I think i may need to go bankrupt but really need some advice

io17773

Firtly this is my first post but have been on this website for a long time reading others but now i need help and advice

Ok My debt
this is wierd one

Firstly i'm not in a great deal of debt at the moment and can afford to pay the monthly bills i have( explain in a bit ), yes i have a couple of credit cards ( as most people do ) and i owe aprox 3,000
Here is my problem

I owned 2 houses one of which i live in now as my residence no mortgage arears all bill payed

however the other house was a problem i had the tennants from hell in there and it took me nearly a year to get them out via court orders

to cut a long story short i called the Mortgage company and explained i was under great stress beacause of the tennents and was becoming quite ill aswell, and they advised of my options
1. put more tennents in ( Not after my last experience )
2. keep paying the mortgage ( couldn't afford 2 mortgages )
3. put it on the market ( good idea but would still have to pay every month )
or
4. hand it bank to the bank ( this sounded like a good option )
The bank advised me they would have my interestes in mind as it was not be taken from me through bad debt but the fact that i was giveing up the house to them.
I basically made sure with phone calls and letters that i would not owe to much once sold.

The house is now going for auction on the 30th of this month !!!! £35,000 less than the Mortgage value

I don't have that and feel i have been well and truly Scr**ed by them

By the way it is the Bristol and west just to let you know

My questions are if we claim bankruptcy
would we loose the house my wife and kids are in now
me and my wife live apart now due to the stress caused by the last tennets etc etc
and there is no equity in the house
and both the houses are in joint names

And what else do you loose ? we are more bothered about the house and the car of which we pay all the time and on time

Any advise on what to do would be very very much appreciated

Thanks

Anthony

Susie54_2

Hello Anthony and welcome:beer:. Have no advice as I'm new too but folks on here are extremely friendly and full of good sense, and someone will be along quickly to give you some help.
Best of luck with your problems
Susie x

dollparts

Hi and welcome to the forum

Have a look through the sticky threads at the top of the board-they are full of info and advice and you will find many of your answers to the queries you have.

I would also suggest you contact one of the debt charities that can offer free advice specific to your situation-again these numbers are on the sticky threads.

In the meantime just ask! everyone will do their best to help

DP

dollparts

io17773 wrote: »

Firtly this is my first post but have been on this website for a long time reading others but now i need help and advice

Ok My debt
this is wierd one

Firstly i'm not in a great deal of debt at the moment and can afford to pay the monthly bills i have( explain in a bit ), yes i have a couple of credit cards ( as most people do ) and i owe aprox 3,000
Here is my problem

I owned 2 houses one of which i live in now as my residence no mortgage arears all bill payed

however the other house was a problem i had the tennants from hell in there and it took me nearly a year to get them out via court orders

to cut a long story short i called the Mortgage company and explained i was under great stress beacause of the tennents and was becoming quite ill aswell, and they advised of my options
1. put more tennents in ( Not after my last experience )
2. keep paying the mortgage ( couldn't afford 2 mortgages )
3. put it on the market ( good idea but would still have to pay every month )
or
4. hand it bank to the bank ( this sounded like a good option )
The bank advised me they would have my interestes in mind as it was not be taken from me through bad debt but the fact that i was giveing up the house to them. I would take that statement with a pinch of salt.
I basically made sure with phone calls and letters that i would not owe to much once sold.

The house is now going for auction on the 30th of this month !!!! £35,000 less than the Mortgage value

I don't have that and feel i have been well and truly Scr**ed by them

By the way it is the Bristol and west just to let you know

My questions are if we claim bankruptcy
would we loose the house my wife and kids are in now It's not a given, but you need to seek expert advice
me and my wife live apart now due to the stress caused by the last tennets etc etc
and there is no equity in the house
and both the houses are in joint names

And what else do you loose ? we are more bothered about the house and the car of which we pay all the time and on time

Any advise on what to do would be very very much appreciated

Thanks

Anthony

I would strongly suggest you contact CAB, national debtline or CCCS for advice on these matters. They will be able to better advise you from a professional perspective which is invaluable as your case is not straightforward.

tigerfeet2006

Hi and welcome to the board

io17773 wrote: »

My questions are if we claim bankruptcy
would we loose the house my wife and kids are in now If it is your main residence and you have no equity then the OR will not be interested in it and will give you a chance to buy his beneficial interest (BI) back.
me and my wife live apart now due to the stress caused by the last tennets etc etc
and there is no equity in the house
and both the houses are in joint names

Will you be moving back into the house?

And what else do you loose ? we are more bothered about the house and the car of which we pay all the time and on time Is the car on HP? The OR is not interested in anything that is going to fetch less the £1k really. Normal household goods are safe and no one comes to your house.

Any advise on what to do would be very very much appreciated

Thanks

Anthony

Have a read of the Bankruptcy Help sticky. The first post especially has lots of good info and links in it. Get in touch with the debt charities as a priority and get professional advice.

bugbabe1970

Hi, sorry to hear about the situation your in, its truly overwhelming sometimes isnt it.

When my husband and I went Bankrupt in 2003 we were allowed to keep the house as i had 3 little dependants, but had to sell it 2 years later and pay of the debts with the equity. Bankruptcy was a bad move for us as our debts were not written off and we lost our house, all for 20k worth of debt. We were given bad financial advice and we should have gone for an IVA, so my advice is to get good professional advice from someone you can trust.

There is light at the end of the tunnel though, because we paid our debts in full our bankruptcy was annulled and we were able to buy a house again last year.

Good luck

50broke

Hi, I would not go bankrupt over this, the bank will just chase you for the outstanding money, but there will a lot more options open to you Debt management plan etc, If I were you I would phone National debtline, or CCCS for free advice on this. Good luck.

peachyprice

It's highly unlikely you would lose your family residence if you were living there, however, the OR is not obliged to let you rent somewhere for yourself and continue to pay the mortgage and keep the house your wife is living in.

As for the repossessed house, is this in your sole name, or is it a joint mortgage. If it is joint the shortfall and any other joint debts you may have will fall entirely to your wife.

HTH

bugbabe1970

They took our house and I had 3 children. We had to get out and sell. It was awful.

debtinfo

Hi bugbabe, this poster is in a totaly different situation to your case as you had enough equity to pay all debts. Additionaly the rules changed in April 2004 and introduced the concept of a family home.

Hi Anthony If the property with the shortfall is in joint names it will fall to your wife to pay if only you go bankrupt. Properties that have either you or your spouse or ex spouse or children living in them are classified as family homes and as such the OR has 3 years to deal with them. The OR can in these case use the low cost conveyencing scheme which means that you can purchase the interest in them back for £1 (if in negative equity) plus the OR's costs of £211 (if jointly owned).

The key problem in your case is going to be your wife getting left with the shortfall if it is in joint names

io17773

Hi and thanks for all the reply's ther are most helpfull

i do have another one

we are thinking of getting back together and both morgages are in joint names if we were together would this make a difference
there is no Equity in the house the kids are in now.

And are we saying the OR Does not touch anything with a value of less than £1000

also it seems there are other options that people are talking about and i don't fancy the balifs coming round when i owe the bank 35K +
are these options any good ?

i seem to think Bankruptcy is the best and most viable