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A good starting point for bankruptcy questions
By Banquo21
I am thinking of declaring myself bankrupt. I have £30,000 in unsecured debt. All in my name. I live with my partner and have done for 1 and a half years. The mortgage on the house is in her name only and comes out of her account. She has lived there for 12 years and bought her ex husband out around 3 years ago. I do pay toward household costs. But that is all. She wants to keep our finances separate and who can blame her! We don't have any kind of credit, loans etc in joint names. Should my wife see a solicitor to see where she stands? It seems like the opposite of divorce as I am NOT claiming interest in the house.

I am worried about the Official Receiver thinking I have "beneficial interest" in the home. I want to make a clean start as we are expecting a baby this year, there is already my stepdaughter who is 10 who lives with us. It seems doing research into this that it is up to the OR's discretion whether or not we have beneficial interest. Obviously I'd like to know one way or the other before declaring myself bankrupt.

Any help or advice would be appreciated.
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By Hayden
Hi there Banquo21. Welcome

The issue of beneficial interest can be an problem because ultimately it is a subjective decision by the OR. However in your situation I do not think you have any reason to worry.

Given your partner bought the property herself before you moved in and she pays the mortgage (I assume it is in her name) and you have never paid anything directly towards it means that you almost certainly could not be seen as having any interest. The fact that you are living together and are expecting a baby makes no difference. Even if you were married you still would not be seen as having any beneficial interest at this point so I do not think you will have any issues. In a sense you are basically living in the same way as a lodger would be.

Make sure when you complete your bankruptcy application form that you state you do not own any property.
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By Geraldine
Hello Banquo21

I agree with Hayden. I do not think you have anything to worry about. If your partner paid for the property herself and you moved in 18 months later and you are not on the mortgage then I am sure the OR will not consider that you have any beneficial interest.