Will my friend lose there home if they go bankrupt?

polomint_2

Im in need of some advice for my friend, im so worried about him he is getting desperate. He is so badly in debt that he cant afford to eat every day! He has already gone down the road of managing his debts and paying off the minimum amount to credit cards etc but he just cant spread it any further! he has a job but it all goes out on coming in! He has his own home but it has negative equity and he has no other assets.

He has been advised to go bankrupt, but will he lose his home? He was under the impression he wont but I have a strong feeling from reading up on it myself he will as it will go as an asset to pay off his creditors.

Im very worried, can anyone offer any advice please and i will pass it on to him.

Thank you.

philnicandamy

bit of a read here

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

usually if place is in - equity then unlikely the receiver will take...although you may need to buy the recievers beneficial interest

maxmycardagain

it depends on the equity he has in the property, if the OR decides its worth having he will take it, if not then its safe

Feelingfoolish_3

Hiya

If he is negative equity then he has no assets. OR wants cash and if there is no cash in the property then not interested however the OR has 3 years to wait and see if equity rises hence the opportunity to buy back the 'potential' equity