Any way around this mess? - Mortgage shortfall if to sell

GDB2222

cottlad wrote: »

If my wife filed and succeeded in making herself bankrupt would she be chased for cash in the future? Can they say take a percentage of future earnings? Or once bankruptcy is confirmed does she start back at zero with nothing owed? Sorry if these q's are dumb...... i'm reading through some literature at the moment and will probably be a bankruptcy expert soon lol.

She would normally be discharged after one year, and that's it. An order could in theory be made for part of her earnings for the two years after that, but it seems unlikely as she hasn't done anything particularly unusual.

As for the joint bank account that's in the red, she should tell the bank to freeze it so no more gets drawn down.

DPJames

If it's pointless your wife getting a job how about you stop gambling and get a real job. Not many people make i living gambling, and you being on a money saving website suggests you're not one of the lucky/talented ones.
Get a job, pay off your debts. Simples.

Sorry if that sounds harsh, but it does seem a bit obvious.

cottlad

DPJames wrote: »

If it's pointless your wife getting a job how about you stop gambling and get a real job. Not many people make i living gambling, and you being on a money saving website suggests you're not one of the lucky/talented ones.
Get a job, pay off your debts. Simples.

Sorry if that sounds harsh, but it does seem a bit obvious.

Im making more playing poker (call it gambling if you must altho longterm it's a game of skill) than i could by working. I have done for the last 3 years or so. Getting a job is in the pipeline though and paying this off fully is an option and would be preferable. Neither myself or the missus wants her to go bankrupt...it would be the last resort.

GDB2222

cottlad wrote: »

Im making more playing poker (call it gambling if you must altho longterm it's a game of skill) than i could by working. I have done for the last 3 years or so. Getting a job is in the pipeline though and paying this off fully is an option and would be preferable. Neither myself or the missus wants her to go bankrupt...it would be the last resort.

I have heard of people making quite a lot of money playing online poker. I guess it becomes harder to make money as the competition hots up.

If you want to sort your wife out without her going bankrupt, you really need to make sure that you sort everything out in one go - pay off the bank a/c, sell the house, and pay off the mortgage. You need to get the ex to sign any papers needed or give your wife a power of attorney. How do you know what else she's let herself in for and perhaps forgotten? Maybe there's another account your wife thought was dormant but the ex has been digging into? There's no point sinking 20k into this only to find afterwards there's another 20k you didn't know about. At some stage you'll need a solicitor to tie it all up, so that's another lot of fees.

You can try to negotiate with the bank and the lenders. Point out that your wife didn't authorise part of the loan. But your trump card is simply this. You offer say 50% of the outstanding loans in full settlement from your funds, but if they decline that you point out that your wife will go bust and they get nothing. Of course, you have to really mean that in order to be able to negotiate, and you have to get all this teed up and ready to go ahead at the same time as the house sale proceeds. Lots to do!

One advantage of bankruptcy is that it all the complication just goes away. It could actually be the least stressful option, especially if you can't trust the ex.

cottlad

Thanks for that GB. Lots to think about but some of my worries and thoughts confirmed and something to work from. Cheers

silvercar

Good advice from GB. Only wanted to add that, for it all to go away, you need to go for voluntary repossession first then bankruptcy. Secured loans would otherwise be excluded from the bankruptcy, leaving you with the house problem.

cottlad

Ok we are going to see if the lenders will accept the 250k offer as full and final settlement. There is a possibility to raise some limited extra funds but we will offer this extra payment (on top of 250k) as an option to avoid voluntary repo and bankruptcy should they not accept the 250k nor suggest a solution that is acceptable. Do you think this is a valid plan? Is there anything i definitely should or shouldn't mention in a letter? I've just typed up a draft and can post it for comment and criticism if needed.

Thanks again.

GDB2222

I would make great play of the fact that the mortgage has gone from 220k to 270k without your wife's agreement. In fact, thinking about it some more, how did that happen without her signature? You'd need to be sure how that came about and what their explanation is, but in the meantime I'd be inclined to start at the £220k figure. You might want to instruct a solicitor to write on your behalf about this.

fathippy

Just out of curiosity, have you tried renting the place out? You have discussed all sorts of options, but surely if you got tenants for even 12 months that would give enough time to make a sensible decision, or even get a better bid, rather than "kitchen-sinking" it.

I suspect the answer may be that you would not achieve a decent rent and that it is sold as an owner-occupier, but I have never understood this logic. Do you mind if I ask where in the country this is?

Richard_Webster

She thought the mortgage stood at about 220k but was upset to find out he'd remortgaged (once without her knowledge) to 270.5k

If he forged her signature and re-mortgaged without her knowledge then that can be set aside - but it would be expensive to got to court to do so.