Bankrupt Advice

bing0bango

Ive got myslef in a financial nightmare and have been limping along for the last few years, but now im facing a 10k pay cut at work due to changes in our out of hours working that will leave me unable to make my commitments. I have around 55k of debt including a secured loan with about 22k outstanding, a personal loan with 15k and higher purchase agreements for 2 cars totalling around 16k. I have a mortgage but there is no equity in the house after the 122k outstanding on the first mortgage. Ive been reading up on bankruptcy as its begining to look like my only option, however reading has left me with more q's than answers.

Can anyone please help me on the following;

I have an NHS pension that ive been paying into for 8 years, is going bankrupt likley to affect this? Clearly I wont be drawing on this for at least another 30 years.

Im a registered health proffessional, with the health proffesional council does anyone know if going bankrupt will affect my registration?

Im not interested in keeping the house as theres no equity anyway, will this and any short fall in the first mortage be included in the bankruptcy or could I become liable for any shortfall in what its sold for and what is owed at a later date?

I appreciate any advice anyone can offer me

Regards Steve

philnicandamy

bing0bango wrote: »

Ive got myslef in a financial nightmare and have been limping along for the last few years, but now im facing a 10k pay cut at work due to changes in our out of hours working that will leave me unable to make my commitments. I have around 55k of debt including a secured loan with about 22k outstanding, a personal loan with 15k and higher purchase agreements for 2 cars totalling around 16k. I have a mortgage but there is no equity in the house after the 122k outstanding on the first mortgage. Ive been reading up on bankruptcy as its begining to look like my only option, however reading has left me with more q's than answers.

Can anyone please help me on the following;

I have an NHS pension that ive been paying into for 8 years, is going bankrupt likley to affect this? Clearly I wont be drawing on this for at least another 30 years. shouldnt be an issue...mine wasnt

Im a registered health proffessional, with the health proffesional council does anyone know if going bankrupt will affect my registration? not sure you'd need to check with them...although again I wouldnt imagine its a problem i've known a fair few people in the primary care trust i'd been based with bankrupts

Im not interested in keeping the house as theres no equity anyway, will this and any short fall in the first mortage be included in the bankruptcy or could I become liable for any shortfall in what its sold for and what is owed at a later date? yes it will as long as you SIGN NOTHING they ask from the mortage provider or you could leave yourself liable for the lot at a later date

I appreciate any advice anyone can offer me

Regards Steve

fair bit of a read here as well
https://forums.moneysavingexpert.com/discussion/1056083

and welcome to the madhouse steve! :rotfl:

Angiepange

Steve, the shortfall from your mortgage when the house is eventually sold will be included in your BR as long as you don't sign any forms ie. shortfall sale form that admit to liability, have a look at this below from IS website, more info in the BR sticky at the top of the BR forum page.

Question: If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?Answer: A debt which is secured by a mortgage or a charge on a property is still a provable bankruptcy debt. The mortgage loan company is "a secured creditor" which means they have rights over an asset, the
house, and can require the asset to be sold to pay their debt. These rights are not affected by the bankruptcy. On the making of a bankruptcy order the mortgage loan company could
make a claim in the proceedings but, unless it wished to give up the security, could only claim for any (estimated) shortfall.
If you continue to live in the property it is likely that you will continue to make payments to the mortgage loan company to avoid the property being re-possessed. When the property is eventually sold any
shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

Your bankruptcy does not affect the obligations of any joint owner who has not been made bankrupt to repay the mortgage loan debt or any shortfall, as they are still liable for the whole of the debt.

After the date of the bankruptcy order the mortgage loan creditor may ask you to sign a "deed of acknowledgment" of the outstanding debt. If you have signed such a deed the mortgage loan creditor can take action against
you to recover any shortfall following the sale of the property.
You may also find it helpful to read the Insolvency Service publications titled 'What will happen to my home'