Can Bankruptcy cause a house to be lost in these circumstances?

[davebaldwin]

I am asking this question for my other half's mother:

She owns a house and has had her common law partner living with her for 10 years +. She has just found out he is in financial trouble and is going for bankruptcy which is a complete surprise to her. She is obviously worried that they can claim the house from under her feet. The way I see it is that if she "had a somewhat rocky relationship with her other half, to protect her house for her children in future years, she had a tenancy agreement between her and her other half, albeit for �1 a year, from when he moved in, it means that he is a tenant, and even if he is her other half as well, this would mean they cannot claim the property from her?"

I look forward to your answers as the worry is causing her a lot of distress at the moment and it would be nice to put her mind at ease if that is right.

Thanks!

[themas]

The insolvency site includes a booklet on what happens to the home in bankruptcy.

Even if he has never been on the title deeds he could still have built up a beneficial interest in the home - for example if he has helped to pay the mortgage or has contributed in other ways - paying for or building an extension or kitchen refit etc. If he has built up such an interest it would have to be valued and - to avoid the possibility of the house having to be sold - his partner or some other third party would have to buy out his interest from the OR. The booklet has info on this.

It may well be difficult to get an argument that he is a tenant accepted when there is no evidence of a tenancy. After all, they are living together as husband and wife. Also, is he the father of her children?