What are my Options on Bankruptcy

p8sty

Ive seeked professional help with regards my current debt problems, and the advice i was given was to go Bankrupt... below details my debt...

MBNA...............£9000
Egg.................£12000
Egg Loan..........£5000
Barclaycard.......£4000
Northern Rock....£14000
Abbey Loan........£5000

Total owed £49000

Im a joint morgage owner with the wife whose morgage currently stands at £135,000 though the house is worth £170,000... Im not in a position to borrow any more money, nor is the wife, as she no longer works due to pregnancy, Ive looked into the IVA'a and full and final setlements but they are none starters...Due to the wife no longer working, I can no longer pay the above, with the exception of the morgage... I have as yet defaulted on any payments to my creditiors above, that all starts next month

My questions:

Will I lose the house?
How can I go bankrupt and still keep the house ?
Who out their has experianced the same as me, what did you do? the good and the bad...

Im not interested in listening to the moral richous out their, save your breaths...

All im imterested in is other peoples experiances, and what you did, thats legal and cost effective, If im totally honest Im looking for a quick clean getaway (damage limitation so to speak) I read a great Thread posted yesterday by Sooty0404 which advised the best way forward if you had negagtive equtity in your house, unfortunatly Im not in that postiionand im very reluctant to hand my half over...

Richard_S

p8sty wrote:

Ive seeked professional help with regards my current debt problems, and the advice i was given was to go Bankrupt... below details my debt...

MBNA...............£9000
Egg.................£12000
Egg Loan..........£5000
Barclaycard.......£4000
Northern Rock....£14000
Abbey Loan........£5000

Total owed £49000

Im a joint morgage owner with the wife whose morgage currently stands at £135,000 though the house is worth £170,000... Im not in a position to borrow any more money, nor is the wife, as she no longer works due to pregnancy, Ive looked into the IVA'a and full and final setlements but they are none starters...Due to the wife no longer working, I can no longer pay the above, with the exception of the morgage... I have as yet defaulted on any payments to my creditiors above, that all starts next month

My questions:

Will I lose the house?
How can I go bankrupt and still keep the house ?
Who out their has experianced the same as me, what did you do? the good and the bad...

Im not interested in listening to the moral richous out their, save your breaths...

All im imterested in is other peoples experiances, and what you did, thats legal and cost effective, If im totally honest Im looking for a quick clean getaway (damage limitation so to speak) I read a great Thread posted yesterday by Sooty0404 which advised the best way forward if you had negagtive equtity in your house, unfortunatly Im not in that postiionand im very reluctant to hand my half over...

Hi p8sty,

There’s no such thing as a painless bankruptcy unless you’ve no assets and the stigma attached to bky is not a problem.

Your problem is that you do have assets in terms of the equity in your house and the OR will want to get their hands on it. Assuming that all the loans are in your name and not joint with your wife then they’ll be looking for 50% of the available equity equating to £17.5k That can either be purchased by your wife or a third party.

If any of the loans are joint then it's even bleaker because most joint loans are based on "joint and several liability" and even if you declare bky they'll still persue yr wife for them. Again, if there's equity in a property then they can apply for a charging order on the house that secures their debt.

Are you sure that your house is actually worth £170k? The OR isn’t looking to establish the highest valuation possible; they’re looking to value the property at what it would sell for in prevailing market conditions in a reasonable length of time.

There may be other things you could do to improve yr situation but they would probably be classed as crossing the grey line.

Regards

Richard