If your spouse has been declared bankrupt, what are the risks to your assets? Can the equity of exoneration arise?
The often-given example of a case of equity of exoneration is where a wife mortgages the family home, together with her husband, as security for his business pursuits. The wife is treated as surety and it would be assumed that her share would not be included against his liabilities. This is not however always the case.
The leading authorities on this doctrine are: [Re Pittortou  1 WLR 58] and also the more recent case of [Armstrong v Onyearu and another  ECVA Civ 268] which deal with many issues that arise when dealing with property of spouses.
The dispute therefore arises where there is a question as to whether the loan is for the sole benefit of the husband, or also for the wife.
In general terms, the following applies:
Farleys have dealt with many claims against a spouse’s interest and on behalf of Insolvency Practitioners seeking guidance and assistance in this area.
A successful claim is largely dependent on the facts of the case and we therefore advise that you contact us as soon as possible if this situation has / could arise.
Get in touch with our specialist personal insolvency team on 0333 331 4380.Request A Call Back