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Can you help? My partner is looking at bankruptcy to sort out her debts. We are not married but have a joint mortgage for one year now. The initial deposit (17k) for the house was paid by me and there is now equity of approx 27k. I have proof via bank statemnets that the deposit money was mine. My question.... When the OR look at her assetts will the full 27k equity be taken, or will half be taken? I have been advised by an IP that my initial 17k would be safe and that the OR would only take half of the remainder which would be approx 5k? Is this correct?

Hi johnnyf

Your deposit monies will be taken into account firstly from the equity calculation, and then the balance will be split between you equally. The advisor you have used is therefore quite correct.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

If your partner does go bankrupt you may need to purchase her beneficial interest in the property (50% of the current equity less your origninal deposit) to aviod the house being sold by the OR.

Best Regards
Oliver

Thomas Charles and Co Ltd.
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