Will I be able to sell up and move on?

dsteve

Hello,

I was made bankrupt in sept 2006. The OR has recently contacted me asking for valuations on my house and balances of our mortgage and secured debts. The property has still got approx 10,000 negative equity.

My wife and I have recently been considering selling up to pay off our mortgage and 2/3 of secured loan. We want to rent somewhere because the mortgage and loan repayments are crippling us and we're bascally trapped in a property that is unsuitable for us and three kids.

Does anyone know how my bankrupcy will affect this? Will it be possible to achieve as there's no beneficial interest in the property? Any help or advice will be much appreciated- all this legal stuff baffles me!

thank you

David.

Bethankim

Hiya,

if you sell and there is a shortfall then 1 of two things could happen. although others may have better knowledge than me.

if it was only you who went bankrupt then your wife will be liable for the shortfall.

if both of you went bankrupt and you included the mortgage and loan in your bankruptcy then i think the shortfall would be included in your bankruptcy (the bit im not totally certain about is whether the lender will agree a sale with a shortfall)

hopefully someone else can help there..

fiveyearplan

If you and your wife are both on the mortgage and you both went BR then you could let the house go and providing the secured loan was pre-BR then it would all be included in your BR so you could walk away free. Any new debt post BR would stay with you though.

fiveyearplan

But if you do decide to walk away be sure you don't sign anything from the mortgage company! If you do move out be sure to contact the council and tell them the property is empty and you will get 6 months of £0 council tax. If the property hasn't been repo'd before that time you will then be liable for 50% council tax. Small price to pay really to get rid of that debt.

dsteve

Many thanks for your advice guys!