Bankruptcy & Property - What did you do?

Jaelor

Seeing as its looking like the bankruptcy route for me, I just spoke to a really nice guy at the National Debtline and he couldn't of been more helpful. As I have a mortage and a secured loan and I'm in negative equity, its a little more tricky.

So, for those who have been in a similar situation, these are my options - can you point out any pro's & con's or let me know how you did it?

Option 1. Try and sell the house now and move into rented property. TBH, our houses are not selling at the mo, and the place isn't up to scratch, so this could be a lengthy and fruitless process. I've also heard that FirstPlus :mad: can make life difficult by refusing to move charge.

Option 2. My hubby and I declare ourselves bankrupt whilst still in the property and throw ourselves on the mercy of the OR to see if he will let us stay whilst we sort alternative accomodation out. We have a 6 month old son, so could this be likely?

Option 3. Hand the keys back to our mortgage company and simply move out and declare ourselves bankrupt.

Option 4. Stop paying FirstPlus and wait for them to take legal action. This may make it easier to get assistance from the council - I don't want a council place, but am worried I will not be accepted by any landlords in the private sector.

I need to sort something out soon or my head will explode. Also, it would seem I'm gonna have to shell out for childcare sooner rather than later.

Which of these options would be the best? what have you done? Just as an aside, the guy at the National Debtline said companies like FirstPlus lend so much, "even when you have little or no equity", because they hope that you will default and they can take charge of the house and hopefully make money on it. Nice.

THE_LONE_RANGER_4

hi first of all dont panic there are plenty of people on this site who will give good advice having not been bankrupt i cant help much but a person in the village went bankrupt for 50grand she has kept her house and from what people are saying she can keep it but if she sells thats when she must pay her debt might be wrong though, i do no one thing though dont hand the keys back and walk away do a soa you never no you may be able to sort it with out going bust all the best andrew

smokey112

Jaelor

We where declared BR last year on 27/10 in Scotland

We have a secured loan with FP and a mortgage - total £78k - house valued at £75K
Our mortgage and secured are both up to date. as I have no equity the OR wishes £500 from a 3rd party for his beneficial interest - this means that should the house value go up/and or money owing to FP goes down he will not pursue interest in the house

Please feel free to ask anything else

HTH

Ang
x

livilou

i think I would stay put and hope that the OR is nice to you!!! from memory when my hubby delcared bankruptcy I think they have to give you 12 months to find alternative accomadation. Our house has been the last thing to sort in hubbys bankruptcy, which eneded in february but we are still sorting the house, so they won't just suddenly turn around and say you have to out in 2 weeks.

have a look at the insolvency website as there is alot of useful info on going bankrupt and whathappens to your home.

Can you still pay the mortgage?? we made sure the mortgage was always paid so as not to cause any more problems.good luck

livilou

meant to say contact gill at the bankruptcy advisory service for a leaflet, I remember someone else posting on here to say she was very helpful and they kept their home.

http://www.bankruptcyadvisoryservice.co.uk/

snake666

hi
i went BR last july and moved out a week before as the wife didnt want want debt collectors around whilst i was a work.
we didnt pay a mortgage since april and we still have the flat the bank have been round twicw in the last week to talk about it but as we dont live there now im unable to see him
going BR was the best thing for us after paying out around 2k a month we have to pay rent and £115 to the OR for 3 years and we will NEVER have a credit card again

and do we feel better now after going BR ? TOO DAMN RIGHT

hope that helps a little
snake

livilou

i guess it depends how much the house means to you. Our home means the world to us and is where we have had our 2 children - it's their home so have been willing to fight tooth and nail to keep it but maybe if it was just hubby and I we would have let it go.

slash40

if the house is in negative equity and you are up to date with the mortgage dont panic. im no expert but have heard of people keeping their houses in that situation. i would sit tight for now, pay the mortgage if you can , and get expert advice.