I have just been made bankrupt but i co-own a house which is the family home – will my house be sold?
Everything will depend on whether there is equity in the house. If there is no equity, the Official Receiver will register an interest on the Land Registry and the property will not be affected provided you maintain mortgage payments. If there is equity, it is likely the case will be forwarded to a private Insolvency Practitioner who will act as your Trustee in bankruptcy (thus taking the place of the Official Receiver).
You will be given options to ‘buy the Trustee’s interest’ in the property, failing which he would have two options 1) he could eventually order the sale of the property or 2) he might simply place a charge against the property, to be redeemed when the house sells – the latter is the more likely if there is only a small amount of equity in the proprty.
But don’t lose heart, whatever happens you will be given up to a year to satisfy all the options – you don’t simply get thrown out on the sidewalk like some people suppose!
Feel free to call us with any further questions or for bankruptcy help on 01425 600129 or 07479 739139.