Totally confused???

whitey31

Ok i think i am getting my head round this, we have only 5000 worth of debts which is not much but we are going into rented and letting repo happen on house due to wage decrease and basically renting is cheaper then mortgage repayments and secured loan as our outgoings will be come higher then in comings once wage loss.
So our house is only worth 95,000 at a guess and our mortgage is 109,000 interest only, and we have a secured loan for 30,000 so once repo has happened and the mortgage company sell eventually we will have a shortfall on mortgage and secured loan, so at this point can we go bankrupt??

markandkate

You are probably better off going bankrupt before the repossession as the house will no longer be your problem once hte bankruptcy goes through. find somewhere to rent first, use the mortgage money to pay the bankruptcy fees. Try to do it before April 1 as fees go up then

whitey31

so can you go bankcrupt even though you do not know the short fall or do you just this in as your estate?

markandkate

If you are bankrupt the amount you owe is irrelevent

debtinfo

although you can only go bankrupt if you cannot afford your debts as they fall due. At the moment that is the £5,000. If you can afford these debts at the moment then you cannot go bankrupt just yet and would have to wait for the house to be repossessed and sold. If you cant afford them then you can go bankrupt and the shortfall will be added later.

whitey31

thanks thats what i thought, at the moment the 5000 is no problem as its managed my CCCS but obviosly once partner takes wage loss thats when we can not afford secured loan on house, we have a rental in place and going to let the repo take its course and see what happens with shortfall then go bankcrupt, buti understand the repo and selling could take ages!