can they make you sell your home if you file bankrupcy?

[Kristal53]

Theoretical question but one that brings up all sorts of conflicting answers when googled. If you own your own home (no mortgage) and decide to file for bankrupcy can they make you sell it to pay off your debts?

[what..the?]

Yes they will do, unless they can get the money to pay your creditors from somewhere else.

[ubasses]

Yes. The trustee appointed can sell your home if necessary to pay off your debts. If in joint names they would have to apply either acourt order to sell or place a registration at land registry so they would be advised of any dealing with the property and if you sell your share would go to pay off your debts. Best if you look at the yougov site which should explain it, I have been retired seven years so may be a bit out of date in the world of finance.

[THECORBYLOON]

This is what the Insolvency Service says http://webarchive.nat...eaflets/home/home.htm

[Kristal53]

Interesting - why do so many people think filing for bankrupcy is the 'best ' solution? and why do we hear anecdotes of business men going bankrupt, only to resurface under a new business name and retaining their family home? I always thought it was because they put their assets in their partners ( wife or husbands) name so the family home was secure? I'm not talking 'limited' companies here I know the rules concerning those.

[bednobs]

PROBABLY BECAUSE FOR MANY PEOPLE, BANKRUPTCY is

[FredPuli43]

I think you may be confusing the business with the individual, Kristal. Mahy businessmen have businesses in the form of companies. The company will be run by them into insolvency, running up enormous debts with suppliers of stock. If they are clever at it, they then approach the liquidator and buy the stock at a knockdown price . They then reopen business under a new company ;that sells the stock,and the whole process starts again. Certain businessmen in the furniture trade were adept at this practice. They do not go bankrupt but their companies, as it were, do i.e. are wound up as insolvent. Bankrupts are strictly controlled and not allowed to run companies.
Going bankrupt means that someone else organizes and takes over the bankrupt's assets. That person may negotiate a settlement of debts on advantageous terms. To that extent, the bankrupt may be better off, but it's best to 'bankrupt' a company not yourself, for then the debts are the company's .

[Kristal53]

bednobs -why are you so incredibly rude? I asked a civil question there is no need to shout. IF you are going to make capital letter statements then it would usefull to put some argument behind it.

[Kristal53]

hi Fred. good answer - I always thought if a Company went Bankrupt then the directors automatically went bankrupt too -your explaination now makes it clearer on how some people I know seem to bounce from one business to another, refurbing thier homes and buying huge 4x4 in the process, with no chance of those homes or assets being taken in lieu of the massive debts they hike up.

[bednobs]

whoops, i meant to say sorry it posted too soon just after i posted it but posts were taking so long to post i got bored and went elsewhere! Anyway, what i meant to post was, for many people bankruptcy is the best thing - that's why a lot of people think it.

[bednobs]

blimey, there are a lot of "posts" in that response :)

[tonywiltshire]

In order to make themselves bankrupt the person must petition the court on the grounds they are unable to pay their debts they must also produce a statement of affairs. As has been made clear by many answers if property is owned solely or jointly that interest automatically becomes the property of the trustee on their appointment, they will take action by registering either a notice or restriction at the land registry and if the property is solely owned by the bankrupt person the legal title vests in the trustee which can lead to the property being sold, if their interest in the property is held jointly only their share is held by the trustee. I do not think for an individual to become bankrupt is an easy option, it should be the last resort there are many disadvantages:
They will lose any assets that can be sold.
They will lose their interest in a property.
Other than a very small amount, they are unable to obtain credit.
Their financial affairs will be scrutinised and criminal action may be taken if there are irregularities.
Whilst undercharged they are unable to become a company director.
They may be barred from public office or some professions.
Their names are published.
They may find there are bankruptcy restriction orders or undertaking applied
There is a potential risk to any future assets or inheritance.

This list is not exhaustive and anyone considering bankruptcy should seek advice.

[lcg]

in short...if you own your own home/have a mortgage, car or other significant asset, bankruptcy is not the best option. if you rent and have naff all, then it is. simples - the official receiver will take anything they can flog to pay a creditor.