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Can The Bank Make Us Sell Our House That Our Disabled Son Lives In?
Question:
Our company went into liquiation in oct 08. We had signed a guarantee for £50,000 overdraft previously. The bank now say that this document guaranteed all of the company debts to the bank but this was not our understanding. My disabled son lives in our specially adapted house.
Can the bank make us sell our house. We have about £180,000 equity in the house
Answer:
Unfortunately if you are made bankrupt the equity in the property could be taken for the bankruptcy.
If this is the only debt you have then technically you are not insolvent as the equity in the property exceeds the level of debt you have; however people have still been made bankrupt even in your situation.
Can you come to terms on a repayment plan for the debt, that is always a way to avoid bankruptcy or having them look at charges against the property.
If you have other debts you maybe able to look at a debt management plan, an IVA may not be an option as you may have more equity than all your debts.
If it came down to liquidating the property in bankruptcy the Official Receiver/Trustee would take into consideration your son’s needs and may allow additional time in the sale or allow a friend or family member to buy out a portion of the equity to pay into the bankruptcy.
But it is best to try and avoid this through whatever means.
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: Can The Bank Make Us Sell Our House That Our Disabled Son Lives In?