voluntary repossession now br - advice?

starbies

hi,
it's been a while since i posted but went br in may and we're now trying to sort out the house. oh did not declare br but we are now in negative equity - we can transfer my interest in the house back for £1+ costs but.... for various personal reasons we really do not want to live in the house any more and are desperate to move away and make a fresh start. we've now been offered a lovely place through a friend on as long term rental as we want so we really have to make a decision.

If we voluntarily hand the keys back I presume oh will need to declare himself br or be liable for the whole mortgage amount?? is there any other option???? Oh has a dmp for £3k himself and has a pretty awful credit rating due to financial association to me so I suspect the impact on him declaring br now won't actually change his financial situation much as he can't get any credit or a cheque account etc at present and we've been living with cashcard accounts for a couple of years now so we are used to that. However we feel both feel somehow really morally wrong handing the keys over just because we 'want' to get out (even though being there has caused a lot of issues and depression) as at the moment we have no mortgage arrears.

thanks in advance
starbies

fermi

starbies wrote: »

If we voluntarily hand the keys back I presume oh will need to declare himself br or be liable for the whole mortgage amount?? is there any other option????

Assuming that they are on the mortgage, then yes.

How big is the 'possible' shortfall in relation to the DMP?

starbies

yes it is a joint mortgage.
the mortgage is 116k and the house is now worth 105 to 110k. oh's dmp is 3k approx.

starbies

i'm feeling very foggy and confused about this now... Does anyone know what would happen to oh if he didn't actually declare himself br and we voluntarily had the house repo'd? would he be forced to declare br anyway or would he end up with an earnings deduction via the courts?

hopefullyhappy

hi. me nd ex partner had home vol repossessed and when they sold it there was a mortgage shortfall of £63000. We each agreed a monthly payment with them. i have recently declared myself BR so it's now upto him to agree payments with them.

x

fermi

starbies wrote: »

i'm feeling very foggy and confused about this now... Does anyone know what would happen to oh if he didn't actually declare himself br and we voluntarily had the house repo'd? would he be forced to declare br anyway or would he end up with an earnings deduction via the courts?

He wouldn't necessarily be forced to go BR.

If he wanted to he could, but it depends on him and his circumstances.

In theory he could be taken to court for the shortfall. If he didn't pay what the court ordered then an order to take money from earnings could be made. That is very very very very very rare though. If you respond to stuff from the court properly, it won't happen.