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Help!!Reposession Bankruptcy what first???

minty09
Posts: 5 Forumite
Hi I am new so please bear with me will try and keep it short!!
My partner and I entered into shared ownership property 2 years ago( regret doing so now!!)At the time it was our first property we were so excited!2 years down the line not so good.The flat was original valued at 130k so our mortgage is for 65k.Due to a number of reasons we also have 40k worth of unsecured debt.I had my baby in May 2008 so am on maternity leave and receiving stat maternity pay that ends in Jan.My partner is a self employed bricklayer and as you well may know the buiklding industry is failing miserably he has had no work for 4 weeks and still only has the odd day here and there!We are behind on rent and mortgage.we are not keen tostay in the property and have our bankruptcy hearing on 4th december.What i need to know is shall we hand our keys back first and then decalre bankruotcy or go bankrupt and wait for them to reposess us??i know the estate goes to the OR after bankruptcy but as we only have a 50% beneficial interest will she sell?Im not sure she will if not we will get reposessesd then can they chase us for any shortfall as Im almost 100% certain it is in negative equity some forums says if youre bankrupt they cant chase even if you are reposessed after other forums say no,get reposessed first!!im so confused!!also if we go bankruot i know they cant take furntiure clothes e.t.c but if we get reposessed can they take anything?If anyone can help or has been in a similar situation please advise!i dont know what to do for the best went to citizens advise basically told me to claim benefits to poay rent and council tax , pay my mortgage out of the maternity pay which leaves £200 fr all other bills which is ridiculous and he told me to not pay any loans or credit cards but thats not going to help the situation in the long run as i soon will not have the maternity pay !!
Thanks for reading!
My partner and I entered into shared ownership property 2 years ago( regret doing so now!!)At the time it was our first property we were so excited!2 years down the line not so good.The flat was original valued at 130k so our mortgage is for 65k.Due to a number of reasons we also have 40k worth of unsecured debt.I had my baby in May 2008 so am on maternity leave and receiving stat maternity pay that ends in Jan.My partner is a self employed bricklayer and as you well may know the buiklding industry is failing miserably he has had no work for 4 weeks and still only has the odd day here and there!We are behind on rent and mortgage.we are not keen tostay in the property and have our bankruptcy hearing on 4th december.What i need to know is shall we hand our keys back first and then decalre bankruotcy or go bankrupt and wait for them to reposess us??i know the estate goes to the OR after bankruptcy but as we only have a 50% beneficial interest will she sell?Im not sure she will if not we will get reposessesd then can they chase us for any shortfall as Im almost 100% certain it is in negative equity some forums says if youre bankrupt they cant chase even if you are reposessed after other forums say no,get reposessed first!!im so confused!!also if we go bankruot i know they cant take furntiure clothes e.t.c but if we get reposessed can they take anything?If anyone can help or has been in a similar situation please advise!i dont know what to do for the best went to citizens advise basically told me to claim benefits to poay rent and council tax , pay my mortgage out of the maternity pay which leaves £200 fr all other bills which is ridiculous and he told me to not pay any loans or credit cards but thats not going to help the situation in the long run as i soon will not have the maternity pay !!
Thanks for reading!
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Comments
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Hi and welcome minty. I would say do things in your time to suit you. I would go BR first myself however it may be easier to get rented accommodation before BR. First though you need to check your shared ownership contract to see how or if bankruptcy will affect it.
Give one of the debt charities a ring like CCCS, National Debtline or CAB. Always come back here and let us know what they say as I hate to say, sometimes they get it wrong. All of us have been through it and I'm sure there aren't many situations that we haven't seen before.
Now, dig out that contract and let us know what it says. If you do go BR and you do not intend to stay in the property for whatever reason, the shortfall if there is one will definitely go in your BR so don't worry about that!!!
:j :j
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Hi thanks for your input that puts my mind at rest!am going to call one of the charities today.I called the housing association last week to ask as I couldnt find anything at all in the lease regarding bankruptcy so i called and he basically said there is no clause in the lease regarding it so who knows what happens i take it that even though we have gone bankrupt we can still stay there as long as we pay the rent?? ,but looks like my partners job is very unsafe so we definately wont be able to pay rent or mortgage so i guess we need to get out have only missed 1 pmortgage payment so far but next one is due soon and wont be paying that either and they have already sent out final reminder stating they will be passing to solicitors and they want a mortgage counsellor to do a home visit!!!im scared anyone know what happens then!i want to go now and get it all over and done with!0
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Hi Minty,
As FYP says, you can do it all in your own time. I makes no difference whether you move out before BR, or the house get repossessed after, any shortfall will always be covered by your bankruptcy.
If you do stay put as long as possible before the repossess you it will give you longer to save for a deposit.Accept your past without regret, handle your present with confidence and face your future without fear0 -
Hi Minty,
Sorry to hear of your situation, but if it's any consolation I am in the same boat (OH bricklayer too). We're already on a suspended repossession order and basically just sat waiting for the eviction notice, although we spoke to lender yesterday and they haven't started proceedings yet, we can make very small payments (£100 etc) which we will if possible even though we know it's the end.
We're going to have to stay with OH's mum ( me, OH and 1 year old in a single bedroom) as we have no money to even private rent (bond rent up front etc). I am in the process of getting furniture storage quotes and finding temporary accommodation for my dog. I've been dealing with Shelter and they are excellent, so helpful. Going to be a tough time ahead and I'm trying my best to steel myself, at the moment all I wanna do is pull quilt over my head and not come out till it's over.
If you want a rant feel free to PM me as I know EXACTLY how you feel.:heart2:Baby boy due 4th March 2011:heart2:0 -
Minty if you have just started missing payments you have a long way to go before repossession. Use this time to save as much as possible and then you can pay a nice deposit on a rented flat. If your income goes down then you can probably get housing benefit. So calm down and I'm sure with the experience everyone has on here we can find a options for you!
:j :j
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fiveyearplan wrote: »Minty if you have just started missing payments you have a long way to go before repossession. Use this time to save as much as possible and then you can pay a nice deposit on a rented flat. If your income goes down then you can probably get housing benefit. So calm down and I'm sure with the experience everyone has on here we can find a options for you!
How many mortgage payments are usually missed before court proceedings start?0 -
Minty, whoowns the other 50% of the property, a housing association? and your rents upto date? speak to them about getting a rented property, they are the obvious source of one or they may even buy back your half of the property, these are strange times we live in.Now we all know how it felt to play in the band on the Titanic...0
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willsandolly wrote: »Hi Fiveyearplan.
How many mortgage payments are usually missed before court proceedings start?
:j :j
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Hello, Sorry to but in - don't know if it will help, but we're in the same boat. Haven't paid any mortgage or secured loan payments since May and neither company have started legal action yet. We move into rented property soon and will be handing the keys to house back to mortgage company after we move out.
I spoke to CAB months ago about the whole repossession process and they have made it sound relatively straight forward. Basically we plan to go BR when we receive chasers for the shortfall. I hope it will be as straight forward as CAB made it sound!
Good luck to you all - I know it's really stressfull - but hopefully there will be light at the end of the tunnel for us all.0 -
You can always go BR before if you want/need to. Any shortfall will definitely go into your BR so you have time to do things at your own speed. If you have any other debt and they start CCJ proceedings, I would go BR before. However if they do send CCJ papers fill in the acknowledgement and say you intend to defend the whole thing - this will 'buy' you 14 more days to organise your BR.
:j :j
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