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

Gordon_Hose

sugarwalsh wrote: »

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

If she says "No" then that's about it.

He can't force her into paying up, but Bankruptcy, even the threat of it, can make someone see the situation in a different light. Especially as she is liable for 50%.

GDB2222

At the moment, everybody else is happy with the situation, apart from charley. The lender is being paid. The ex- is being paid, and if the house value (by some miracle) shoots up, you can bet she'll want her share of the equity. One way of forcing the hands of everybody else involved is to go bankrupt. The alternative is to go on indefinitely as at present, or maybe to force a fairer contribution from the ex-.

The main problem remains that the house is in negative equity, and that situation could persist for another 10 years. Or maybe not. Who knows? If Charley goes bankrupt, he goes from negative net financial worth to nil, which may be a distinct advantage, depending how much negative equity the house is in.

sugarwalsh

I see. But would it not effect future loans/l=mortgages etc? It seems very extreme to me, but perhaps it is not as bad as I think it is.

Charley - good luck with writing to her, I hope if you tell her your thoughts she may come around to helping you pay for it and helping you sell it.

Megan

GDB2222

sugarwalsh wrote: »

I see. But would it not effect future loans/l=mortgages etc?

Bankruptcy is about as bad a blot on your credit rating as it is possible to get. OTOH, it gets wiped off the record 6 years after bankruptcy ends. In the meantime, charley has a good opportunity to start saving a decent deposit for a new house. Is it worthwhile? That depends how bad the negative equity is on the present house and what charley's crystal ball tells him about what house prices and interest rates will do in the future.

Tixy

GDB2222 wrote: »

Bankruptcy is about as bad a blot on your credit rating as it is possible to get. OTOH, it gets wiped off the record 6 years after bankruptcy ends. In the meantime, charley has a good opportunity to start saving a decent deposit for a new house. Is it worthwhile? That depends how bad the negative equity is on the present house and what charley's crystal ball tells him about what house prices and interest rates will do in the future.

Well not for the first 3 years - as he'll have an income payment arrangement to pay his disposable income towards his bankruptcy.

sugarwalsh wrote: »

I see. But would it not effect future loans/l=mortgages etc? It seems very extreme to me, but perhaps it is not as bad as I think it is.

Nobody on here can advise whether bankruptcy is the best option for Charly as there isn't enoough financial information, but its certainly an option he can consider along with alternatives.

RAS

People who have been BR struggle to get consumer credit but do not have much problem with secured debt once a few years have passed.

The bigger problem would be the repro, which has more impact on his (and her) ability to get another mortgage.

The problem is that if he just goes BR without repro as well, with negative equity, the OR might not be keen to let the house go, although with the mortgage being so high and charley not even living there, that would enable him to pay something towards his creditors.

I would suggest a visit to the BR forum and puitting up a couple of potential SOAs to see what the implications would be financialy.

charly007

my current partner who i am moving into has already got a mortgage so ill just keep paying her bills all in. Plus she shares with her father on the mortgage and we have all agreed that he can stay on there due to his contribution in the past and the fact id need 9k to buy him out anyone which i dont have!

I wont need to get a mortgage during this time, ill just rent if it does not work out with my current partner.

I am scared about having my money so restrictedif i have no choice but to go BR. How much on average do they give you for food etc.

If the debt is say £30,000 and it works out £15k each once the house is sold, would this be enought to go bankrupt and surely I would be better off to jsut get a one off loan?

Too many options and choices! Like one of you said i need a crystal ball! Its all ifs and buts! I guess i need to take one step at a time and see where the pennies lie!!

GDB2222

Tixy wrote: »

Well not for the first 3 years - as he'll have an income payment arrangement to pay his disposable income towards his bankruptcy.



Nobody on here can advise whether bankruptcy is the best option for Charly as there isn't enoough financial information, but its certainly an option he can consider along with alternatives.

Totally agree with both points. In practice, the income payment arrangements seem to vary a lot. Some people seem to be totally ignored by their TIBs.

pinkshoes

Right, if you're paying £300 a month child support, then if this is 15% of your net pay, you must take home £2000 a month, which means you earn £32k yes?

It think you need to do an SOA (statement of affairs), as £2000 a month should be enough to pay £1000 mortgage, £300 CSA, all bills, and some money left over for you.

Rather than renting the house out (which won't happen if you're in negative equity...), then you need to focus getting rid of your ex.

I wouldn't normally advise this, but STOP paying the mortgage, and stash the £1000 a month you save in a private bank account. Write to your ex as I suggested in my last post, but tell her that you can no longer afford the mortgage, so as of next month will no longer be paying it, and that unless she pays the £12000 she owes you for her half of the mortgage over the last 2 years, you will leave the house to be repossessed, and she and her husband will be chased for half the debt by debt collectors, which could mean losing their new home.

What is the house worth? How much is the mortgage?

Being repossessed will screw up your credit rating, but you won't necessarily have to go bankrupt. You could save up as much as possible from not paying the mortgage, then take out a loan to pay your half of the debt. You'd then have a loan to pay off, but on your money, it shouldn't be too difficult.

MoneySavingUser

I know you are trying to do what is best for your daughter - but it seems your ex is screwing you over....stop worrying about the effect on her and do what is best for you - if her credit rating is affected or assets taken that is her own fault...