I am going bankrupt due to owing in excess of £150,000 for loans I guaranteed for a company. The company has ceased trading and entered into Administration, but I am liable for the loans as guarantor.

My wife and I own a property together that is valued at £200,000, but we still have a mortgage balance of £100,000. So on paper it appears we have £100,000 equity. My concern is when I go bankrupt will we lose the house? My wife is not on any of the loans, but we own the property together on the land registry.

Any advice is helpful.




I understand your concerns and you may have some other options besides bankruptcy.

You could look into a Debt Management Plan or perhaps even an IVA. In an IVA you would be required to release some equity you have in the property after five (5) years of payments, but you can keep the property.

If you were to go bankrupt, only your portion of any equity could be take for the bankruptcy, so £50,000. The Official Receiver in your bankruptcy could allow your wife to buy-out your share of equity to be paid into the bankruptcy. The issue with this she would need to have the money to do this, or remortgage the property if possible.

I hope this helps.



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