Bankrupt info needed

GJ02

GJ02

GJ02

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My sister-in-law is in bit of a mess, her ex boyfriend has declared himself bankrupt in June.
Before he did this, he surrendered their house (which had a mortgage in joint names), back to the mortgage company for them to sell.
In doing this they accepted that if there was a shortfall between what was still owed and how much the house was sold for they would have to pay the remainder outstanding. So, before all this happened they both lived abroad and had this house still in the uk. He left her came back to uk and then this happened. Problem is he never explained the situation to her and she didn't realise she's liable to pay the debt. Question is, when you declare bankruptcy how do you they claim the debt from you? The fear is when she comes home she will be liable to pay the whole of the outstanding debt because he's declared himself bankrupt and can't pay anything towards the outstanding debt? Anyone got experience on this?
 
afaik he is still liable to pay the debt even though he is bankrupt, when you're bankrupt you don't get off with paying nothing ,best get her to speak to the CAB
 
hes done her over, because he is bankrupt he is not liable for the shortfall as the debt is part of a pre-bankruptcy mortgage, as it is joint she becomes liable for any debts as he is now bankrupt, it will all go through his official receiver and basically he will pay very little if any back, the mortgage company will now chase her for the debt as is their right in joint debts if one party becomes insolvent, she needs to go get proper advice asap!
 
There is a difference in a joint mortgage and a co-owned mortgage.
If I were her I would take some advice, in fact, surprised she didn't prior to surrendering the house.
One would leave her liable, and the other wouldn't.

Good luck to her trying to sort that mess out.
 
GJ02 said:
My sister-in-law is in bit of a mess, her ex boyfriend has declared himself bankrupt in June.
Before he did this, he surrendered their house (which had a mortgage in joint names), back to the mortgage company for them to sell.
In doing this they accepted that if there was a shortfall between what was still owed and how much the house was sold for they would have to pay the remainder outstanding. So, before all this happened they both lived abroad and had this house still in the uk. He left her came back to uk and then this happened. Problem is he never explained the situation to her and she didn't realise she's liable to pay the debt. Question is, when you declare bankruptcy how do you they claim the debt from you? The fear is when she comes home she will be liable to pay the whole of the outstanding debt because he's declared himself bankrupt and can't pay anything towards the outstanding debt? Anyone got experience on this?
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Appreciate the logic of getting a first impression here, but she needs proper legal advice. Now.
 
Get her to see a solicitor, it's pointless asking for serious advice here - some of it may be good advice but until her case has been properly examined its impossible to tell. I personally wouldn't bother with the CAB, you get what you pay for...
 
I have been in the same situation and ended up having the debt all in my name, this was about 20 years ago and I'm still paying it back now :(

I even had to pay back a loan that was in her name but I was a guarantor, when we split up she took the car on the agreement that she payed the loan ...in her name but as soon as she became bankrupt every thing passed on to me.

Must admit the bank and building society were very understanding and helped as much as they could but Ive still had to pay it all back my self.
 
I can't give any advice, but what an absolute scumbag he sounds like. Hope your sister- in- law gets it sorted.
 
How can it be legal for him to surrender the house without her knowledge if it's under both their names? Surely, her signature is needed somewhere at the very least.
 
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