Would i be able to get a DRO??

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I'm hoping that someone can help me with some information??

I have read all of the available posts with regards to DRO's but i was wondering if there was any chance that negative equity from a repo'd house would count towards debt as i would no longer own the home?

I am currently awaiting the repossession of my house that i have a joint mortgage with my ex. It is currently in negative equity and arrears. Once the house is repo'd and sold, i have been told by the mortgage company that i will be liable for half of the outstanding money. So can i then class this as debt in the same way as a credit card or overdraft?

I have accumulated a fair amount of debt since i split with my ex, but also took on half of our existing debts when we split. I am now on income support, which is reduced because of a social fund loan, and i'm starting to struggle to keep up with repayments on credit card debts. I have tried to get a 0% but i have no chance as i'm on benefits. I am wondering if anyone could suggest a possible route out of this situation for me as it's causing me no end of stress and sleepless nights worrying that i won't be able to keep a roof over mine and my daughters head, let alone feed and water us!

Comments

  • immoral_angeluk
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    mummymoo1 wrote: »
    I'm hoping that someone can help me with some information??

    I have read all of the available posts with regards to DRO's but i was wondering if there was any chance that negative equity from a repo'd house would count towards debt as i would no longer own the home?

    I am currently awaiting the repossession of my house that i have a joint mortgage with my ex. It is currently in negative equity and arrears. Once the house is repo'd and sold, i have been told by the mortgage company that i will be liable for half of the outstanding money. So can i then class this as debt in the same way as a credit card or overdraft?

    I have accumulated a fair amount of debt since i split with my ex, but also took on half of our existing debts when we split. I am now on income support, which is reduced because of a social fund loan, and i'm starting to struggle to keep up with repayments on credit card debts. I have tried to get a 0% but i have no chance as i'm on benefits. I am wondering if anyone could suggest a possible route out of this situation for me as it's causing me no end of stress and sleepless nights worrying that i won't be able to keep a roof over mine and my daughters head, let alone feed and water us!
    Any shortfall from repossession of a property which has been sold is an unsecured debt and so long as all of your debts combined are under 15k it won't be a problem. You'd need to double check the land registry and your credit reference files show the mortgage as settled though and the property sold.

    Also, if you are a joint account holder you are jointly liable for the FULL remaining shortfall, not half.
    Total 'Failed Business' Debt £29,043
    Que sera, sera. <3
  • mummymoo1
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    Yes sorry, i meant half of the full amount left over from the sale of the house.
  • wba31
    wba31 Posts: 2,189 Forumite
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    mummymoo1 wrote: »
    Yes sorry, i meant half of the full amount left over from the sale of the house.

    but you wont be liable for half, you will be liable for all of it. So if the house is sold for £90k, and you owe £100k, there is £10k neg equity. you will be liable for £10k. as would the other person named. if they did a dro or went bankrupt, you would be chased for the full amount. at all times you are as liable for the full amount as the other party.
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