negative equity and bankruptcy

punkgirlyuk

My house is going to be repossessed within the next few weeks, I have recently split form my partner and can't afford the mortgage and secured loan anymore.

The house is likely to be at least £10k negative equity. I am looking into going Bankrupt. If i did this once the mortgage co had sold the house would i then be able to include this debt in the bankruptcy? Just wondering whether to try and wait for this to happen.

december

Hi and welcome to the board. I'm not one of the housing experts by a long short however if you go bankrupt and decide not to keep the house then any shortfall on the mortgage , negative equity and debts secured on the property are included in the bankruptcy. If you are looking at going bankrupt, make sure that you contact one of the debt charities first as if you don't the judge may refuse your petition. You could contact the CAB or CCCs here is their website http://www.cccs.co.uk/. If you have any questions then shout up

December

tigerfeet2006

Hi and welcome to the forum

It shouldn't matter when you go BR the shortfall and any secured loans should be included in your BR.

You really should get professional advice on BR as the judge could delay your petition untill you do. See links and numbers in my signature.

punkgirlyuk

Thanks,,

I will call one of those for advice, just trying to find somewhere else to live also, but its hard when you have a bad credit rating, no job and no deposit!!!!!!!!!!!!

december

What a number of people seem to do is either find somewhere and have a guarantor for the rent or save the money they should be paying for their mortgage and then pay their rent upfront. Also sometimes it's easier to find something in the paper rather than go through a letting agent as they won't necessarily credit check you although that can bring with it other issues. Sorry I'm not much help today!

December

tigerfeet2006

if you are advised that BR is an option for you from one of the debt charities then stop paying your mortgage, secured loan and any other debts and put the money towards a deposit and BR fees. Only do this if you are going BR within 2/3 months and do keep paying food, CT, utilities etc.

Dez-Titute

punkgirlyuk wrote: »

Thanks,,

I will call one of those for advice, just trying to find somewhere else to live also, but its hard when you have a bad credit rating, no job and no deposit!!!!!!!!!!!!

Hi Punkgirl,

Look over some of the more recent threads in particular the ones that give reference to contacting shelter

Will try and find a thread that may help,


Cheers DEz

Dez-Titute

Hi again Punkgirl

Try the following thread and link that it contains

http://forums.moneysavingexpert.com/showthread.html?p=12468509&highlight=Shelter#post12468509