Help needed for stressed person please

BlueIsTheColour

Hi Guys,

I hope someone can help me, am sure the answer is easy but am so stressed right now as my partner of 7years told me yesterday he was leaving me, we had had some problems but I didnt expect that....

Anyway, we own a flat, bought on a stupid (in hindsight) 75/25 scheme from Barratts, currently in £30k at least neq eq from purchase price. The 25 bit is secured by way of a 2nd charge.

We are in arrears with the mortgage and so am wondering if the place was repossessed, there would then possibly be mortgage shortfall and the 2nd charge shortfall, if I went BR would they be included, and would I have to wait for the mortgage to sell the place to know what the shortfall was to then go BR?

As mortgage and charge is in joint names I am assuming we would both have to go to BR as if I did it solely they woulld then presumably "look" for him to get him to repay it?

Thanks in advance for any help, right now, I feel so broken but know I have to be practical too....

dalip

BlueIsTheColour wrote: »

Hi Guys,

I hope someone can help me, am sure the answer is easy but am so stressed right now as my partner of 7years told me yesterday he was leaving me, we had had some problems but I didnt expect that....

Anyway, we own a flat, bought on a stupid (in hindsight) 75/25 scheme from Barratts, currently in £30k at least neq eq from purchase price. The 25 bit is secured by way of a 2nd charge.

We are in arrears with the mortgage and so am wondering if the place was repossessed, there would then possibly be mortgage shortfall and the 2nd charge shortfall, if I went BR would they be included,yes and would I have to wait for the mortgage to sell the place to know what the shortfall was to then go BR?i dont think so but someone with more knowledge on houses will confirm

As mortgage and charge is in joint names I am assuming we would both have to go to BR as if I did it solely they woulld then presumably "look" for him to get him to repay it?yesany joint debts fall to the other non bc person so you would both need to go bc to avoid this

Thanks in advance for any help, right now, I feel so broken but know I have to be practical too....

Please ring either cccs or NDL(numbers in my sig below) or make an appointment with your local cab. Yu really do need "expert" advice before you make such a enormous decision.Dx

BlueIsTheColour

Thanks Dalip, I will ring CCCS, I had done that a while ago about general debt problems but the situation has now changed somewhat.

So, if I go BR and ex-OH doesnt, the mortgage and 2nd charge will then look to pursue him so does that mean my liability for those debts goes without them going in to my BR pot? It would then be his decision what to do I guess, am not sure he likes me too much at the moment anyway so this would just add to that...

Thanks for replying

fermi

The bankruptcy would end your liability for any present or future shortfall. A provable debt in your bankruptcy.

As your ex has joint liability though, the secured lenders could also claim against him for all of it.

If the flat was repossessed after your bankruptcy then you would need to be careful what paperwork you sign. Mortgage/secured lenders may try to get you to sign a "deed of acknowledgement" for the debt. You must not sign that, even if it means they have to repossess through the courts.

As Dalip says, take professional advice.

BlueIsTheColour

Thanks Fermi, I am so up in the air at the moment, but I need to be practical, and I guess he's made his choice to look after himself, so I need to do the same, so if BR is for me and it means he has to then decide whether to do it or not, then so be it.... He is reluctant to do it cos he would lose his pride and joy sports car.

Small steps will take me there I guess...

fermi

BlueIsTheColour wrote: »

Small steps will take me there I guess...

Yep. As always on these boards. On DFW or here...

BlueIsTheColour

I think I'm just struggling with the size of the mountain right now, and I cant see a way out of this situation.

My emotions are all over the place, from crying my socks off to trying to be strong and contacting solicitors to try to get to the bottom of what would happen to the 2nd charge shortfall in my 75/25 scheme if I was able to sell privately, it seems no-one knows :rotfl:

This forum is invaluable for support and advice and I thank the day I came here and started posting

BlueIsTheColour

Hi guys,

Another question now, if I go bankrupt whilst still in the house, can anyone tell me what would happen? Would the 2nd charge then remain against the property and would I have to go through that process of someone buying the B.I etc etc, assuming the mortgage company would allow that? So going BR and remaining in the house wouldn't be beneficial?

Also with regards to cars, obviously they would take mine as its worth about £6k, but has finance O/S on it anyway, but I need a car for my job as I have to travel to do it, would I then be allowed a car? And if so, where I would be able to get the money from to buy it? Would I have to hope a family member would pay for it?

Sorry for so many questions, but my relationship is now over and I have to be realistic and build plans.

I was worried about my work firing me but they have said they cant see any reason to do that and would even provide evidence to the OR about my need for a car.

Thanks in advance for any help

RAS

Hi

If you need a car to stay in employment, then the OR will allow you a sum to buy and run one, even if you have to lose the one you already have. If the existing car is HP, then you may be able to keep that (as it is secured debt).

I do recall one lady having her very low value car "taken", who then pointed out she would lose her job and she was allowed to keep it without a formal appeal.

Would your ex consider buying the BI, or is he not interested? Will cost about £225 for the fees plus £1.

BlueIsTheColour

Thanks Ras, no he wouldnt want it nor could he afford it, he will also be going the BR route am guessing....

I def do need a car to do my job, so are you saying that the OR would give money or would allow me an amount of money? Am very confused, thats nothing to do with your post btw, its just my mental state right now!

I had thought that the car was on HP but on closer inspection I think it is a fixed term loan, with more O/S than the car is worth so am guessing they would take the car and sell it for the "Pot", not that there would then be anything else left for the pot....

Apologies for appearing a bit dim, I think my head is still mushed up from us splitting up, it only happened a week ago and we are still sharing this place until he can move out.....Major stress!

blind-as-a-bat_2

I have not seen that scenario, but in theory you are correct, if it is a personal loan, that is treated as any unsecured debt, and the car as an asset at whatever its market value is.

but this is where it gets a bit daft, as also if you follow that theory, if they do take the car, but you can saisfy them you need a car, by the letter of there own guidelines they must allow up to £2000 from the prosceeds of the sale to buy a suitable replacemant.

Now that sounds crazy, but by the letter of the OR guide is correct, obviously this an odd situation, and will be intresting to see what they do