undervalue in bankrupcy

[syl123]

I was awarded the equity of the property when I got divorced 3 years ago my ex went bankrupt 9 months ago and the trustrees have come to me for his half off the property. The property was awarded by a judge my ex retained the business at the time. can you tell me the best avenue to take or what has happened in previous cases.

[themas]

There was a very recent Court case which decided that division of property in a divorce settlement did not bind the trustee in a subsequent bankruptcy so, in principle, the trustee is entitled to come after a share of your house. It may or may not be 50% - it depends on what the split of the beneficial ownership was before the divorce.

This can be a complex area & you need specialist advice. The solicitor who dealt with your divorce might be a good starting point, but you need someone - solicitor or insolvency practitioner - with experience & knowledge of the way in which jointly owned property is dealt with in bankruptcy cases.

[themas]

Should have added it is only 50% (or whatever) of the equity after deduction of the mortgage & any secured loans which they can come after. Also, you should be given the opportunity to buy out the trustee's interest (for example, by raising an additional mortgage). Whether this is practical depends on your income & the amount of money you would need to raise. You can also challenge the trustee's valuation of the property if you think it too high - get 2 or 3 valuations yourself.