Beneficial interested-don't want to buy it due to seperation

panickymum

Hi everyone, i'd really appreciate any advice here as I don't know where we stand.

My partner and I went bankrupt in October 2008 and had the letter asking us to delcare our interest in the BI and return with a valuation 3 months ago, which we did and have not heard anything.

However since this date we have decided to seperate and as neither of us can afford the mortgage alone we are no longer interested in the house. We have informed the receiver we are separating but have not heard anything from them again.

If I stop paying the mortgage, what are the implications of this? The mortgage is in both our names and theoretically speaking this means we can afford it and CAB say Northern Rock will take us to court because this is a case of us simply not wanting to pay it rather than not being able to pay it. Whilst I understand this, CAB seemed unable to advise the receiver's role here and were offering advice without seeming to understand that the house with the receiver, rather than with us, at the present time.

I have not missed a mortgage payment yet but was thinking of doing so this month. Being bankrupt I will not pass a credit check on a house and had wondered how long I might be allowed to stay here (I have a dependent) and if I might be allowed to save the money I would have spent on a mortgage for 6 months rent in advance. I suspect not - any tips on the legal implications of my scenario would be greatly appreciated.

Many thanks for reading. This has been such a difficult time and I just want a fresh start.

peachyprice

CAB seem to be creating a problem that isn't there TBH.

You can stop paying your mortgage, let the house be repossessed, and the shortfall will be included in your bankruptcy, simple as that.

How long you will have is a bit of a piece of string question really, it depends entirely on NR, sometimes they can take a year to repossess, sometimes it's a matter of months.

The only thing you must not do is sign a Deed of Acknowledgement that NR may send you. They may try to trick you into going for voluntary repossession because it's quicker, and will as you to sign a DoA for this to happen. If you sign it you will be liable for any shortfall because you're already BR.

panickymum

Thans Peachy that's really helpful. Do you know, if I stop paying the mortgage and sit it out til its reposessed, will the OR now take that money as part of an income payments agreement i.e. will they now see it as disposable income, or will I be able to save for 6 months rent? I do not have an IPA at the moment as I do not have disposable income currently.

cheers

fiveyearplan

Also, if you do move out be sure to ask the council for a 100% discount on council tax for 6 months. After the 6 months has ended, if the house hasn't been repo'd yet, you will have to pay 50% of the council tax.

You don't get the discount though if you don't inform them.

peachyprice

panickymum wrote: »

Thans Peachy that's really helpful. Do you know, if I stop paying the mortgage and sit it out til its reposessed, will the OR now take that money as part of an income payments agreement i.e. will they now see it as disposable income, or will I be able to save for 6 months rent? I do not have an IPA at the moment as I do not have disposable income currently.

cheers

You can save it for rent. It's a question I asked my OR, and as long as you're going to use it for future housing costs you can still include it in your SoA.

Although I would still remove the money monthly to another account rather than leaving it your current account so your outgoings keep in order.

fiveyearplan

I agree with moving the money out too. I think this is something that ORs would decide independently and some may not allow it. Its just one of those things I wouldn't want to risk.