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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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HiMy ex husband has recently informed me he is in serious

Resolved Question:

Hi
My ex husband has recently informed me he is in serious financial difficulty and been speaking to a debt firm regards this.
They have informed him to remove himself from our mortgage which in effect means i will have to remortgage my home and the banks will not allow me to have a new mortgage even though i have been paying the mortgage since we split up.
My question is will his debts have any impact on my home? and can i be forced to sell the property to pay his debts?
2nd is we have an agreement in place in that he is not entitled to 75% of any monies from the house sale and then the remaining 25% he is only allowed 40% of that .
I'm extremely worried and just need to know if anyone could force the sale of the house and put me and my daughter on the street
Kind Regards
Submitted: 3 years ago.
Category: Law
Expert:  Max Lowry replied 3 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. In answer to your first question, in short, his debts could have an impact on your home. On the basis the house is jointly owned, a creditor could obtain judgment against him and then register a charge against your property. The charge will only effect his share of the property, which will on the face of it, as long as the creditor is concerned, will effect his 50% of the proceeds of sale. Therefore, the creditor could attempt to force a sale of the house. However, because there is an agreement in place which defines how the proceeds of sale are to be split it will be pretty difficult for a creditor (once it and the Court gets to know about the agreement)to force a sale because most of the equity belongs to you. Your share in the proceeds of sale are therefore protected.
If your ex is seeing a debt firm it could mean that he's either seeking bankruptcy advice or advice about an Individual Voluntary Arrangement.
If he is made bankrupt, a trustee in bankruptcy will be interested in your ex's share in the property. The trustee will, again at first, believe that his share is 50%, however, your agreement will demonstrate that this is not the case. Any asset which your ex has an interest in will vest in his trustee. Therefore, as long as the trustee is convinced the agreement is valid he will ask you if you wish to purchase that interest - it would usually be possible to reach a negotiated settlement with the trustee. The interest will be valued taking into account the value of the property, the balance left on the mortgage and the % that belongs to your ex as per the agreement.
Keep paying the mortgage which will ensure the mortgage company is happy with you.
In answer to your last question, I believe it is possible an attempt could be made to force the sale of the house, but in reality I suspect it is unlikely.
I hope this helps. Please let me know if I can clarify anything.
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