Check how bankruptcy affects your home

Summary

You might be able to stop your home from being sold if someone agrees to buy your share of it. It's important to remember that you can't just sign over your share of your home to someone else to avoid it being sold. If you want to sell your share, you need to do it at market value. If you own your home by yourself, you need to get the official receiver’s permission before you sell it. This is because the official receiver has control of your home once you’ve gone bankrupt. If you own your home with someone else, you don’t need the official receiver’s permission to sell your share. You should still tell the official receiver before you sell it. Your home won't be sold unless the value of your share is more than £1,000, after any sale costs have been taken off. If your share is more than £1,000, the official receiver still might not sell your home. It depends how much money would be left after paying the sale costs. At 2 years and 3 months after the bankruptcy order is made, the situation will be reviewed. If your share in the property is still low, it's unlikely the home will be sold. The official receiver might apply for an order so they can sell your home at some time in the.

Key information

• sold your beneficial interest to someone such as your partner, friend or family member
• applied to the court for an order that you and anyone else living in your home have to leave
• applied to the court for a charging order
• come to an agreement that you will pay them the amount of your beneficial interest
• You might be able to stop your home from being sold if someone agrees to buy your share of it.
• It's important to remember that you can't just sign over your share of your home to someone else to avoid it being sold. If you want to sell your share, you need to do it at market value.
• If you own your home by yourself, you need to get the official receiver’s permission before you sell it. This is because the official receiver has control of your home once you’ve gone bankrupt.
• If you own your home with someone else, you don’t need the official receiver’s permission to sell your share. You should still tell the official receiver before you sell it.
• Your home won't be sold unless the value of your share is more than £1,000, after any sale costs have been taken off.
• If your share is more than £1,000, the official receiver still might not sell your home. It depends how much money would be left after paying the sale costs.
• At 2 years and 3 months after the bankruptcy order is made, the situation will be reviewed. If your share in the property is still low, it's unlikely the home will be sold.
• The official receiver might apply for an order so they can sell your home at some time in the future, as long as you still own it. The order is called a ‘charging order’.

Practical guidance

• Source: Check how bankruptcy affects your home

Related topics

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• Check if a financial service has followed the rules
• Check if you have to pay a debt
• Check the rules after you go bankrupt
• Check what an IVA is
• Cold called by a debt management plan provider