Seperation and Mortgage

[rachbod22]

Hi,

My partner has a mortgage with his ex-girlfriend - who still lives in the home. She has recently got sacked from her job and is now behind on mortgage payments. She is threatening to declare bankruptcy, leaving my partner to sort out the payments, which he cannot afford to do. Both of their names are on the mortgage.

Can anyone tell me what our options are?

[themas]

If she becomes bankrupt the home will (if there is any equity in it) be taken by the Official Receiver, sold and her share of the equity will go towards paying her creditors. Your partner should then get his share of the equity. Alternatively, the OR will offer to let a third party buy out her equity interest - but if your partner is not able to afford the present mortgage payments he would presumably not be able to raise the money to do this.

So there's not much point in your partner trying to keep the moertgage up to date.

Go to the Insolvency Service website and you can download booklets on the effects of bankruptcy, including one about the home.

[themas]

mdoo - The Insolvency Service can and do take and sell the homes of people who are bankrupt if it is necessary to do so, because the home is an asset of the bankrupt which they may need to realise in order to pay off (or part pay off) the creditors.