Please Help with Bankruptcy and join property

Robertino

Hi, i wonder if someone here could advice me on what to do.... Unfortunately I'm having no other option but to go bankrupt, my business failed after lot of work and spending all I had plus credit cards and loans. My problem is that we wanted to move abroad to live at my parents in Spain but have a join mortgage with my wife for a flat that we have been trying to sell for a year, finally we have accepted an offer of £94k but we owe the bank £104k (we bought at the peak of the market and took a 35 year mortgage). My wife is in minimum wage and I don't want her to have to pay for all £10k shortfall, in theory she should only pay for her 50% share?? she has already been paying the mortgage herself for the last 2 years! What would be the best way for me to do it to minimize her damage? Should i go bankrupt before the sale or after or what? I don't have the money to pay and she would need to use all savings she got left from her granddad inheritance!! I fell so bad that this is happening because of me, it's not fare to her... What should I do?? Thanks

ghostfinder

Just gone through this.

Mortgage is joint and several.

Your wife would have to pay the loan fully if you went BR

darren_clarke

if you go BR, then she will have to pay it, only thing to do is, sell house get a loan in your name to pay it off, then go BR

mattannar

darren_clarke wrote: »

if you go BR, then she will have to pay it, only thing to do is, sell house get a loan in your name to pay it off, then go BR

That sounds as ifyou could be committing fraud. Taking on credit knowing you are not going to pay it back.

ghostfinder

My OR was very thorough and checked if i had taken out any debt just prior to my BR

silvercar

You will have to get the bank's permission to sell, if you are selling without enough money to cover the shortfall.

laurel7172

Somebody on the brink of bankruptcy is unlikely to get a £10k loan, even if it wasn't for a fraudulent purpose.

OP-your wife being in negative equity is not your fault, nor the result of your bankruptcy. Buying the flat was a joint financial decision, and it sounds as if you, as a couple, would have been selling the flat and having to repay the balance from her inheritance anyway.

Consider yourselves fortunate to have the assets to wipe the slate clean and move on.

debt_doctor

mattannar wrote: »

That sounds as ifyou could be committing fraud. Taking on credit knowing you are not going to pay it back.

Yes, and is a specific bankruptcy offence potentially bringing civil and / or criminal penalty. A high risk strategy - especially within 2 years of BR.

DD

alastairq

I take it the OP is still together with wife?

Why not see if the bank will accept an offer for the shortfall?
[assuming they give permission for the sale to go ahead in the first place?]

Stocksm8

I used payday loans to pay for BR fees. Haven't had my interview yet. Am i in trouble?

ghostfinder

Are they brand new accounts opened last month or long running debts that you have been continuing to use?