whats happens after BK

wannaBfree_3

me and my OH are going to be goin BK, my OH is all for it however I am still a bit wary. Financially we have to but we have just got our step on the property ladder and I worried that once we come off it we will never be able to get back on it.

So my question is, I know it is a long way away but what life is there for us after BK. Is our credit tarnished forever, would we ever beable to buy a house again?

Thanks.

k2nga

Well they way you have to look at it is even if you keep your current property are yo sure that you will be able to pay in the future as you might just be putting it off when you could just get it out the way now and start a fresh. If after going BR the house house no equity anyway and you can afford the mortgage you may be able to stay in it but with house prices tumbling it might not be the best idea.

Being BR will stay on your credit file for 6 years but after that i am told that mortgages are not impossible although you may need a decent deposit but as the tide is changing or will change towards BR i think this might change.

skylight

Yes and yes. You may or may not lose your current home (like cars, they are an even bigger minefield!!) and although BR stays on your file for 6 years mortgages are attainable. The longer after BR though the easier it will become. However, if you are even asked if you have even been BR, you must answer truthfully - even in 20 years. This can appear on insurances as well.

In the current climate its difficult for anyone anyway, so after you have sorted yourself out, got a deposit and the passing of time, things will be easier.

wannaBfree_3

skylight wrote: »

Yes and yes. You may or may not lose your current home (like cars, they are an even bigger minefield!!) and although BR stays on your file for 6 years mortgages are attainable. The longer after BR though the easier it will become. However, if you are even asked if you have even been BR, you must answer truthfully - even in 20 years. This can appear on insurances as well.

In the current climate its difficult for anyone anyway, so after you have sorted yourself out, got a deposit and the passing of time, things will be easier.

thanks.

our house has no equity so we are just thinking hand it back. its not in good condition and isn't in the best of area and with 3 bedrooms its too small. so the idea of renting for less, with 4 bedrooms in a nice area for our children seems a big fat positive for us as we would never be able to save money to sell our house and we wouldn't be able to afford a 4 bedroom house anyway.