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Bankruptcy and Negative Equity
Comments
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What would FP do if you stopped paying any of the second charge?
1. Go for repossession. But they wouldn't see a penny.
2. Let the debt mount up and hope you going bankrupt enables you to afford to pay them something at some point in the future.
Logically the latter makes more sense, but they may not see it.
Either way, in your position, I don't see the point in paying FP anything!I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
If you have no assets to protect then it may be worth going for BR but only you can answer the question really after weighing up all the pro's and con's. How much will the shortfall be aproximatly? Could you afford to repay it on an IVA?
If you are moving out of the house and going BR then stop paying all debts, mortgage and SL payments. Save the money for your deposit, rent, moving costs and BR fees. Move in and settle and then go BR.BSCno.87The only stupid question is an unasked oneLoving life as a Kernow Hippy0 -
Agree with TF, from what I've read on the board the advice is IVA if you have assets to protect, if you're going to let the house go then generally BR is advised as all debts will be or become unsecured and fall into your BR. If you have any surplus you would only have to pay an IPA for 3 years, versus an IVA of 5-6 years, and an IPA is more easily variable than an IVA.When I joined, I needed a name. The forum members gave one to me...I am INAN
"Fortunes ebb and flow and a boat must move with the tide and be thankful that it floats." Judith Allnatt0
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