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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3695
Experience:  Solicitors 2 years plus PQE
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We have been told that if my husband declares himself bankrupt

Resolved Question:

Hi, We have been told that if my husband declares himself bankrupt with his business that we will lose our home as it has equity in it even though the business isn't tied to the house. How can we resolve this?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. How much equity is in the house? Are you joint owners of it? Kind regards AJ
Customer: replied 2 years ago.
There is about 40,000 and it is joint with myself. he is a partner in the business.
Expert:  Alex J. replied 2 years ago.
Thank you. What you could do, as long as you can service the mortgage by yourself until your husband is discharged from bankruptcy, is look to buy your husband out. The only way to do this is agree this with his trustee in bankruptcy. You may not have to pay £40k but you will have to negotiate figure that would represent a the value of sale of a bankrupts property (normally this is less than open market value). Also you would only have to buy out his share of the equity assuming you own the property 50/50. Is your going to petition for his own bankruptcy?
Customer: replied 2 years ago.
If his business partner files for bankruptcy does he have to or can he carry on with the shop unaffected?
Expert:  Alex J. replied 2 years ago.
Hi, Thank you. That depends, is your husband personally liable for the business debts? Bankruptcy is really only relative to personal liability. Your husband does not have to go bankrupt if he does not actually have any creditors and is not insolvent.
Customer: replied 2 years ago.
My husband and his partner are joint on everything in the shop, his partner want to be out and free from debt but my husband doesn't want this as it would affect our house.
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
If it is a partnership, your husband can carry on trading as long as the exiting partner is happy for this. The exiting partner would have to agree for your husband to take over the assets, and your husband would have to release him/indemnify him from the partnership debts.
Kind regards
AJ
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