if we go bankrupt, will we lose our home ?

tallie11

My partner has heavy credit card debt, and we have some equity in the home, if we go the bankruptcy route, does this mean we will lose our home ?
Thanking you in advance.

flexrider

Not necessarily. Your house (legally known as your homestead) may be a protected asset. In fact, filing for bankruptcy may help you halt a foreclosure being taken against your home. However, canot make any guarantees about property you will or will not lose; it depends on the details of your case/bankruptcy

best speaking to someone finicial about it,

http://www.thinkglink.com/article/2005/03/04/creditors-taking-my-house

RAS

It rather depends whether the mortgage cost is more than rental locally, whether one ofr both of you go BR and whether you can afford to buy the Beneficial Interest from the OR without selling up.

Speak to one of the debt charities first.

RAS

flexrider wrote: »

Not necessarily. Your house (legally known as your homestead) may be a protected asset. In fact, filing for bankruptcy may help you halt a foreclosure being taken against your home. However, canot make any guarantees about property you will or will not lose; it depends on the details of your case/bankruptcy

best speaking to someone finicial about it,

Hi

Highly misleading as the web-site cover US law not UK law.

flexrider

RAS wrote: »

Hi

Highly misleading as the web-site cover US law not UK law.

e

doh! i got the wrong website sorry for my info

tallie11

I think it's best we speak to a debt councillor as well , it just makes it so real then. Our horrendous debts are hidden away from everyone.

Our mortgage is about 4oo pounds , the rental we would get for our house is about a grand ! Unfortunately we are unable to move out , as gov are kindly paying the interest on our mortgage (I know this sounds really bad as well, but we were both made redundo from our city jobs). anyway i'm babbling ....

thanks once again

Kohoutek

The law relating to the area you're referring to is complicated. By far your best option is to get professional advice.

I would recommend making an appointment at your local citizen's advice bureau -they will have people who specialise in advising people about consumer debt. It's free.

http://www.citizensadvice.org.uk/index/getadvice.htm

Many high street law firms also offer free half hour consultations. If you make this kind of appointment, you will not be charged.

http://www.lawsociety.org.uk/choosingandusing/findasolicitor.law?=lshome

jellygirl_2

If there is equity in the house (deemed enough), you are likely to be forced to sell it by the OR - or if its little, the OR may wish to wait up to 3 years to see if house prices rise and you may have to sell it at a later date. Either way, during the BR you will lose entitlement/ownership of the property - you may be able to by the BI in the property after BR if the OR has not interest in it.

RAS

tallie

Start by speaking to one or more of the debt charities listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help

they may then recomend that you speak to an IO, but first speak to them.

peachyprice

flexrider wrote: »

Not necessarily. Your house (legally known as your homestead) may be a protected asset. In fact, filing for bankruptcy may help you halt a foreclosure being taken against your home. However, canot make any guarantees about property you will or will not lose; it depends on the details of your case/bankruptcy

best speaking to someone finicial about it,

http://www.thinkglink.com/article/2005/03/04/creditors-taking-my-house

Sorry, but US bankruptcy laws do not apply here in the UK

skintflint103

Hey flexy you got lost pardner , but at least he meant well! O.K. if your house is not going to yield more than £1,000 after 3% costs of sale you keep the house under 'de minimis rules' . The OR will not want to force a sale if it means a family homeless for the sake of a few quid. They don't have horns! They have 3 years to deal witht his ,if there is a huge amount £10,000- plus they give 12 months to sell . If it is in low or negative equity they will deal with it within 36 months. you need to get it dealt with asap as prices are going up