Going bankurpt on my mortgage. How much a month will i have to pay back if I earn 35k

ladaowner55

In 2007 I purchased a flat for £110k and had a together mortgage for another 11k so a total mortgage of 121k. In the past 7 years I have made over payments of £10k so I still owe £111k. A flat below me sold for £20k last week because of the issues below.

My problem is since 2007 the management company that own the freehold on the ground and do the management on the building have gone bankrupt and the company directory has done a runner to Easten Europe with most of the cash and his company has been declared bankrupt and removed off the companies register.

The other flats in the building have been rented out to drug dealers and scum tenets and it is a living nightmare, so I am thinking of going bankrupt. There appears no other option as Norther Rock will not allow me to rent out the flat so I am stuck living with the drug dealers or going bankrupt.

My question is what would I be expected to pay back to Northern Rock each month if I did go bankrupt? I am single and have no children or any other debt apart from a 7k loan for a car which is currently worth 7k.

Does anyone know the answer? Also how long do I have to keep paying these payments? Is it 12 years?

System

I think first of all you need to give a bit more info here. Going BR isn't a decision to take lightly nor is it guaranteed to happen even if you petition for it at court.

You haven't posted anything about your current financial situation and that will have a bearing on whether the BR is likely to happen or not. If you can afford all of your payments and you're not swimming in debt, there's a chance the judge might just say no.

If you do end up BR, then I don't believe you'd pay anything to NR. You would stop payments and it would be for the Official Receiver to decide whether or not you have to pay into an IPA for 3 years max. The flat would eventually be repossessed and any shortfall would fall into the bankruptcy.

*edit - sorry, didnt see your original bit saying you had no debt apart from a car loan. Unless your income has crashed right down I'm not sure you'd be eligible for BR based upon what I know.

Bankruptcy is for those who cannot afford their debts or who have an unrealistic chance of ever being able to get on top of them.

ladaowner55

So in reality I have to stay in a property that I cannot rent out, cannot move from or port the loan to something cheaper. Life is a living nightmare here, there are 2 different drug dealers and 2 different drug takers living in the block.

In total I have logged over 100 police reports and complains with council etc.

I watched a documentary on an Irish couple who purchased a house and the developer went bankrupt and failed to finish the other houses on their estate and the whole place turned into a ghost town. They appeared to be able to get bankruptcy? I wonder how they did this?

Is there no options for me? Nothing I can do. Apart from lose my job or go clocking up credit till I go bankrupt?

National_Debtline

Hi there

There is far more scope for you to go bankrupt than has been suggested so far.

Have you identified somewhere else you can move and would be offered a tenancy agreement for? If so this is what you could do:

Stop your mortgage payments now (especially if you have to save up a rental deposit and other moving costs), move in to the new place and give the keys to your flat back to Northern Rock. This would be classed as a "voluntary surrender" - I would be surprised if others in your apartment block haven't already done likewise - and NR will have to get whatever they can for it at auction. Whatever shortfall remains post-auction is recoverable from you, but this debt can simply be included in your bankruptcy petition.

We could do with knowing more about your situation in order to advise in greater detail, of course.

I'm sure there are numerous other threads on here about this kind of scenario, but hope this is a useful pointer for starters.

Regards

Dennis @NDL

System

You might be better asking on the Mortgages board.

I'm not saying you definitely wont be able to go BR, just that there is the possibility you wont be given it. BR will have life-long ramifications too, which may not be necessary.

Ignoring BR for a minute, you can just stop paying the mortgage, move out and let the repo process take place (months). You will be chased for the shortfall though plus charges. It'll be years before you can get a mortgage again though.

immoral_angeluk

It is worth mentioning that even with voluntary surrender the lender still has to go through the court process to formally repossess. I have seen lenders who have taken years to do this even where the keys have been sent back (although in most cases they will do this within 12 months) and you are still responsible for the property, the council tax and keeping it insured in case of burglary, fire or flood especially if it will be left empty.

As others have said you may wish to also post over on the mortgages board.

It is also worth considering private sale or voluntary assisted sale via nram if you cannot afford to sell it yourself.

immoral_angeluk

messedupmoney wrote: »

You might be better asking on the Mortgages board.

I'm not saying you definitely wont be able to go BR, just that there is the possibility you wont be given it. BR will have life-long ramifications too, which may not be necessary.

Ignoring BR for a minute, you can just stop paying the mortgage, move out and let the repo process take place (months). You will be chased for the shortfall though plus charges. It'll be years before you can get a mortgage again though.

Have to agree re bankruptcy. I'd be surprised if a court granted bankruptcy based on the current circumstances, but you never really know as its down to the judge on the day.

don240

immoral_angeluk wrote: »

It is worth mentioning that even with voluntary surrender the lender still has to go through the court process to formally repossess.

Not sure if that is correct, I had a together Mortgage with N/R, Handed the keys back in April 2010, it was on sale the week after & sold by July 2010, I waited till the sale was done so that the negative equity transfered to an unsecured loan & went Bankrupt in October 2010.
Just a thought & without knowing your outgoings, have you thought about a buy to let Mortgage, then you could rent it out & keep your credit rating (I know you sald that one in the block just sold for £20K but sale & valuation values are not the same)
I also believe that the owners of the property's that are being let to drug dealers can be held responsible for the actions of there tenants, so I would take legal advice as to what (if any) action you can take.

tiggerbodhi

immoral_angeluk wrote: »

It is worth mentioning that even with voluntary surrender the lender still has to go through the court process to formally repossess.

Agree with don240, with VR the lender does not need or have to go via the courts.

The nay sayers on being able to go BR, add up the numbers and give the OP some hope...

Mortgage totalling £111K

Flat sold recently for £20K, lets says that was a complete wreck so the OP's might sell for £30K at auction after VR, the bank will add costs, missed interest payments, solicitors fees, if it takes 6 months to sell guessimate of £5K.

So the shortfall the OP will be responsible for would be £86K, and BR would be a real option, yes your credit score (pretty meaningless anyway) is carp for 6 years, but even with an IPA the end to the misery of living it what seems like hell and having to pay for the privelidge will be three years.

The often suggested way would be stop paying the mortgage, send the keys back recorded delivery with a letter giving VR, (DONT sign anything they may send you regarding VR and shortfalls on mortgages) move out rent get on with your life, when the Mortgage company write saying "can we have our £86K ish" you go BR, end of.... been there done it, got the life back.

forgotmyname

Dont forget any mortage or loans in the future maybe loaded.

My sisters had to goto one of these companies that give anyone credit to buy a car.

The result is she will be paying over £7000 for a car thats only worth £1500 if she went out and paid cash now.

Some insurance companies wont want you either. Its a costly thing to do and sometimes there to haunt you for the rest of your life.

tiggerbodhi

forgotmyname wrote: »

Dont forget any mortage or loans in the future maybe loaded.

My sisters had to goto one of these companies that give anyone credit to buy a car.

The result is she will be paying over £7000 for a car thats only worth £1500 if she went out and paid cash now.

Some insurance companies wont want you either. Its a costly thing to do and sometimes there to haunt you for the rest of your life.

There is a long involved answer to refute the above, but the quick one is "scare mongering rubbish"

Some insurance companies don't want BR's but there are loads who will and the premiums are not higher because of this.

Mortgages with companies that don't mind BR's dont load the interest rates, they have the security of your house.

After 6 years a BR's credit file can be as good as anyone elses, the more likely reason your sister had to go to a sub prime loan is her present status, ie income to debt ratio etc.