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advice re house reposession/bankruptcy

advice re house reposession/bankruptcy
Hi everyone. i'm new tothis but would really appreciate some advice. Neither me nor my husband work now, long story. house on market had buyer who then backed out in March. we moved abroad for personal reasons and hubby had a job but later contract reneged upon. Currently living and very settled in new place and swapping labour for food wood etc. My children have never been happier. However we have a loan of £15,000 and a mortgage we can't pay. no one has walked through the door to even look at buying it.Price has been reduced and we have been on interest only last few months but now all money has run out. Ive tryed to get a longer term on the mortgage to reduce payments and look at renting it however the rental wouldnt even cover the interest only and even if it did out other fear is what if soomething goes wrong like the boiler and we'd be liable but wouldnt be able to pay for a new one.
would we be better going bankrupt and what does this involve or handing the keys back and defaulting on the loan cos we cant pay either. if we handed the keys back will we be chased for the rest of our lives.
Please advise im at the end of my tether thanks

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Comments

  • DON79
    DON79 Posts: 3,842 Forumite
    Hi, you can go bankrupt if you are insolvent and can't pay your debts (including the mortgage and secured loan). If you have the house voluntary repossessed, any shortfall from the mortgage and the secured loan will be included in the bankruptcy.

    if you do go for vol repo and hand the keys back, be sure not to sign anything either before or after your bankruptcy which asks you to confirm you are still liable for the repayments and shortfall.

    If you go BR, you will not be chased for the rest of your lives.

    Have you taken any advice from the cccs or national debtline or cab yet regarding your situation? That's one of the first things to do. the numbers are in the sticky's at the top of the forum.
    BSC #215/No.1 Jan 09 Club
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