Family home - 3 named on mortgage - one bankrupt

N

NE29

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Hi, I was wondering if in a case when a mortgage is in 3 names and one person declares bankrupt, what happens to the house and the other 2 people?
 
They will be given the opportunity to buy out the share of the bankrupt party. If they can't/won't do that it is likely that the property will ultimately need to be sold. This is likely to be a Bank rather than an Official Assignee decision as the bank will hold the security of the property and will likely exclude this and their debt from the bankruptcy (assuming that there is no positive equity in the property).
 
Just to clarify/correct my previous post. If the house/mortgage is in the name of the 3 parties and there is no positive equity, then to a large extent the bankruptcy of 1 of the parties is irrelevent to the mortgage. All 3 parties are jointly/severally liable for the mortgage and if the remaining 2 parties can meet the mortgage payments then the Bank will be satisfied. The house/mortgage can be excluded from the bankruptcy if there is no equity in the property.
 
Thanks for your help. Yes the house is in negative equity and the arrears are substantial.
 
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