Mortgage payments while in Bankruptcy

robkaz69

Can someone help,

Applied for an IVA, gone through paperwork reached proposal, before creditors meeting Abbey National rejected offer as it was less than the minimum 40pence in the pound, now looking at bankruptcy.

Happy to go down this root, i have a mortgage through Abbey and i am happy to take this as an asset so i can clear my debts and start a fresh.

Question.

Following Bankruptcy can i stop paying my monthly payments to the mortgage because if they take the house i will not get any equity so why pay each month.

Is this advisable.

Your honest thoughts would be appreceiated

Thanks

Richard_S

robkaz69 wrote: »

Can someone help,

Applied for an IVA, gone through paperwork reached proposal, before creditors meeting Abbey National rejected offer as it was less than the minimum 40pence in the pound, now looking at bankruptcy.

Happy to go down this root, i have a mortgage through Abbey and i am happy to take this as an asset so i can clear my debts and start a fresh.

Question.

Following Bankruptcy can i stop paying my monthly payments to the mortgage because if they take the house i will not get any equity so why pay each month.

Is this advisable.

Your honest thoughts would be appreceiated

Thanks

Hi robkaz,

If you're sure there's no equity in the house and that you don't want to stay there then there's nothing wrong with stopping paying the mortgage. For a number of reasons we stopped paying our mortgage and it took the bank, one of the harshest I might add, over a year to get a repossession order. Our circumstances changed, we decided to stay in the house and when it came to court the Judge accepted our proposal to address the arrears.

Richard