At least 2 out of 3 people declared bankrupt are not home owners.

Really2

Just looking at the credit action stats.

One person is declared bankrupt every 3.97 minutes

A house is repossessed every 11.5 minuets.

Using a very flawed and basic calculation that means around 2 in every 3 bankrupt people are not home owners (as bankruptcy would result in a repo)

It is likely to be more than that as all repos are not through bankruptcy.


Looks like house owners were not the only "debt junkies".

lostinrates

Isn't it possible for one person in household to be declared bankrupt but the house to be in another household members name? One of the plces I looked at (and gave details of to another MSE user) it turned out was a three person household (reduced from four people): retired parents, and son. It seems the mother and the departed partner were not bankrupts, then the mother became so and the partner left....

...not that I dig when considering making an offer, or anything.

Really2

lostinrates wrote: »

Isn't it possible for one person in household to be declared bankrupt but the house to be in another household members name? One of the plces I looked at (and gave details of to another MSE user) it turned out was a three person household (reduced from four people): retired parents, and son. It seems the mother and the departed partner were not bankrupts, then the mother became so and the partner left....

...not that I dig when considering making an offer, or anything.

You can not sign over a mortgaged house or one that as secured loans against it. (you could give a mortgage and loan free one to someone if you wanted to)

You can add someone to the mortgage, but that would not really help when/if one of you goes down the pan.

This is based on personal bankruptcy some one could be declared bankrupt in a house but if they don't own the house they are not a home owner.
If they are the mortgage owner it would be a fairly certain repo.

lostinrates

Really2 wrote: »

You can not sign over a mortgaged house or one that as secured loans against it. (you could give a mortgage and loan free one to someone if you wanted to)

You can add someone to the mortgage, but that would not really help when/if one of you goes down the pan.

Thanks. I think this one (which was a repo) was in the name of the mother....can't remember now. What I'm rally asking is clarification over whether one person in a household could presumably go bankrupt yet remain living in the house if its not ''their'' house normally (as in example above) e.g. could DH buy our house, then I alone go on a plastic spree?

Thrugelmir

Really2 wrote: »

Just looking at the credit action stats.

One person is declared bankrupt every 3.97 minutes

A house is repossessed every 11.5 minuets.

Using a very flawed and basic calculation that means around 2 in every 3 bankrupt people are not home owners (as bankruptcy would result in a repo)

It is likely to be more than that as all repos are not through bankruptcy.


Looks like house owners were not the only "debt junkies".

Why would bankruptcy result in a repo?

If there is equity in the property. The property could be sold to realise the equity, and this could be used to discharge the mortgage and secondly reduce other debt. This all prior to actual bankruptcy.

Repossession is only where the lender has taken the borrower to court.

Really2

lostinrates wrote: »

Thanks. I think this one (which was a repo) was in the name of the mother....can't remember now. What I'm rally asking is clarification over whether one person in a household could presumably go bankrupt yet remain living in the house if its not ''their'' house normally (as in example above) e.g. could DH buy our house, then I alone go on a plastic spree?

Yes if you are not on the mortgage you are not the home owner.
But also you would not be able to secure any loans against the house either.

But that would then back up the home owner being responsible and you not.

ninky_2

from a brief perusal of the bankruptcy threads i don't think you always lose your house if you are declared bankrupt. bankruptcy will not clear secured debts and if you can prove you can continue to cover the mortgage it seems you get to keep the house!

i still don't really understand how people go bankrupt when they still have assests / income. bankruptcy rules in the uk seem extremely lenient. but then so are lending laws. you can't tighten one without tightening the other. personally i'd get rid lending and bankruptcy.

Thrugelmir

ninky wrote: »

from a brief perusal of the bankruptcy threads i don't think you always lose your house if you are declared bankrupt. bankruptcy will not clear secured debts and if you can prove you can continue to cover the mortgage it seems you get to keep the house!

i still don't really understand how people go bankrupt when they still have assests / income. bankruptcy rules in the uk seem extremely lenient. but then so are lending laws. you can't tighten one without tightening the other. personally i'd get rid lending and bankruptcy.

It is possible to keep your house for up to a year.

Bankruptcy and your House

Your home is one asset in bankruptcy that the trustee may have to sell in order to get your share of the equity to help repay your creditors. Your share of the equity in the property is the amount that you will personally be entitled to receive from the sale proceeds.
For instance, this will usually be the amount after:

• The amount outstanding on the mortgage and secured loans is repaid
• The costs of the sale have been paid
• Your partner is paid their share of the sale proceeds if they have a beneficial interest.

It may be possible to put off the sale until one year after the appointment of the trustee so that you have time to make alternative housing arrangements. This is time you may be granted if you have a partner or children living with you.
If you do not wish to lose your home then you may be able to get someone to buy your interest. There may also be exceptional circumstances where the court will not order the sale of the property.

lostinrates

ninky wrote: »

from a brief perusal of the bankruptcy threads i don't think you always lose your house if you are declared bankrupt. bankruptcy will not clear secured debts and if you can prove you can continue to cover the mortgage it seems you get to keep the house!

i still don't really understand how people go bankrupt when they still have assests / income. bankruptcy rules in the uk seem extremely lenient. but then so are lending laws. you can't tighten one without tightening the other. personally i'd get rid lending and bankruptcy.

I don't know anything about this. I o know, and reported here, that in chatting to two regional lawyer doing a lot of work for banks in the area banks were seriously puting off repossession. One of them told me that their boss said (following this?) he'd not expereinced this ''last time'' or before, this delay/trying to avoid repo so much. Good for the people in the house, in the main, but what does that mean on a wider scale?

Really2

Thrugelmir wrote: »

Why would bankruptcy result in a repo?

If there is equity in the property. The property could be sold to realise the equity, and this could be used to discharge the mortgage and secondly reduce other debt. This all prior to actual bankruptcy.

Repossession is only where the lender has taken the borrower to court.

Possibly, I said the maths were flawed but the chance of repo is higher when bankrupt (repayments are harder to meet).

But how many do if you are going to be bankrupt anyway it is best not to make yourself voluntary homeless................... Also how many think I am going bust shall I go bust for less and be homless?
Where will you live?

ILW

Really2 wrote: »

Just looking at the credit action stats.

One person is declared bankrupt every 3.97 minutes

A house is repossessed every 11.5 minuets.

Using a very flawed and basic calculation that means around 2 in every 3 bankrupt people are not home owners (as bankruptcy would result in a repo)

It is likely to be more than that as all repos are not through bankruptcy.


Looks like house owners were not the only "debt junkies".

Who is this person, and how do they find the time?