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What Amount Of Debt Is Needed To Make Someone Bankrupt?
Question:
I am carrying debts that I am struggling to service.I have a partner who jointly owns our property. My partner has no debts. The mortgage is paid off.
What is the amount of a single debt that allows the third party to seek bankruptcy proceedings. i have the impression that it has to be above a certain amount. also if entering into bankruptcy what would the judge decide regards the house as my partner has no wish to sell. in other words how would they be able to realise any claim on the property.
Answer:
To our knowledge the amount of debt required for someone to make you bankrupt is £750 or more.
If someone was to make you bankrupt the property would be an issue as it would be viewed as an asset and your half of any property could be taken to be paid into a bankruptcy.
Also, in bankruptcy all your debts are placed, not just the one making you bankrupt.
It may be best if you owe someone or a bank to try and work this out as they may or may not make you bankrupt, which would be an issue for your property, but they could also try to obtain a CCJ and then a charging order against the property, which then secures the debt.
And while rare, once a charging order is in place the creditor could try to force the sale of the property.
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: What Amount Of Debt Is Needed To Make Someone Bankrupt?