Discussions on life after your bankruptcy discharge.

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ByLandrover
#472967 Myself and wife bought house as tenants-in-common Me(20%) & Wife(80%) back in 2007. Unfortunately though with financial issues in 2008 I had to go bankrupt and wife purchased my 20% beneficial Interest from Insolvency Officer for £1 as there was no equity.

1. With my name still on title deeds and still on mortgage, is it correct assumption that my wife owns 100% of the equity in the property (value minus mortgage)?

2. I may unfortunately be looking at tax debt post 2019 due to legislation being passed through Parliament. If that tax debt leaves me with no choice but to declare bankruptcy for a 2nd time, is it fair to state I have no beneficial interest in my property and so the Insolvency Officer can not claim against the property?

3. With no beneficial interest in property is it best I remove myself from mortgage or title deeds?

very much appreciate your advice, I am very stressed with potential 2019 tax issue.
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ByJaneClack
#472969 I have spoken to an Insolvency Practitioner who also acts as a Trustee in Bankruptcy for an expert reply to this:


He has answered the questions individually

1. With my name still on title deeds and still on mortgage, is it correct assumption that my wife owns 100% of the equity in the property (value minus mortgage)?

Difficult to say without checking the agreement that client signed. However, this may be the case.

2. I may unfortunately be looking at tax debt post 2019 due to legislation being passed through Parliament. If that tax debt leaves me with no choice but to declare bankruptcy for a 2nd time, is it fair to state I have no beneficial interest in my property and so the Insolvency Officer can not claim against the property?

Check the agreement that you signed – this should state whether you are entitled to any equity if property increases in value. If you are, then this will be taken into account by OR in subsequent bankruptcy. In addition, if you have contributed to the mortgage or paid for any home improvements or other contributions to the equity in the property, then the OR may still consider you to have beneficial interest in the property.

3. With no beneficial interest in property is it best I remove myself from mortgage or title deeds?

We can’t advise on this – you need to seek advice from a mortgage advisor. There are so many factors to consider when you remove your name from mortgage/title deeds.
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