Been left with no means to pay the mortgage

MichMoor

Hello All,

Have been on other forums but this one maybe more appropriate.

Basically I split from wife in June I moved out into parents, my wife stayed on and we continued to pay everything 50:50, mortgage, bills and loans.

She has moved out into rented and leave me with the mess. No way I can afford mortgage, have advised mortgage company of situation, have just missed one payment. I am ok staying where I am and have managed to get as far as I have by selling anything of value she did not take but now cannot afford mortgage anymore. Its on the market but no chance of selling it for what we owe, she is a joint signitory and knows consequances but wants to start a new life, with her new man.

Renting it out is not a option will not cover payment will only delay the inevitable, have decided have to let house go, but considering my options for the future. She has left me with a pile of other debt so maybe bankruptcy would be the best option.

But as a last ditch effort thought I would try this forum to see if anyone has any ideas, please no judgements, know I have been foolish and do not feel good about myself, just at end of tether!

Thanks for any input.

kev.s

i'd be seeking legal advice ASAP, bankrupcy can never be good, never experienced it though. good luck with it

Conrad

Legal advice will be a waste of time and money - it does annoy me when people suggest it. There is nothing to sort, end of.

Also lawyers do not have detail;ed knowledge of bankcruptcy usualy so talk out thier butts.

Bankcruptcy is likely the route I would go if in your position. A clean break. Your credit is ruined no matter what, at least bankcruptcy draws a line in the sand from which you can slowly rebuild your life.

I know what I'm talking about here, so ignore those that think bankcruptcy is a lasty resort. It's more often than not a far better solution than these muppet debt managment progs that mereyl extend the pain over years and even after they end you still have a ruined record, whereas had they gone for a clean bankcrupty 5 years ago they would now have a better creti record.

4Chickens

MichMoor

I agree with Conrad. Bankruptcy is nowhere near as scary as people think it is. I helped someone through the process and they were discharged after 6 months, they didn't have a mortgage but in the end it makes no difference, you cannot give what you haven't got. Get yourself over to the bankruptcy thread, those peeps are full of very reliable advice.
Chin up mate, there is light at the end of the tunnel (and it ain't a train)

GMS

Bankruptcy will solve your unsecured debts but not the mortgage.

As your liability on the mortgage exceeds the value of the property it is highly unlikely that the Official Receiver will repossess the property as the mortgage company would be paid first.

Problem you have is the mortgage company would be left short and you and partner would be liable for the shortfall.

If you went bankrupt prior to any sale/repossession by lender of the property then you need to make sure that this unsecured shortfall element would fall under your bankruptcy.

Last thing you need is to go bankrupt, get discharged, only to be made bankrupt again for a shortfall on a mortgage.

With no assets and full cooperation with the Official Receiver it is possible you could be discharged from the bankruptcy early.

Conrad

A lawyer serves no purpose when there are no assets, let alone money to pay his bills. The OP's ex will very easily claim she is destitute and penniless and even if she were not, a lawyer would have no chance extracting money from her on the basis 'she cleaned you ouy' because she will argue the opposite and that she had to rack up debts for all manner of reasons.

A lawyer is about as useful as a ready salted crisp to a slug.

CloudCuckooLand

I think that suggesting Bankruptcy when no figures have been mentioned, is a big leap. One person's definition of a "pile of debt" could be very different to another's.

Ok, they can't sell "for what we owe", but does that mean £2k short, or £200k short ?

If family/friends/credit cards could supply £2k to fill the shortfall, and keep the OPs credit record from being damaged by repossession, then that could deal with the house. Obviously less sustainable if its £20k. As for £200k...!

If the "pile of debt" is not actually the OPs responsibility, perhaps one of the free/charity debt agencies could advise on how to avoid (some of) those creditors.

To go straight to the "last resort", without knowing the full facts is dangerous/rash.

Ring CCCS, outline the issues. If they say "bankruptcy" fair enough. They may not.

MichMoor

Thanks for the above, the unsecured debt comes to not far off 40k, most of which is in my name, (I know I have been foolish thats why I asked for no judgements) at a rough guess I would say the shortfall would be round about 30k, based on a similar house on the same street been repossessed and sold last year. In addition my monthly pay will be cut from between £150 to £250/ month, net from next year, I have checked with my employer and going bankrupt would not affect my job.

I am in the process of seeking advice from CAB and CCCS, although they have similar conclusions to above. I have no significant assets, having sold what she did not take with her when she did one, all my belongings you can now fit into the back of a car so on the face of it I suppose I do not have much to lose by going bankrupt, I do have a roof over my head.

I had thought of getting the unsecured debt paid off then when they come after me with the shortfall coming to a arrangement with them, but what is the point of wrestling with the other debt for a couple of years only to be made bankrupt a couple of years down the line with the shortfall. I believe the shortfall will be included in the bankruptcy as long as I do not sign anything after the BK date.

But still I find it quite frightening.

Thanks for the above

SouthCoast

Visit the Bankruptcy Board on this site for experienced advice.

Information on mortgage shortfalls can be found here:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

getmore4less

Thats a lot if you have no way to pay this off in less than 4 years I would look at the other options ASAP if it going to happen anyway the sooner it is done the sooner you can carry on with your life.

How is the ex going to cope with a £30k shortfall on the mortgage.

Wonder if this new man will hang around once he realises the mess she is in?

MichMoor

Plus the debt that is jointly in her name, not interested in being vindictive towards her, I will give her the option of doing it with me if it happens, otherwise she will be on her own.
I do not think she really thought this thro when she walked out.