Question from sassyseph on house/debts - (Scotland)

sassyseph

we are in a very similar situation although i am now on benifits and my husband is looking for work we have been on a break with our lender and are due to pay this month, we can just about make that all other debts are the problem, we have no equity in the house mortgage and secured loan seen to that but we seem to have got deeper and deeper in trouble, my other debs are now with payplan but if i though i could go bankrupt and keep my home i would is this possible/ can someone tell me, if we had no debts we would be able to pay the mortgage and the secured loan on top is this possible to do we live in scotland i believe that might make a difference, can anyone help please? i think i may have put this in your question sorry new to this

fermi

Bump to top...............

Pammybun

Hi there - we have been through the Scottish bankruptcy process (two eyar in, one to go). If there is no equity in your house then yes you would be able to keep it (providing you have not disposed of the equity in it over the past six months).

However your lender would be notified.

To be honest in your situation I would recommend that you go and see a debt adviser and go into some sort of payment plan. I also think that perhaps you should look at your housing situation as you say that you can "just about" manage to pay your home loan. Just about is really not good enough - you need to make sure you can afford your home and all the associated running costs and have money to live on.

Why were you one a break from the mortgage? If it was because you are not working just now then I would suggest that you really take a long hard look at the situation and be honest with yourself. Home ownership is great but if it means that you struggle each month then you have to ask yourself if it is worth it.

Perhaps you could move to a smaller, less expensive house that would allow you to meet your mortgage commitments more easily. Alternatively maybe you could spread your mortgage over a longer term. The best person to speak to about this would either a debt counsellor or even a mortgage adviser.

I don't mean to be bleak but being totally honest with you I would say that if you are on benefits and your husband unemployed then perhaps you should step off the mortgage ladder just now. This would be preferable if you did it voluntarily and on your own terms than if you found you could not keep up the home repayments and got the house reposessed.

We had our own house and tried to keep it by entering a payment plan with our creditors, however the plan was going to last 10 years and when we looked at it in the cold light of day and realised that we would be living on beans and toast for the next 10 years just to afford a house that was going down in value and which, being honest, we would probably never own outright we reassessed things and spoke again to our advisor who agreed that bankruptcy was our best option.

We had £25,000 equity in our house and lost it last year. However renting is not all bad and we can now budget easily and I feel that, for the first time in a long time, our lives are in control and we are not a hostage to money.

Pam

smokey112

Hi Sassy
We are from Scotland and we where discharged in October last year

We had a secured loan and mortgage and no equity in our home - we still have our home and pay the mortgage and SL. As we had no equity in our home the Trustee was paid to lose his Beneficial Interest

HTH
Ang
xx