If you do not have enough assets to pay your creditors without selling your house, it can be sold as a part of the bankruptcy procedure.
If you’re the sole owner of the property, the house will be sold and any money left after paying off the mortgage will be used to pay off your debts.
If you own the property jointly with someone else your share of the equity in the property will be used to pay off your share of the mortgage and any money left will be used to pay off your debts.
If you have a partner, spouse, or former spouse, or children living at the property, the trustee usually can’t sell the property without your permission for a year after the date of your bankruptcy. If after three years there’s less than £1000 equity remaining in the house then your house will not be sold and the ownership will not return to you. If more than £1000 equity remains after this time, the house may still be sold and a charging order will state the amount that will be taken from the sale towards repaying your debts.
You can stop the sale of your house if a family member or friend buys out the equity in your house.