Bankruptcy after repossession

crescent25

Hi,

I've been reading through MSE and other forums/information sites all afternoon and am just getting even more confused.

My house will probably be getting respossessed shortly as I can't afford to keep up the repayments after my ex has left (joint mortgage). I don't really want to go into any more detail but basically, if I let me house get repossessed and end up with say £30k of debt afterwards (alongside another 10k of personal loans and credit cards) can I apply for bankruptcy, or do I need to apply for bankruptcy before the repossession takes hold?

I just don't want to end up with the house getting repossessed, having £30k of debt against me and not being able to clear it if I need to deal bankruptcy.

Also, does anyone know what would happen if my house got repossessed and I decided to study as a student for 4 years? Would they continue chasing me for the money over this time, or would they stop chasing me until I'm working again and try contacting my ex? What would happen if he wasn't working either?

I've had a bit of grief from other forums, so I really don't want to go into any details as people have been really rude to me Not from MSE, but another forum.

I'm sorry if this information is all widely available, but I just don't understand it and am really confused... I've tried speaking with some debt charities, but they've said they can't really help me until I'm in a position to declare bankruptcy. I just need to get everything straight in my head.

Thank you

fermi

crescent25 wrote: »

an I apply for bankruptcy, or do I need to apply for bankruptcy before the repossession takes hold?

Either.

As long as after the bankruptcy you do not sign anything to say you are liable for the shortfall, then it will fall into the bankruptcy when the property is eventually sold.

Without the bankruptcy, they would just chase all/any liable parties for the shortfall. However, if you as a student or your ex not working means that you haven't got £30K lying around, then there isn't much they can realistically do. They may threaten and harass, but they can't get the money if you don't have it.

Falze

crescent25 wrote: »

Hi,

I've been reading through MSE and other forums/information sites all afternoon and am just getting even more confused.

My house will probably be getting respossessed shortly as I can't afford to keep up the repayments after my ex has left (joint mortgage). I don't really want to go into any more detail but basically, if I let me house get repossessed and end up with say £30k of debt afterwards (alongside another 10k of personal loans and credit cards) can I apply for bankruptcy, or do I need to apply for bankruptcy before the repossession takes hold? Repo before or after BR is fine. Any debts (shortfall) will fall into your BR.

I just don't want to end up with the house getting repossessed, having £30k of debt against me and not being able to clear it if I need to deal bankruptcy.

Also, does anyone know what would happen if my house got repossessed and I decided to study as a student for 4 years? Would they continue chasing me for the money over this time, or would they stop chasing me until I'm working again and try contacting my ex? What would happen if he wasn't working either? I'm assuming you mean if you dont do BR - They will chase you until its paid, but if you haven't got it, what can they do. You might be able to negotiage a repayment plan, but the debt will be active until settled or you declared BR

I've had a bit of grief from other forums, so I really don't want to go into any details as people have been really rude to me Not from MSE, but another forum. Most (99%) of people here are excellent. We've all been through the process, so understand more than other boards what your going through.

The more honest you are the better we can help you (i found it helped to get things of my chest) and dont worry if your embaristed, someone here has probabley done it too.

I'm sorry if this information is all widely available, but I just don't understand it and am really confused... I've tried speaking with some debt charities, but they've said they can't really help me until I'm in a position to declare bankruptcy. I just need to get everything straight in my head. Dont worry keep asking, thats what we all get paid for


Thank you

I hope this helps. Keep posting and best of luck.

mostlycheerful

Have you considered taking lodgers? What a lot of people do is live in the living room and rent out all the bedrooms or live in one of the bedrooms and rent out the other bedrooms and the living room. Alternatively some people rent out the whole house to tenants and rent somewhere cheaper themselves. Occasionally having lodgers or tenants goes wrong but mostly it’s easy money for nothing and is mostly lucrative. Could be a solution for you. Probably better than losing the house and owing huge amounts and or going bankrupt. Give it a go. Good luck.

crescent25

That's great. Thank you very much for confirming this with me.

If I apply for bankruptcy after the reposession (as I may be out of the country for a while when the house gets repossessed), would my ex still be liable for the shortfall on the mortgage? (Around 30k)

fermi

crescent25 wrote: »

If I apply for bankruptcy after the reposession (as I may be out of the country for a while when the house gets repossessed), would my ex still be liable for the shortfall on the mortgage? (Around 30k)

Yes........................

crescent25

mostlycheerful wrote: »

Have you considered taking lodgers? What a lot of people do is live in the living room and rent out all the bedrooms or live in one of the bedrooms and rent out the other bedrooms and the living room. Alternatively some people rent out the whole house to tenants and rent somewhere cheaper themselves. Occasionally having lodgers or tenants goes wrong but mostly it’s easy money for nothing and is mostly lucrative. Could be a solution for you. Probably better than losing the house and owing huge amounts and or going bankrupt. Give it a go. Good luck.

Thank you for this advise. I have actually been renting the house out, but because we took out the mortgage when house prices were at their peak, the rental income doesn't cover the mortgage. I have had to pay money into it myself for the last 3 years (around £4k) and my ex has paid nothing! What's been happening is that when the tenants move out (usually after 6-12 months), it takes me a few months to locate someone, or the overlap is where a mortgage payment is due and I've missed one. I'm now up to 2 months arrears because of this and the building society have said they'll repossess if I miss one more payment and are already threatening me. I can't afford to cover the missed payments when there's no one living in the house.

These tenants have said they're only staying for 6 months and then will be moving on as need somewhere cheaper (in April), so if I can't find a tenant in time, another payment will be missed and the house will become repossessed. Even if I do find another tentnat, how long can I carry on paying and maintaining a house where my ex doesn't pay a penny into... I can't really see the house being sold for what we paid for it for another 4 - 5 years, which will equate to almost £9-£10k that I will have to pay into it. This isn't including landlord certificates and general maintainence etc.

I'm not on speaking terms with my ex and only know the location of his parents who I've been writing to without any luck for the last few months.

I know that it'll be easier for me to continue paying in the extra money each month rather than letting it get repossessed, but it's leaving me short and I'm struggling to pay credit cards and loans. I can't really see anyway out other than repossession and bankruptcy. I'm also wanting to go to college and uni full time to study (as never did this when I was yonger because I decided to buy a house with my ex!!!) but couldn't study when I have to pay this money into my mortgage each month and pay for my credit cards and loans. I could probably just about manage to repay credit cards/loan whilst at uni, but not keep up the repayments on the mortgage as well.

crescent25

And thank you everyone for not judging me... I just need some guidence as to what would be best.

On another forum they told me it was irresponsible for me to be thinking of studing when I have a house and I should set my priorities straight... But I'm not sure I can just keep paying money out and letting my life go by when I feel my ex has moved on and wiped his hands clean. I lay awake at night worrying and panicing and he's just moved on and living his life, yet I'm stuck behind trying to pick up the peices.

Sorry to write so much!

Falze

It doesn't matter what anybody thinks or says Crescent. You've gotta look after yourself and live your life. I'm sure you will probabley have those sort of feelings anyway (i did/still do), but you dont need someone who doesn't know you or your circumastances telling you.

What ever you decide, best of luck and we will give you all the support and advise we can.

Falze

kepar

You do not say where you are living at the moment , are you renting or with parents/friends etc?

minicooper1961

crescent25 wrote: »

Hi,

I've been reading through MSE and other forums/information sites all afternoon and am just getting even more confused.

I've had a bit of grief from other forums, so I really don't want to go into any details as people have been really rude to me Not from MSE, but another forum.

I'm sorry if this information is all widely available, but I just don't understand it and am really confused...

Thank you

Hi Cres, just to say, join the club of the confused! I am sorry to hear you have had a hard time from other forums, I hope you find the help you need here - apart from the odd troll everyone is so supportive. If it makes you feel better I have sometimes wandered off on to other boards even on MSE and I have so hot footed it back here - so you are amongst friends MC x