If you go bankrupt do you lose your house?

May seem like a ridiculous question I know... but I honestly have no idea what bankruptcy involves!

Got a lot of things going thru my head at the mo ... OH has been made redundant and is struggling to get a job (in the engineering industry) we bought our first house in March a mortgage with a loan attached to consolidate our student debt ... a Moregage product by Godiva mortgages ... I'm just concerned if he doesnt get a job soon and we start struggling with repayments that everything will go t*ts up! and the house will be repossesed etc .... we can afford to pay mortgage & loan from just my income but not the other things like gas/elec etc... he's getting the odd bits of temp work at the mo but not a sniff of the money he used to be on!

I know this is a garbled message but the unkown worries me!

Burp x
«1

Comments

  • RichOneday_2
    RichOneday_2 Posts: 4,403 Forumite
    In terms of bankruptcy and losing your house it depends whether there is an asset, any equity.

    If there is no equity, you will probably be able to keep it and buy the BI, beneficial interest. If there is significant equity, the Official Receiver is going to want it I'm afraid.

    Outside of bankruptcy, repossession is simply a matter for your lender. However, if they repossess outside bankruptcy any shortfall will still be your liability, in theory at least, whereas in bankruptcy the shortfall will be cleared.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19):j:j
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Red1708
    Red1708 Posts: 843 Forumite
    Hi Burp

    I'm no expert on property but there are plenty that are who will be along soon to help you. Just wanted to let you know that there are quite a few members of this forum that have managed to keep their house .

    Red
    BSC Member 59 - AD 29th March 2008


  • RichOneday_2
    RichOneday_2 Posts: 4,403 Forumite
    But your first steps are to get a Satement Of Affairs knocked together to show your income and expenditure and ring CCCS at the earliest possible. They will put things in perspective for you and go through your income and outgoings.

    At the end of the day, you have to prioritise in roughly the following order:

    Food, Essential Utilities, Mortgage, Secured Lending, Unsecured Lending, Anything Else.

    From what you have outlined I think you need to get on to your lender and ask to make reduced payments for a short period until your joint income improves. They will cooperate much more willingly if forewarned.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19):j:j
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Burp_2
    Burp_2 Posts: 276 Forumite
    Thank you for the quick replies :)

    we are paying the mortgage back repayment+interest so might be worth ringing to see if they suggest to switch to interest only or reduce payments ... the mortgage was 100% mortgage ... but done as 95% mortgage with the other 5% rolled into the unsecured loan attached to the mortgage

    other than that are other commitments are just things like food, utitlity bills and my OH has a credit card

    I hope he find a job soon :(

    Burp x
  • RichOneday_2
    RichOneday_2 Posts: 4,403 Forumite
    OK, so if the worst came to the worst in bankruptcy you would be able to keep the house probably as there can't be any equity.

    The key is to make arrangements with your lender, and anybody else you can think of, to get your total outgoings within your current income. Payments can be caught up later if necessary. If making the mortgage interest only does the trick great, if not maybe you need to request half payments for three months.

    The fact is you are tackling this before it becomes a major problem, so bankruptcy should be the last thing on your mind. You don't mention any great debts other than the mortgage.

    Therefore, nobody is going to make you bankrupt and it makes no sense whatsoever for you to do it yourself.

    You've got a short term budgetting problem by the looks of it, which is likely to get back on track sooner or later.

    Good luck.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19):j:j
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • Burp_2
    Burp_2 Posts: 276 Forumite
    Thanks Richoneday :)

    We do have great debts ... our mortgage @ £116000 and the moregage unsecured loan at £22000 ... the repayments for these are manageable on my income and OH was covering all other payments such as utility bills/council tax/foodbills etc but now things are extremely tight now his income has halved

    I think I should do a SOA ... I shall post it up here when I do one :)

    Thanks again

    Burp x
  • RichOneday_2
    RichOneday_2 Posts: 4,403 Forumite
    OK will have a look when you post SOA.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19):j:j
    Blackpool Marathon 11/4/2010 (Target=2:59:59) (6:52/mile)
    Abingdon Marathon 17/10/2010, (Target=2:48:57) (6:27/mile)
    09/10 Race Results : http://www.thepowerof10.info/athletes/profile.aspx?athleteid=103461
    Racing Plans/Results - Post 3844 (page193)
  • do you WANT to keep it though?.............
    Now we all know how it felt to play in the band on the Titanic...
  • Burp_2
    Burp_2 Posts: 276 Forumite
    Very upset at the moment :(

    Just rang Godiva and they were very helpful ... they said they were unable to offer a payment holiday because of the type of mortgage so she worked out if paying interest only would be more helpful but the difference was only £70 or something like that ... her best advice was to 'ride the storm' :(

    to make things worse OH had a 2nd interview for a very good job ... down to him and one other and the other one got it due to 'more experience' so been a very bad day today :(

    just seem to be sinking into our overdrafts :(

    Burp x
  • ameratsu
    ameratsu Posts: 87
    First Anniversary Combo Breaker
    Forumite
    Chin up Burp - we are in similar straights, my hubby's temping at the moment too, on less than half of what he was earning, we can keep going for a few months but after that we will be stuffed.
    Is your hubby registered with all the engineering recruitment specialists?
    Get him to send his CV in to every agency he can find in your area, it's highly frustrating waiting for the phone to ring though and you have to keep on to them.
    My hubby's an engineer too, unfortunately he's been out of the game for a few years though - he moved into management and is finding job hunting tough.
    All the engineering jobs seem to be for electrical/electronic engineering - what's your hubby's qualification?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.4K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards