Bankrupcty and Keeping the House

andreap1984

After discussing in great lengths my BR options with my partner, hw is now also considering bankrupcty

He has a secured loan which was against a house which has no been repossessed

The secured loan is now attached to this house. The house is well into negative equity by around £30,000.00

Therefore my question is, if he decided to declare himself bankrupt would we be made homeless?

andreap1984

Bumping up, does anyone know?

milothewestie

you would be able to keep the house as long as you can pay the mortgage and secured loan, you cannot get rid of the loan as it is secured on your house and secured loans do not go into a bankruptcy,unless you decide to give the house up then the mortgage shortfall and the secured loan would then be included in your bankruptcy and you would owe nothing,but be homeless,hope that helps you,good luck

fiveyearplan

Milo is correct, if your OH is in that much negative equity, as long as the mortgage payment and secured loan are reasonable amounts the OR will not look to take your property. If the payments are much higher than rental propery in the area then that may not be the case. Have you sought advice from any of the debt charities like CCCS, CAB or National Debtline? Only contact those companies as they will not charge you for their advice.