Bankruptcy options Northern Ireland

mrsrwallace · 23 October 2014 at 3:03PM

Hi, am a poster from Northern Ireland and would be grateful for some advice or info if anyone can help.

Long story short is myself and my ex voluntarily surrendered our house to the mortgage company (after job loss) who then went on to sell the house. It was in negative equity and to date neither of us has had any contact from the lender or their solicitor with a final figure that is owed though rest assured we are talking at least £50,000.

I am currently renting a property and have in the last year secured a permanent job that has great security and career progression in the health sector. I have been doing my sums and I could get a mortgage cheaper for what I am currently paying out each month in rent. However, due to my poor credit history and outstanding debt to my original mortgage lender, there is NO WAY I could apply for a mortgage at this stage. But considering I have a good 25 years left to work to retirement I would like to finally have some place to call mine when I am in my 60s.

So, my questions are.....
1) How much is it to go bankrupt?
2) What are the procedures in doing so?
3) How long after being declared bankrupt can I realistically apply for a mortgage?
4) Am I chasing a pipe dream and should I just accept I will never own my own home?
5) Or do I just let time run its course and let the lender make me bankrupt?

I have had such a stressful few years and can't believe I am even considering taking on a mortgage but my experience of rental properties is woeful and it is a neverending circle of moneygrabbing landlords who do everything they can to withhold your deposit at the end of the agreement yet again leaving me out of pocket. Though even at this consideration stage I am mindful that no mortgage company would even look at me with my previous history.

Sorry if this is duplicating any other posts.

Thanks for reading.

nire · 29 October 2014 at 12:04PM

So, my questions are.....
1) How much is it to go bankrupt?

It costs £500 to £600

2) What are the procedures in doing so?

You need to seek advice first so contacting citizens advice would be a good start.

3) How long after being declared bankrupt can I realistically apply for a mortgage?

Realistically you'll need to wait 6 years for the bankruptcy to come off your credit file but even then there's no guarantee. Some mortgage lenders will ask if you have EVER been made bankrupt and take this into consideration. (Although many on here have been accepted)

4) Am I chasing a pipe dream and should I just accept I will never own my own home?

I wouldn't give up and seek advice. £50k debt is a sizable amount and realistically with this debt ask yourself would you be accepted for a mortgage?

5) Or do I just let time run its course and let the lender make me bankrupt?

On this one its up to you. But remember if you wait for this to happen it could take a year or two where you then need to add the 6 years on for it to come off your credit file.

My own experience was that I included the mortgage in my BR and allowed the bank to repossess the property.

Bankruptcy options Northern Ireland

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