Partners walks out leaving me with £1000 mortgage!!repossession or bankrupcy??

charly007

Yes thats what I thought. The thing is I still can just about get by but dont see why i should when its half the ex's debt too. The only way the mortgage company will help me is when i stop paying it. Until then they are getting there money and thats that!

So the £1000 and further £700 i get from tenant I shall keep, pay off my credit card with that. I have to let it get in arrears before going bankrupt and to get help from anyone. Will they ask for that money back when they see i have just spent it on paying other debts and to get by?

nembot

It cost me £95 to change my residential mortgage to a BTL mortgage (Abbey, now Santander).

Ask your lender.

Tixy

If you are seriously considering bankruptcy at this point then I wouldn't get a tenant in to start renting it out.

You need some advice from a debt advice charity to decide if bankruptcy really is the best option for you and on the implications. For example, not paying the mortgage and taking rent from a tenant to pay off your credit card could be viewed as preferential treatment.

Please seek some professional advice before you stop making your mortgage payment, this link has a list of charities you can contact for advice (you do not need to be in arrears to seek help from these charities) - Look here first - Bankruptcy Help: Important topics, factsheets and links

RAS

charly007 wrote: »

Yes thats what I thought. The thing is I still can just about get by but dont see why i should when its half the ex's debt too. The only way the mortgage company will help me is when i stop paying it. Until then they are getting there money and thats that!

So the £1000 and further £700 i get from tenant I shall keep, pay off my credit card with that. I have to let it get in arrears before going bankrupt and to get help from anyone. Will they ask for that money back when they see i have just spent it on paying other debts and to get by?

Charley

Either you rent out, or you allow the house to be repossessed for non-payment.

Don't do both.

If the reposession happens your OH will be liable for any outstanding short-fall. If she then fails to come up with the money to make good, you can consider going BR. That removes your laibility for the shortfall. Since she won't pay ball re the house sale, let her take the flak.

Do talk to people on the BR forum and to the debt charities about your options. If you allow the property to be repossessed, then it is essential that you time this right with respect to the bankruptacy and that you do NOT sign any paperwork with the maortgage provider when the reposession happens.

This will affect both your credit ratings, and since your ex has joint debts with her new partner, his credit rating as well.

I recommend that you advise her of the consequences of not agreeing to your plans. You will need her consent to get a BTL mortgage (likely to be more than a standard one) or to sell but she has to understand the consequences of refusing to co-operate.

serious_saver

Please don't even consider getting tenants in if you are genuinely intending on going bankrupt. How would you feel if you had just settled into you new home and then got evicted because your landlord had gone bankrupt and the house was repossessed? I know a few people who have been through this and it can totally destroy their lives. So please don't seriously consider this as an option.

You sound like a reasonable person and I'm sure you wouldn't want to put someone through that kind of ordeal. If you go on the House Buying, Renting and Selling board you'll see a whole array of horror stories about what it's like and the devastation it can cause.

Either get tenants in or go bankrupt.

Edit - RAS, you beat me to it.

GDB2222

Tixy wrote: »

If you are seriously considering bankruptcy at this point then I wouldn't get a tenant in to start renting it out.

You need some advice from a debt advice charity to decide if bankruptcy really is the best option for you and on the implications. For example, not paying the mortgage and taking rent from a tenant to pay off your credit card could be viewed as preferential treatment.

Please seek some professional advice before you stop making your mortgage payment, this link has a list of charities you can contact for advice (you do not need to be in arrears to seek help from these charities) - Look here first - Bankruptcy Help: Important topics, factsheets and links

There's no real point in paying off one creditor rather than another. It's called a preference, and in theory it can be undone. In practice if the amounts are relatively small nobody will bother, and in any case it's not your problem. What I wouldn't do is borrow to the max, then spend like crazy, as that could (again in theory) be fraud, and in any case it's likely to upset the trustee in bankruptcy. They are sympathetic to people who simply can't pay their debts.

I have no personal experience, but if you buy a few new clothes and have a couple of nights outs, maybe a reasonable holiday, nobody is going to get too hot under the collar. If the car needs replacing and you need it for your work, now is the time to do that, but nothing lavish. Or at least get it thoroughly overhauled. If you are self-employed, now would be the time to buy some tools, spend on advertising....

It's obviously illegal to stash money away in cash, and I couldn't recommend that, but I suspect you wouldn't be the first.

charly007

whats classed as small amounts on clothers and holiday? Thank you for all your advice its been really helpful.

Gordon_Hose

A pair of speedo's and a trip to the tanning salon

sugarwalsh

charley007, I am alittle confused as to why you want to go bankcrupt though? You say you can 'just about' afford it and earlier you said you were on a good wage (Reflected in the amount of child maintenance you pay) so surely you wold just be better off asking your solicitor to write to your ex and asking her to pay her half?

There must be lots of people in this situation and I can't imagine going bankcrupt is the choice of most people?

Megan

charly007

Yea megan thats why I am writing to her first to see if she will pay half. She is very unresonable and dumb so she will say no, i just know it. We shall see.