Considering Bankrupcy

Falze

*BUMP* for advise please. Thanks.

confused76

Falze wrote: »

After taking further advises bankruptcy is our best option. We are now considering not keeping the property, as we would be better off renting. We are currently on interest only and when the secured loan is taken into account we will be £250 a month better off to rent. (without Buildings Ins & any buildings maintence to take into consideration.

A;though we are obviously attached to our house, it feels like a noose around our neck and a complete fresh start would be best.

A perfect rental oppertunity has opened up and they are happy with our circumstances (subject to depoist).

Can i move out of the house and stop paying the mortgage and secured loan and start renting. The house would obviously be repossessed in time or do i hand back the keys. yes you can

When is the best time to go BR ? When we move out or when the house is repossessed and the mortgage / secured loan shortfall is asked for. i don't think it matters, if the shortfall isn't known it will still be included - i think. hopefully someone will confirm

If we declared bankrupt at the time of moving out, would the Mortage shortfall still be included in the BR, despite us only probabley being 1 payment behind. as above

Please help and advise what you think is the best way to handle this ?

Falze

hopefully someone will confirm what they have done in this situation..

Sunnylooloo

Hi Falze

As I can see everyone had really answered all your questions, one thing to consider when moving out of you home (and someone please let me know I if I have said this correctly) is that you will still be liable for Council tax (although you can get a 6 month exemption) and buildings insurance. Someone will also let us know for how long you need to pay this for (not sure if it is until the property is sold or until the mortgage company accept the liablilty - can someone clairfy that for me...???)

It is hard to leave a home - but like you I feel mine has become more of a hinderance and as you have said lots of nice rentals out there.

Good luck!

LL