voluntary repossesion and bankruptcy

losing_it_all

No theres is no equity in the property with prices dropping the way they are i would break even or take a loss on the sale, also I cant realy afford to pay the mortgage as it is so if I was to try and sell I will be committing myself to months of living under the breadline with the same outcome. at the moment I am recieveing payments monthly of 1300 from an employment tribunal I won would this be taken into account when i go bankrupt as these will end in december and then i will only have my wages 1200 and a mortgage of 1035 to pay from it plus all living expenses.
Any suggestions on what my best options are i dont want to do a voluntary repo and then when i go bankrupt the OR says i had adequate income to pay for the last 3 months now to december.

2Loose

Hi Losing it. I am in a fairly similiar situation, stopped paying my mortgage a few months ago while saving to go BR, intending to give house keys back and move to a rental property instead once it is all booked. I booked my BR last week for the start of December and now need to find a place asap. I must admit that the mortgage company are conspicuous in their absence, as I now have 6mnths of arrears in total - I thought they would give me a lot less breathing space than they have.

I too had conflicting information about VR and the order to do things - go BR then give keys back or vice versa. I was told that it was better to leave the VR until after BR because...drum roll....there was less stuff to fill in on your BR forms if you can believe that. I am intending to do it the other way around because I think finding a tennancy once BR is going to be far more difficult and most people concur.

marleyhull

I am considering handing back the keys as i am heavily in arrears and the lender is about to start repossession procedures anyway. The house is in negative equity as well and i am already i rented accommodation.
My question is just because i am voluntarily handing the keys back does that automatically mean i have to go bankrupt? I run my own buinsess so want to avoid this for obvious reasons. i have sevarl other debts with cards and i am currently on minimum payments with those creditors.

debtinfo

No you dont have to go bankrupt, but it will leave you with a large debt which you will need to come to some arrangement to pay

shadow4

If you are sure you can no longer afford to pay your mortgage even if you have no other debts, you should stop making the payments and use the money to save for a deposit so you can rent. It would be easier for you to rent before you go BR as they normally do credit checks. We just waited to go BR until our house had been repossessed and then sold some months later then they chased us for the shortfall. On the day we moved out I rang about the CT and they said you do not need to pay for 6mths while your property is empty so in that time it would have been repo'd or maybe even sold on so you should not be liable. Good luck I was in the same situation as you and it will get better X