Personal bankruptsy

wilky371

I have been on the MSE site for a while now, but mainly on the DFW part.
The purpose of this thread is to find out if when you do personal bankruptcy, do they always take your property ?

The reason I ask is that it's taken me a long time to get to the stage where I am on the property ladder & I dont want to loose it.

But I can see no other option regarding the debts.

Im in a nice job now which I should be for a good few years.

There is about 40k equity in the house.

Is there anyway of preventing loosing the house ?

Many thanks

Toomuchdebt

Can't you remortgage and pay off most of the debts? I think with 40K equity that's what they'd expect you to do first.

tight_jock

You don`t always lose the house as you will be given an opportunity to purchase the OR`s beneficial interest ( I think)

Other more knowledgeable bods will be along soon i would imagine.
:beer:

Richard_S

wilky371 wrote: »

I have been on the MSE site for a while now, but mainly on the DFW part.
The purpose of this thread is to find out if when you do personal bankruptcy, do they always take your property ?

The reason I ask is that it's taken me a long time to get to the stage where I am on the property ladder & I dont want to loose it.

But I can see no other option regarding the debts.

Im in a nice job now which I should be for a good few years.

There is about 40k equity in the house.

Is there anyway of preventing loosing the house ?

Many thanks

Hi wilky,

If you declare bankruptcy with debts almost equal to the equity in your house then yes, you almost certainly will lose the house. You don't mention a spouse or partner so I asume you live on our own and nobody else has an interest in the house.

If you contact one of the debt charities they will be able to professionally advise you of your options but in my opinion you're not really insolvent, especially if you have a good income; you just have a temporary cash flow problem.

Bankruptcy really is the last option to consider and unless there are other considerations that you've not mentioned you're a long way from that.

Richard