What happens to jointly owned BTL after I declare bankruptcy?

breakonthru123

Registered User
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33
Hi all,

I own a BTL with a friend - 50/50. What will happen to the property after i declare bankruptcy?

Will the OA most likely sell 'his half' to my friend - or just let the loan wind down over the next 15 years or so?

Cheers!
 
If there is equity in it
The OA will collect 50% of the rent and take steps to sell his 50% share. He would give your friend an opportunity to buy the share.

If there is no equity
The OA will collect 50% of the rent until the bank appoints a Receiver.

Jim Stafford
 
If there is equity in it
The OA will collect 50% of the rent and take steps to sell his 50% share. He would give your friend an opportunity to buy the share.

If there is no equity
The OA will collect 50% of the rent until the bank appoints a Receiver.

Jim Stafford
Will the OA chip in for half the expenses?
 
Sorry Jim,I meant does the OA claim 50% of the net rent every month or the gross?
(ie is the friend going to be stuck with all the management fees,insurance,and maintenance out of her half)
 
In the cases that I have seen he has claimed 50% of the rent and ignored expenses, apart from Local Property Tax. However, with the volume of cases that he has, he has now started the process of "disclaiming" his interest in negative equity properties if the Bank do not appoint a Receiver within 30 days of the OA requesting the bank to appoint a Receiver. (The Bankruptcy Act was recently amended to allow the OA to disclaim.)



Jim Stafford
 
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