going bankrupt

kito123

Hi All

My brother in law is in debt and just cant catch up. he's thinking of becomming bankrupt.

he split up with his ex years ago and purchased a flat which was way over priced. he then got a loan, credit cards, etc etc.

so, he has a flat that we paid 130,00 for - which is worth about 99,000. Mortgage, 650 per moth (not enough to cover what a tenant would pay). maintenance fees are also crazy.

25,000 loan

3,000 credit cards

can he just go bankrupt and hand back the keys to his flat? how does it work?

any advice would be great, thank you
kitty

confused76

hi there
please tell your brother in law to contact one of the free debt charities such as the national debtline, cccs or the cab. they will look at his situation and provide him with his options. get him to come on here if you can and we'll help if he has any other queries

skylight

The flat - you state WE. Is that you and he or just generically speaking? Who did he buy the flat with?

I echo Confused - he needs to get professional advice (he doesn't have to follow it.....)


But basically, yes. He can move out, hand the keys back at any point and go BR before or after he has handed the keys back. As long as he doesn't sign anything (it can change the liability of the debt). As he should't sign anything the repossession itself may take longer than anticipated.

And remember; whoever bought the place with him or is joint on his debts will become fully liable for those debts once he declares BR.