Hi MaterialGirl,

Until the final payment has been made towards the equity agreement and the Trustee has filed a Form 15 with the Registers of Scotland, the bankrupt joint owner’s interest in the home remains vested in the Trustee. The Trustee would be entitled to the full share of the bankrupt owner’s equity (and it would need to be the Trustee who signs the disposition etc…).

As for a new joint mortgage, I cannot offer specific advise on this. Assuming the individual has been discharged (usually at the one year anniversary), there may be lenders who will offer mortgage products, but the pool of available lenders will be much smaller until the bankruptcy has finished and fallen off the credit file.

Posted by: @materialgirl

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Has anyone sold a house while still in bankruptcy in Scotland where there are two joint owners, but only one was bankrupt? Over 4 years into the bankruptcy. 

I’m looking for anyone with actual experience of this situation in Scotland.

We currently own our home jointly. One joint owner went bankrupt (sequestration) and, at the time of the bankruptcy, the trustee calculated an amount relating to their share of the equity in the house. An arrangement was made to pay this amount rather than the house being sold.

There is still a balance being paid towards that equity.

The other joint owner has never been bankrupt and has a clean credit history.

We are now considering selling our current house and buying another property with a new joint mortgage.

Has anyone actually been through this situation?

 

I’m particularly interested in what happened with the sale proceeds, the outstanding equity amount, and getting a new mortgage.

Was the outstanding amount simply settled from the sale proceeds, allowing the property to be sold and a new mortgage to be arranged?

I’d really appreciate hearing from anyone who has actually experienced this in Scotland, rather than general advice about bankruptcy and if you did can you say which financial broker you used for this .

thanks in advance.