If you go bankrupt do you lose your house?

Burp_2 · 29 August 2008 at 2:28PM

Thanks Ameratsu

He's qualified in Mechanical Engineering .... and your right ... everything seems to be for elctrical engineering ... but his qualification is more mechanical bias than electrical

I've been on holiday so have spent every day trawling the jobsites and sending his CV off to jobs posted ... I've registered him with all the local engineering recruitment places and posted his CV on all the websites; Monster, Just engineers, The Engineer ... list goes on ... there's 14 websites I go on in total every day!

Most recruitment agents have been pretty useless... they thank you for your CV and tell you they'll keep an eye out ... but then you hear nothing from them ... so we ring them up for an update and there reply is 'still looking' or that 'nothing suitable has come up yet'

My OH is similar to yours ... he's been out of the direct Engineering side of it for nearly 3 years ... so he's classed as rusty I suppose

My job isn't ideal as you don't get bonuses or pay rise or overtime - stinks being a Teacher

sorry for whinging but been looking at our individual bank accounts and our joint accounts and its not looking good

Burp x

Bohemian_Raspberry · 16 March 2009 at 8:41PM

Hi Burp

I was just wondering how you were getting along as myself and OH have found ourselves in a similar position, with a mortgage of 89k (95%) and an unsecured loan of 16k and godiva are being less than helpful, even with the cccs helping us

*br*

Tobiwan_Kenobi · 16 March 2009 at 9:03PM

I had a recruitment business, which I have had to fold - There are very few vacancies and a lot of firms competing for them. Times are very tough! I am looking at jobs that are completely different to my experience, predominantly in the public sector as they have more security. It may be worth doing likewise?

We have equity in our property but we're determined to be able to keep it (how likely that will be I'll know after OR meeting next week). We're trying to stay positive about it and will negotiate hard!

Lensman_2 · 16 March 2009 at 9:16PM

Burp.

I am an engineer too. The Production type. I had to move from Plymouth to Hampshire to continue my career. Can you widen his choices if you move? Your job is very transferrable.

Just a thought.

I know the world looks bleak right now. But you need to prepare for the worst. And that is bankruptcy and losing your home. Knowledge is power here - so get yourself an A level in it by surfing this board. Read some diaries. By preparing for the worst, you will be ready to grab the best if the opportunity arises.

And give your OH a kick up the !!!! from me. It should be him not you trawling the job sites. Possibly you should be sorting the finances the best you can. But not dong the legwork for the job too.....

Bassplayer · 17 March 2009 at 12:23PM

Hi Burp

If it helps, I stopped paying my mortgage to Wave last August or September and I've spoken to them regularly and they seem keen NOT to reposses. I guess it's happening a lot and it's not in their interests to do so.

Similarly, I stopped paying my second charge to First Plus at same time, and here we are in mid-March and I have just rec'd a letter from their lawyers telling me that they are about to start proceedings to repossess. This could take weeks, if not months.

Many, many people are in your position so try not to worry too much. You could talk to your lender I'm sure they will give you a fair hearing, especially if you go to them with proposals for reduced repayments...they are going to want to see your income and expenditure figs though.

Good luck with it and do let us know how it goes

BP

peachyprice · 17 March 2009 at 12:26PM

This is an old thread resurrected from August, i don't think Burp is around anymore.

thepikey · 7 May 2014 at 1:04AM

Hi due to gambling problems my credit card bills have rocketed, I've now faced my problems and seem to be ok but my bills are too high.
I've never missed a mortgage payment ever, can the credit card companies force me tosell my home? :-(

alastairq · 7 May 2014 at 5:43PM

thepikey wrote: »

Hi due to gambling problems my credit card bills have rocketed, I've now faced my problems and seem to be ok but my bills are too high.
I've never missed a mortgage payment ever, can the credit card companies force me tosell my home? :-(

Not directly, no.

Credit card debts are unsecured.

Therefore, the only ways an unsecured creditor can secure repayment of debts is via the Court, for a CCJ [with subsequent enforcement of CCJ if the Court allows..that means Bailiffs], or, attachment-of-earnings.......or, a creditor can go to Court to seek to place a Charging Order on your property. This converts unsecured debt into secured debt.

Then the creditor can go back to Court to seek to realise the debt by the sale of the property..providing there is sufficient equity to meet the needs of the First Charge [usually, a mortgage] plus any other Charges noted.

A defence against this action would be, if children still lived in the property, or someone living there had a particular need to remain in that property.

Then the Court could refuse to allow the property to be sold to realise the Charge....although that Charge would remain, and become payable once the property actually is disposed of.

Another method open to a creditor is to seek a Bankruptcy Petition.

In that case, if there was any equity in the property, the Official Receiver would seek to realise that portion of the equity to which the Bankrupt held an interest.

This might be achieved by another party purchasing the ORs interest...which would allow the BAnkrupt to retain the property.

Or, the OR could place a Charge on the property, which would be payable [with interest] once the property was eventually sold.

Or, if the amount was significant [over £10k, so I believe?]...in terms of the BR's share of equity,and this share could not be bought by another....then the House would be sold.

First line of defence is to watch for any creditor trying to turn their debt into a secured debt. [Using the Court]

A personal Bankruptcy Petition, whose date pre-dates any attempt to obtain a Charge in Court, means the debt [all of them] are included in the Bankruptcy....probably one of the only times when it is better to petition BAnkruptcy sooner rather than later? The BR pre-empts any attempts to create secured debt.

Of course, if there is actually equity in the property, it is then important to find the funds to purchase the OR's interest in that property.

If you go bankrupt do you lose your house?

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