Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By lofty
#6672 Can anyone help.....about 15 years ago my wife and I went our seperate ways although we did not divorce. During our time apart my wife bought a property in her own name. Her's is the only name that has ever appeared on the land title. We have since got back to-gether again. My name has never appeared on the land title. Will this property be deemed as an asset of mine in bankruptcy proceedings? or will ot be exempt?
ByDavidc
#6674
lofty wrote:Can anyone help.....about 15 years ago my wife and I went our seperate ways although we did not divorce. During our time apart my wife bought a property in her own name. Her's is the only name that has ever appeared on the land title. We have since got back to-gether again. My name has never appeared on the land title. Will this property be deemed as an asset of mine in bankruptcy proceedings? or will ot be exempt?

Have you contributed to it, or did the sale of a property that you may have had a beneficial interest in contribute to it's purchase. The OR will look back 7 years for any such property you may have had a share in.
David
By lofty
#6675 hi David.thanx for the reply ...................the brief facts are I have never made any payment to-wards the mortgage, ever and made no financial contribution to the original purchase costs. As stated the property was purchased 1992 and only my wife's named has appeared on the land title.
ByDavidc
#6676
lofty wrote:hi David.thanx for the reply ...................the brief facts are I have never made any payment to-wards the mortgage, ever and made no financial contribution to the original purchase costs. As stated the property was purchased 1992 and only my wife's named has appeared on the land title.


Who's name appears on the deeds will not be the issue decided by the OR. If you did lived together in this property and you contributed financially to the household you would have, as such become entitled to a beneficial interest in the property.
We had a poster recently who left her husband years ago and was told at the time that her interest wasn't worth tuppence...despite not living with her ex she now has around £65,000 worth of equity she did not know she had, so doesn't need to go bankrupt now.
David
By lofty
#6677 Thanks for that David.
User avatar
By JaneClack
#6682 and look at this information recently received from an IP:

(It makes no difference what anyone's sexual preference or relationship is)
Equitable interest is accrued by the non title person contributing to the mortgage or household budget or doing something that will give them an interest such as bringing up what in effect are the children of the couple
Its all down to a burden of proof before a court at the end of the day
If for arguments sake somoene stayed at home to look after the kids and his partner worked and paid all the bills then he would have an interest
If both sides work and the property owner pays the mortgage direct from his account and then the other bills are split equally then our chap probably doesnt have an interest
The interest doesnt have to be 50:50, it can be in any ratio
The interest would only accrue from the date the interest started.
It is not a simple area
By lofty
#6706 thanks for that..................one further question................what is my position if I wanted to re-mortgage to get rid of debt............and my name has never appeared on the land title?


Also (sorry to go on)............if I filed for insolvency, would I end up paying any repayment order that might be made and also would If it was decided I had a beneficial interest would I also lose that as well as having to pay the payment order...i.e. is it one or both?
ByDavidc
#6708
lofty wrote:thanks for that..................one further question................what is my position if I wanted to re-mortgage to get rid of debt............and my name has never appeared on the land title?


Also (sorry to go on)............if I filed for insolvency, would I end up paying any repayment order that might be made and also would If it was decided I had a beneficial interest would I also lose that as well as having to pay the payment order...i.e. is it one or both?


If you petition for bankrupcy and you are deemed to have a beneficial interest in the property. That interest will be realised one way or another by the Official Reciever, and after first of covering the cost involved of administering your bankruptcy, around £5000 will be distributed between your creditors at a rate in the pound. If this is less than 100% and there is a shortfall Your bankrupcy will stand and an income payment arrangement or if you do not cooperate an order imposed by the court will be considered. It matters not whether the shortfall is £10,000 or £100,000.
The figure is based solely on your surplus income after what are considered allowable expences of this you will have to pay between 40-60%. the higher the surplus the higher the percentage is likely to be. You will have to pay this for 3 years and have a legal obligation to inform the OR within 21 days of any change in circumstances. pay rises, bonus payments, extra pay for overtime windfall reciepts ect. Of this extra the OR may take a percentage or all of it.
It is for this reason that good advice would be to minimise your income for the 12 months or less which is likely to be the period before your discharge. as if no order is made before this date then none can be made. Many people take a year out to improve their qualification or as I did take tempory agency work keeping my income at a level only to pay my necessary bills with no surplus.
David
Last edited by Davidc on Mon May 16, 2005 7:01 pm, edited 1 time in total.
By lofty
#6710 Many thanks
User avatar
By JaneClack
#6711 and that, said John, is that...

Beneficial interest and income payment arrangement if you are found to have the first and a surplus for the second.

Remortgaging is an option and by talking about that it does seem that you have a beneficial interest.