Separated & Husband wants to go Bankrupt

Anondebtadvisor

If he did go bankrupt and neither of you could afford the mortgage payment the house would eventually be reposessed by the lender and any shortfall would go into his bankruptcy and they would persue you for the outstanding balance.

If he went bankrupt and the mortgage was being paid, the OR would want his share of the equity in the property released into the bankruptcy estate

debtinfo

One option would be for the OP to move back temporarily and pay what she can towards the mortgage, even if it is not the full amount they may give her the time to sell the property with the banks permission, true if the OH goes bankrupt then the OR will want half of the equity but at least she should break even rather than gaining a large debt from the shortfall

Mouse1812

The crux of your problem is

WelshSaver wrote: »

He won't put it on the market and sell it ....

and

WelshSaver wrote: »

I couldn't take the mortgage over on my own as I only work part time

If you can resolve this you have a neat solution

WelshSaver wrote: »

The house is valued at approx £130000, The mortgage is approx £101000 and the secured loan is £15500. So could be £13500 equity.

YOU would be left with about £5,000 (your half after fees and costs), so it must be in your interests to seek a quickish sale. As you say a repossessed sale may leave a shortfall which you could end up being liable for.

I don’t see how any other suggestion helps you. Put some pressure on your ex to agree to selling the house. Offer to do all the running around and ask him to just sign whatever needs signing. Make it as easy as possible for him and stress that it would be of benefit to your son.

edit to add

You will lose control once he goes bankrupt if you are not living in the house - hence debtinfo's comment. Sell before bankruptcy or find a way to move back in.

WelshSaver

Looks as though I have managed to talk my husband round. He said he will put the house on the market, once sold he will then consider bankruptcy. I just hope he sticks to this decision as he changes his plans all the time.

Thanks Mouse1812 our posts just crossed. I have asked an estate agent to call tomorrow even though it does need a good tidy as my husband doesn't seem to be coping well with cleaning etc.

Mouse1812

WelshSaver wrote: »

Looks as though I have managed to talk my husband round. He said he will put the house on the market, once sold he will then consider bankruptcy. I just hope he sticks to this decision as he changes his plans all the time.

my god that was quick, what did you do? :rotfl:

Well done

WelshSaver

I know mouse ,it was the last thing I expected as I had practically got my head around him going bankrupt. I just said how much it would leave me in the s*** and me owing that much money on my own would affect how I can look after our son. So hopefully that was enough.

WelshSaver

Oh well it was just delayed by the looks of things. My husband has told me he can't go on like this and will go bankrupt. I think it is that or he will do something silly like commit suicide as I really don't think he can't cope.

He has now cancelled the mortgage payment and the secured loan which are due to go out on Friday.

Now my thoughts are to get in touch with the mortgage company and ask if I can make reduced payments. But do i say I am living at the house, my husband has left and I cannot afford the full payment. Or do I tell the whole truth and say I moved out, pay rent and can only cover part of the mortgage and that my husband is going bankrupt and I would like to sell the house myself.

I am hoping by offering token payments to the bank and the loan company that it gives me the breathing space to sell the house before it gets repossessed.

Would love to hear what you would advise.

Anondebtadvisor

Thats a shame Welshsaver, this must be a stressful time for you xx

You can contact the mortgage company and secured loan co and offer payments it may buy you a bit of time but in my experience the secured lender will take action before the mortgage company they dont tend to mess about.

I dont think it will buy you much time and the end result will be the same - the property will be repo'd and sold and there will be shortfall which you will be left to deal with.

How will you pay the shortfall? or will you need to look into an IVA or Bankruptcy yourself?

WelshSaver

Thanks for such a quick reply. I am not sure as things are a struggle for me at the moment anyway. I have a DMP with Payplan and have asked them to split my debts and husbands debts into 2 separate accounts. I can afford my debts which are approx 10k. But when I get chased for joint mortgage and secured loan then I don't know what I will do.

I don't want to go bankrupt myself as I have just started to train to become an accountant.

I am wondering if it is better for me to put any money I save from not paying to my husband and wait for the house to be repossessed