Disc. B/rupt wife wants separation neg equity

Brokenback_2

Hi,

I need some advice regards mine and my wifes financial situation. As of October i am now a discharged bankrupt but now my wife is unable to see
an end to our debt problem and would like to separate on a trial basis to see if things could improve in the future.

Our house is worth approx 170000 We have a mortgage of 131000 and a second secured loan of 73000 [76000 to get out of] my wife is under the impression that if we could sell the house there would be equity of just under 40000 which she would like three quarters of. My understanding is not the same , i believe as the second loan is secured that any equity would be taken by the second loan company and still leave a debt of 36000 im i right?? As a bankrupt as well i would not be able to get a loan to pay of the 36000 either so if anyone has any suggestions as what we could do as i would like to be able to resolve this amicably with my wife and go for a trial separation as i believe it will help our relationship.

Regards
Brokenback

fermi

Brokenback wrote: »

i believe as the second loan is secured that any equity would be taken by the second loan company and still leave a debt of 36000 im i right??

Yes.

As you have been BR, then you would not be liable for it. She would be liable for the lot.

Mrs_Malaprop

You are correct, the mortgage co. gts first dibs, then the secured loan will get the rest. If yuosold the house then there would be a shortfall and as a bankrupt you would not be responsible for paying it but your wife will. This stands even if you are discharged as you liability for the debt would fall into your bankruptcy. Also the loan co. may stop the sale of the house if they won't get paid.

Brokenback_2

I thought so , so that info will go down like a lead balloon... there is no way i could take on 36000 anyway [although my wife thinks my family could and should help me out - but they wont] i cant see any other way to get out of this without it costing even more eg: solicitors and repossession....

Mrs Malaprop, thanks for that i also suspected that the second loan company would object to the house sale, well maybe she will have to stay put and not run away from it, me and the kids...

Brokenback_2

Could she ask me to get her name taken of the mortgage and 2nd loan [not that i would dream of it] but i dont know where that would leave me if it was to happen or if it could be possible at all anyway...

Mrs_Malaprop

You would have to remortgage and I doubt considering your record you would get any mortgage company to accept you in the current climate.

I am assuming she has had the benefit of the things that these loans etc. have been used for. If so then I am afraid she is going to have to suck it up like an adult and deal with it. If she were to go bankrupt as well then she would be in the same situation you are ref. the house. Sorry if that is to blunt.

tamarto

Selling the house seems pretty permanent to me! Not much of a see what happens kind of vibe there. :eek:

sizzler

Wow sorry mate sounds like a hard situation.

Some good advice from mour friends here.

Are things really that bad with the wife.

Reagrds sizzler

Brokenback_2

Hi,

Things are not great really but we are talking and not fighting still get on with each other i think she just wants to get away from what is giving her the most pain which is the financial situation but because of what i did to get us into debt [unfortuneatly gambling] she has out of the blue really said i dont love u anymore because of wot u did and all i can see is 20-25 years of debt ahead and all my dreams dashed. She has said she wants a trial seperation and see how things are in 1 year or so. She says she still cares about me and all i can do is go along with that and hope she comes back to me.But she is also very anti towards the kids too so i think there could be more to it than just the finances. Maybe Mid Life Crisis or Hormonal and cant cope. [History of hormonal probs - her mum] But on the Financial side of things she wants 3 quarters of the equity left over from the mortgage which wont happen coz the second loan company will take that and still have 36000 owing so will probably block any sale in the first place. It will make things awkward and i think she will blow her top but i cant see anythin else i can do.

Brokenback_2

To Tamarto.

I hear wot you are saying but the house is whats causing her all
the grief in the first place. If the debt wasnt there i believe she
would be a lot happier in her own life. We been married for 17 years
and until 8 weeks ago i thought we were still ok, granted i had gambling
probs in the past but i was under the impression that we had dealt with
it and moved on but it dosent seem that way coz all she sees now is a future with massive debt and just wants to get away from that...

sizzler

Hi have you got any arears on mortgage?

What would your plans be if you let house go? renting or live with friends or famillt. Have you talked to mortgage company to see if they can help.

Regards sizzler