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The Bankruptcy Service Case Study Example: Properties & Beneficial Interest

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

Will We Lose Property Because of My Bankruptcy?

I am a partner in a business that has struggled for a while now, and it looks like the company may have to call it a day and cease trading. If bankruptcy is the path we take, will my house be at risk if my wife continues to make mortgage payments by herself?

This all depends on whether you have a “beneficial interest” in the property – or to rephrase, if you are named on the mortgage and have thus contributed towards it previously. If so, there is a risk that the property could be sold in order to release the value of your share of the property, and thus raise funds towards paying off creditors. Other factors that come into play include whether there is any equity in the house, as it may not be beneficial to sell it anyway. Each case is different, so the best thing you can do is seek further impartial advice on the matter as soon as possible.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.