Is This True??

Juneman

Hi everyone I am new to the forum and have a question. I have borrowed about £150,000 pounds 104,000 northern rock which is a mortgage and 23,000 GE Money Secured against the house. The rest is credit cards and other bits, Me and my partner split up because of the money we owe and she has taken the kids I am trying to work hard to get her/them back. I have been looking at the bankruptcy option. When I spoke to Northern Rock today they said that if I went bankrupt that the secured debts wouldn’t go I would still have to pay them back is this true?

thanks for reading

PS

The debts are in both our names but she has moved to scotland and can do some kind of bankruptcy up there where all of her debts are gone and she can start again.

gettingbetter

Sorry to say they dont just disappear even in scotland

i was made br in may this year, luckily my parents took out a loan to cover what i had to pay and i have to pay them back.
They go down all routes to recover the money


kas

peachyprice

Yes it's true secured debts aren't included in bankruptcy. If the debts are joint and only one of you goes bankrupt the debt will then fall to the other person in it's entirety. So if she goes bankrupt in Scotland all her own debts will go, the unsecured joint debts will become yours, but all the secured debts will remain in both names.

fatbelly

Any equity in the house?

Juneman

No the house is worth about 90,000. What is the best option? there just doesnt seem to be an end to this. Thanks for the replys so far

fatbelly

So there will be two shortfall debts - these are included in bankruptcy

http://www.insolvency.gov.uk/faq/faq.htm#16

This is probably England & Wales law

dalip

The secured debts can be included in YOUR bc if the house is reposessed as they then become unsecured. Not sure on the actual in's and out's but can you post what your debts are,what are joint,and what are your partners. In that i mean what are in what names. It may well help other posters to post advice if they have that info. Also may be worth contacting either your local CAB or one of the charities in my sig.D

peachyprice

You need to take advise from one of the debt charities below. It may well be that they advise that if your ex is to go bankrupt the only way out is for you to do it to, unless you can afford to take on all the joint debts.

If the house is repossesed and you are bankrupt any shortfall on the mortgage or secured loan will be included.

Debt charity numbers are here, give them a call

http://www.moneysavingexpert.com/loans/debt-help-plan#help

peachyprice

fatbelly wrote: »

So there will be two shortfall debts - these are included in bankruptcy

Not if only one party is bankrupt.

fatbelly

peachyprice wrote: »

Not if only one party is bankrupt.

True - the bankrupt party is released from the debt. But if it was a joint debt the other party will be pursued.