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What happens to your house when a co-owner is made bankrupt?

View profile for Andrew Leakey
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The recession hit hard in 2009 and whilst we are told that we are now officially out of the darkest days the Insolvency Service reports more doom and gloom on the horizon.
 
Insolvency Service figures show a 26% rise in insolvency in 2009 up to 135,000 or 367 people per day. The figures show 75,000 people were declared bankrupt in 2009 with another 60,000 entering into Individual Voluntary arrangements (IVAs).
 
Figures also suggest that many more suffer in silence with UK residents living under a mountainous £1.5 trillion in debt.
 
Bankruptcy impacts on people in many different ways and Stephensons can advise you in relation to challenging bankruptcy itself or dealing with debts.
 
However, one of the major issues that does not normally come to mind when considering bankruptcy is the effect that it can have on those around you.
 
When you are made bankrupt, a trustee in bankruptcy is appointed whose main task is to realise the assets in your ‘estate’ for the benefit of your creditors. Where you own a property jointly with someone else, the trustee must pursue a claim for a sale of the property through the Courts. Stephensons have specialist solicitors who can advise your co-owner of their rights in defending the application and seek to negotiate a settlement with the trustee in many circumstances.
 
If you are considering bankruptcy or have been made bankrupt and a trustee in bankruptcy is pursuing the sale of your property then Stephensons can help you.

 

By consumer solicitor, Gareth Jones

 

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