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If My Husband Files For Bankruptcy Will We Lose Our Home Which Is In Joint Names?
Question:
My husband’s firm went into voluntary liquidation over three years ago. He had director’s guanrantees (which I knew nothing about) and they are chasing us for repayment. We own our own home (although still with a small mortgage attached) in joint names.
If my husband were to file for bankruptcy would we lose our home which is in joint names and still has a small amount left on mortgage?
Answer:
Since he has guaranteed the debts he is responsible for them if the company cannot meet the obligations.
If he were to file for bankruptcy, in bankruptcy all his assets would be viewed, including the property, and if it has equity in it, his portion of any equity could be taken to be paid into the bankruptcy.
As the house is in joint names, the court/Official Receiver may allow you to buy out your husband’s portion of any equity. If you cannot do this, they, meaning the Trustee, could have the property sold.
Thank you for letting me help you.
Jon
If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.
Source: If My Husband Files For Bankruptcy Will We Lose Our Home Which Is In Joint Names?