Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By Wife
#62197 Hi,
My husband has been made bankrupt. The house was bought by me, with no mortgage, in joint names - as I love him and he wanted to obtain a mortgage to use in business. We agreed that the house ownership would never be his. The OR is insisting that my husband has 50% equity and wants the house sold to realise this.
Any answers, experience, or court cases known to help.
Thanks.
User avatar
By Ransid
#62206 Jointly owned property will be assumed to be held in equal shares unless it can be proved otherwise - if your proof is just a discussion between you then you might be in for a tough fight.

This is really a lawyer issue - can't see a shortcut i'm afraid.

however....

Not quite sure from your post whether or not your OH took a business loan/mortgage or not - if he did, and it's for his business alone, then the "doctrine of exoneration" applies and the loan must come from his equity first (if he has any) there is case law on this called re Pittortou (i think)

Again this must be a lawyer issue.

If it's 100% you win or 50% you lose then it must be worth getting formal legal advice, but best hunt around for lawyers well versed in insolvency, waste of money otherwise in my view.
By S&M
#62223 Hi Wife

I agree with Ransid in that you need advice from a solicitor well versed in Insolvency law. If there is a lot of equity to protect pay for the best you can get as it will be worth it.

What area do you live in as I may be able to point you in the right direction via a PM.

Before seeing the solicitor collect as much documentation as possible about the original purchase, if possible showing the source of the funds for the purchase. Any documentation you can provide now will keep the initial costs down.

If you are able to obtain the original purchase file from the conveyancing solicitors who acted for you that may be very useful. (Working on the "other side" that is one of the first places I would look as it will often reveal the intentions of the perties at the time the property was purchased). If you have paid the solicitors they should have no problem in releasing the file unless it has been destroyed.

Equity of exoneration may apply ie Pittortou. Alternatively what was the intentions of the parties when you purchased the property. Did you "gift" 50% of the property to your husband or was it always intended that although it was in joint names the property was actually yours.

Seek advice soon to avoid the Trustee issuing proceedings as this will only lead to costs escalating.

Good Luck

S&M
By keepchinup
#62256 You said the OR wants a sale. Don't forget the OR will only expect a sale in order to realise the 50% if there is no alternative.

If you can come up with that kind of cash the OR will not actually be expecting a sale. It's the equity he wants.

I know this an obvious statement but it sometimes gets lost in all the detail.

The very best of luck to you.
By Wife
#62268 Thanks for all replies.

Hi S&M,
I note your London, I am in the South East, no problem travelling. I appreciate your information on obtaining a lawyer with specific insolvency experience, didn't realise they so specialised. Could you point me in the direction of a specialist lawyer.
Many thanks.
Wife

S&M wrote:Hi Wife

I agree with Ransid in that you need advice from a solicitor well versed in Insolvency law. If there is a lot of equity to protect pay for the best you can get as it will be worth it.

What area do you live in as I may be able to point you in the right direction via a PM.

Before seeing the solicitor collect as much documentation as possible about the original purchase, if possible showing the source of the funds for the purchase. Any documentation you can provide now will keep the initial costs down.

If you are able to obtain the original purchase file from the conveyancing solicitors who acted for you that may be very useful. (Working on the "other side" that is one of the first places I would look as it will often reveal the intentions of the perties at the time the property was purchased). If you have paid the solicitors they should have no problem in releasing the file unless it has been destroyed.

Equity of exoneration may apply ie Pittortou. Alternatively what was the intentions of the parties when you purchased the property. Did you "gift" 50% of the property to your husband or was it always intended that although it was in joint names the property was actually yours.

Seek advice soon to avoid the Trustee issuing proceedings as this will only lead to costs escalating.

Good Luck

S&M
User avatar
By Ransid
#62297 A couple of other things - don't know when your OH went banktrupt but you are protected for 12 months from then anyway, during which time the trustee/OR can't enforce a sale, so if there is still time don't feel this has to be a rushed approach, although obviously you should start down this road ASAP to avoid it becoming so later.

Also the trustee is likely to be able to argue that your OH has acquired "some" beneficial interest in the house, albeit maybe not as much as he's after. It could be that a "nuisance" offer to make him go away would be advised when you take your advice.

Hope it works out for you
By S&M
#62553 Wife

Rather than post names of lawyers on the site I will PM you.

S&M