problems x20

debt20

Hi, I was recently made bankrupt, I own a house with my partner and it now has negative equity to the value of £20k there is also an attachment to the property for a car i had from a dissolved business to the value of £28k. Here is my dilemma how do i get out of the house without my girlfriend becomming liable for the negative equity etc. Our mortgage payments are horrendous too but we cannot remortgage until June 2010. Can i just sell the house and put everything on the bankruptcy or can we just hand the keys back and walk away without any repercussions. Advice please...

Cannon_Fodder

Get to the debt-free forum. It has wider experience of these issues.

Don't not walk away. The debts will still follow you.

Senior_Paper_Monitor

Sorry to hear of anyone in your and your partner's position - and very sorry to say I see no way out for your partner.

The mortgage is a joint and several liability and I see no way any lender will release her from that.

The charge for the car is the least of her problems if nothing would be left from repossessed value of property.

You both need to go to professional debt advisers/managers be they the free or fee/commission based (be careful who you choose - Debt Advice Bureau probably the best of the free services / if you go the commercial route ensure the firm is member of Debt Management Standards Association or Debt Resolution Forum).

You will also obtain considerably more experienced advice than mine elsewhere on this site including 'Bankuptcy & living with it'

Good luck to you both

Joe_Bloggs

I agree with Cannon Fodder and Senior Paper Monitor but I suspect that your bankruptcy trustee is supposed to handle things like this. I don't really know the answer but I did find this link from www.insolvancy.gov.uk
J_B.

silvercar

You can't sell the house if you are in negative equity. (Unless all lenders charge holders agree, but they won't.)

You could hand the keys back voluntarily, but that would mean you could be chased for any shortfall. Both you and your girlfriend would be liable for the whole of the negative equity plus interest plus costs. The onyl way round it is to hand the keys back and then both go bankrupt. Not a decision to be taken lightly or without advice.