Can I keep my house if i go bankrupt

Mike_St_Helens

Hello, me again... Sorry to post another thread, but there are big issues and the more advice I get from you all the more im settled in the decisions im taking.

Position is, a hell of a lot of debt, creditors taking me to court etcetc... ina DMP at the mo with 1000:o years to clear the debts.

Employed, Mortgage is 80k, house is worth £75k ish.

If i went for bankrupcy would I loose the house, or if anyone could give me th process or rules id follow to keep it ... That would be greeeeat !

many thanks, and sorry for mithering again:wall: :wall:

Mike

Broken_hearted

It depends on a lot of factors, but yes its a risk.

CLAPTON

i've forgotten your situation...is it a joint mortgage?

anyway you say it has negative equity...it is usually possible to 'buy' the equity in this situation for a nominal £1.

Mike_St_Helens

Yeah, its joint, as is all the debt etc etc....

Can they buy the interest in the property.... who deals with this, does it cost a lot ?

Thanks for reading.

skylight

With bankruptcy, if the *other* debt is in joint names, the creditors will come after the other person for the full amount.

See National Debtline (website link at the top of the page here) for lots of info and booklets (pdf ones) etc on the whole matter.

fatbelly

If your home has very little equity in it (up to a set level of £1,000), then the court will not be able to order a sale or put a charging order on your property. They still have up to 3 years to see if your house has risen in value and is worth selling. Try and come to an agreement with the Official Receiver over your beneficial interest as soon as you can to avoid this happening.

If you cannot save your home through someone buying out any beneficial interest, the property is likely to be sold.

If you have a mortgage or secured loan on the property the monthly payments still need to be maintained to stop your lender taking possession action.

CLAPTON

assuming you are up to date with the mortgage, there is no benefit to anyone in forcing the sale of the house as its in negative equity...so you may be able to keep it. but it will be up to the OR what actually happens.

bingo_kitty

If your home has very little equity in it (up to a set level of £1,000), then the court will not be able to order a sale or put a charging order on your property. They still have up to 3 years to see if your house has risen in value and is worth selling. Try and come to an agreement with the Official Receiver over your beneficial interest as soon as you can to avoid this happening.

If you cannot save your home through someone buying out any beneficial interest, the property is likely to be sold.

If you have a mortgage or secured loan on the property the monthly payments still need to be maintained to stop your lender taking possession action.


Hey, This is mostly correct.

With a property we firstly work out it's value and then via land registry charges already leavied against it i.e mortgages and secured loans. Your interest is half of what the property is worth if your share is less than £1000 it is unlikely that a restriction will be placed upon the house. However it is likely that if your house is worth £75k your interest is £37k approx. Howeveris your property has negative equity then it may be possible for a third party to buy the interst. You'll need to get an independant valuation [so you and the OR agree on the value of the interest] and there are solicitors fees [£211 at the moment] if it is negative equity the nominal fee is usually a shiny pound.

It used to be that the OR/IP held the interest inthe property indeffinately but this was blatently unfair and so legislation has changed. Now to work out how long the Or has to deal with the property you basically take the date of bankruptcy order plus 3 years minus 14 days. If the property isn't delt with by this date the interest will revert to the bankrupt [likely to be former bankrupt by then]

However, I have only ever heard of properties not being delt with asap in old old cases. Dealing with the property and appointing an IP to deal with them is *very* high on the "to do" list with cases nowerdays.

and you absolutely have to maintain payments to your mortgage company - the OR cannot prevent the company from exercising it's right to reclaim the property - only to claim any profits for the benefit of your crediors.

Bit garbled - hope you followed - hope it helped. If you need advice the insolvency service have a helpline - check out the webpage https://www.insolvency.gov.uk - which can advise - or CAB etc.

Hugs

Mike_St_Helens

thats great !!! Thanks

fatbelly

bingo_kitty wrote:

Hey, This is mostly correct.

I'm pleased it was mostly corect - I copied it from the National Debtline site!