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Bankruptcy and equity in marital home?

Posted by My Future 
Bankruptcy and equity in marital home?
March 02, 2021 03:01PM
Hi, I split from my wife in May 2015 and moved out of the marital home at that time and into rented accommodation.

There are no children living in the marital home and my wife lives there with her new partner.

Just over a year later in June 2016 I filed for bankruptcy due to matters regarding my grown up children.

I have not spoken or seen my wife since moving out of the marital home, but just in the last few weeks had contact with her through my daughter and our divorce was mentioned. My wife as asked me to sign the marital home over to her and I take nothing as she's informing me that the official receivers requested that she pay my part of the equity, otherwise the house would be sold.

I asked her for the proof of this because I was unaware this had happened and she has forwarded to me all the relevant paperwork and this is a breakdown of the figures:-

She had the house valued at £155.000
Outstanding mortgage is £129,380.25
Positive equity £25,619.75

Receivers requested from her £3897.48
Her solicitors Fees £500.00

So my question is that from the above figures that there is still £25,619.75 equity in the property, is she right to request I sign it over or am I having been made bankrupt and her paying the receivers, still able to claim a percentage of the equity and if so would that be 50/50 split?

Regards



Edited 1 time(s). Last edit at 03/02/2021 03:10PM by My Future.
Re: Bankruptcy and equity in marital home?
March 04, 2021 10:39AM
It is impossible to answer this without seeing the relevant paperwork in respect of the house and the bankruptcy. You were made bankrupt five years ago. Bankruptcy doesn't last forever. Also, it rather depends how much you were made bankrupt for. If, say, it was for a debt of £3,897 and your share of the equity is £12,000 or so then the claim of the creditors doesn't exhaust your interest in the house. And then there is the question of whether your wife has been repaying the capital of the mortgage since you left (as opposed to the interest). You really need to sit down with someone to talk this through properly and you should let them have copies of all relevant paperwork in advance so that any discussion is properly productive.
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