Bankruptcy Advice - What about my home?

Bankruptcy Advice

When you are made bankrupt, all assets that belong to you come under the control of the Trustee whose duty is to make as much money as they can from these to start to pay back your creditors. These assets include your home.

If you own your home, solely or jointly, your interest in the property will form part of your estate, which will be dealt with by your Trustee. If no alternative solution can be found then your property may be sold to help pay off your debts.

To avoid this you may be in a position for your spouse, partner, relative or friend to buy out your interest in the property. They should make an offer to the Trustee who will consider whether it is fair and reasonable before making a decision.

If you have children or other dependants living in your home it is often possible for the sale to be postponed until the end of the first year of bankruptcy to allow you to find alternative accommodation.

If the Trustee is unable to sell the property immediately they will usually obtain a charge, which protects their interest. You cannot then sell the property without the Trustee being made aware. If you do so they will claim the interest that is covered by the charge which includes any increase in the value of the property.

If you rent your home the Trustee will have no interest in the property and therefore he cannot sell this. The Trustee will usually tell your landlord that you are bankrupt however and if you do not comply with the terms of your tenancy then the landlord may take action against you which may result in your losing your right to remain there.

ClearDebt IVA Help Online Application Form Apply Now

ClearDebt is the only IVA company to offer full online IVA applications
Five simple sections to complete a full IVA application
No time consuming filling debt forms by hand
Login when it suits you and complete at your own pace
Personal, private, confidential and secure
You stay in control

Latest news about UK debt

Nationwide welcomes credit card praise
(Fri, 15 Feb 2008) Nationwide Building Society has welcomed the news that it has been named as the best credit card provider in the UK at this year’s Card Awards. With millions of consumers struggling with high levels of debt management, the building society has suggested that the transparency and the quality of the information it provides has played an ... more >>
Brits ‘being hit’ by balance transfer hikes
(Fri, 15 Feb 2008) Many British consumers are facing increased pressure on their personal finances as a result of rising balance transfer fees, according to a recent report. Moneyfacts.co.uk has claimed that since people with credit card debt first started being charged for transferring their balances four years ago, the associated costs have become increasingly difficult to pay off. The price ... more >>
Report highlights UK’s ‘credit culture’
(Thu, 14 Feb 2008) UK consumers are far more comfortable about paying for goods and services using credit card debt than any of their European cousins, according to a new report. Research by Datamonitor has found that at the end of 2006 the average British adult had at least twice as many credit cards as ordinary consumers from any other ... more >>
Statto declared bankrupt
(Thu, 14 Feb 2008) The man known to TV sports fans as ‘Statto’ has been declared bankrupt by Manchester county court, it has been revealed. It is not known exactly how betting expert Statto, real name Angus Loughran, found himself in such serious debt management difficulty but it is believed to be related to unpaid council taxes. The Insolvency Service has ... more >>
Credit card users warned over order of payments
(Thu, 14 Feb 2008) Credit card users have been warned that many of the foremost providers in the UK do not clear the most expensive forms of debt first. Research by Moneysupermarket.com has found that the order of payment patterns used by financial service firms could leave people with credit card debts in the red for longer than necessary. In fact, ... more >>

Subscribe in a reader

IVA FAQs

Tired of debt jargon? Search our glossary of debt terms:

ClearDebt Analyser

The ClearDebt Analyser is a unique free tool which shows you your best way out of debt - whether an IVA, debt management, debt consolidation or bankruptcy. Immediate results on screen help you say goodbye to debt worries for good!

Debt Management Comparison

The Debt Management comparison tool compares the likely impact of an IVA or a debt management plan on your debt and your pocket. Once you have input your real figures you’ll get an instant comparison for free. You might be surprised by the result!