take out a joint loan.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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