Should we go bankrupt - please help!

Direstraits9

My partner and I have just moved out of a property that he owns and into a rented place. His property he owns with his ex it we have been living there for last couple of years and desperately trying tO sell it but with no luck. The mortgage is ridiculously high and there would be negative equity if sold. We cOuldnt sell and were rapidly running out of space, plus tired of the ex not taking any resPonsibilitu for her mortgage so we decided tO rent instead. The rent doesn't cover the mortgage so my partner and his ex have to pay half each of the difference. His ex told us that after this 6 month contract she would
No longer be able to pay her half Of the difference. On top of that we have just received massive letting fees which we were stupidly unaware of and now we don't have the mortgage money for this month. We are in a total dilemma as tO what to do for nIow and in the long term. If we ever managed to sell we will end
Up with a huge loan to settle The negative equity... And if the ex doesn't pay her share after 6 months could it be rePosessed anyway?? We hve our own rent to pay so only iust afford to Make up the difference on The mortgage. Should we get the Property repossessed? What wOuld be the implications? Massive advice needed please!

Direstraits9

I mean should we go repossessed not bankrupt or are they the same?

downsizer3

What kind of mortgage do they have - repayment or interest only? Could they go interest only for a while so that the rent covers mort payments?

JustinCredibleGillespie

Get in touch with your local Citizens Advice Bureau asap and get some advice. This situation really does look like it would be best to go bankrupt.

Would there be much negative equity if the house was sold tomoro?

Personally, well to me anyway, it sounds like your fed up just bumbling along and this is like a noose around your neck, so go & get advice on what your options are and go with it. Bankruptcy wouldnt be the end of life as you both know it, it could be the best thing your OH ever does.

Make sure & come back to give us an update.

JCG

xx

PippaGirl_2

Having a house reposessed is different to going bankrupt. If a house is reposessed the mortgage company take it over and sell it then let you know what the shortfall is (negative equity) that you still owe. You can then negotiate with them how you will pay the shortfall.

Bankruptcy is a different process where either you or a creditor file for your bankruptcy, pay the appropriate fees and then your estate goes into the hands of the official receiver. The OR assesses your assets, what you have to hand over in money or things of value or are deemed unecessary, and works out what of your incomings is spare to take from you regularly to pay towards your creditors. Many people choose not to go thise route due to their assets or income which they would lose. BR would normally end after a year but if you have a good income you may still need to pay for a further two years.

Be away that if any debts are in joint names (such as your partners mortgage) the BR will end their obligation to the debt but then the whole of the debt/mortgage falls on the other person so they end up owing the whole debt.

HTH