Bankrupt today now my mortgage

robkaz69

Can any one help?

Been to crown court today, paid the fees made bankrupt with my £49K worth of debts.

I have approx £28K in equity from a mortgage in my sole name, me wife and child want to make this a fresh start and start to rent because our house needs a lot of repair due to damp

Question,

Can i stop paying my mortgage after bankruptcy in the hope that the bank take the house or can i offer the house to the OR outright and continue my life in a rented house as i don’t want to look for rental houses, pay bond & fee's if I have to stay in the house.

Or can the OR and the bank decide between themselves who gets what and how much

Looked at leaflets available from insolvency agency and their is no clear rule.

Any comments would be welcome

wherediditallgo

I haven't got a mortgage, but I'd think that as the house is no longer your asset to deal with as you wish, you'd have to go through the OR. If you at least tell them you'd be willing for them to take the house towards settling your debts, they should be able to advise you of what the next steps are.

user55

I kind of thought the OR taking the house wasn't optional to be honest. This is something I would have thought you'd have been advised on before taking the step of going bankrupt.

I could be wrong though, I don't have a house so we got to replace that part of the advice with "check your tenancy agreement very very carefully!"

Good luck!

silvercar

Can i stop paying my mortgage after bankruptcy in the hope that the bank take the house or can i offer the house to the OR outright and continue my life in a rented house as i don’t want to look for rental houses, pay bond & fee's if I have to stay in the house.

The OR will register his interest in the equity by placing a charge on the property.

You need to take control and decide what you want to do. Weigh up the costs of rental against the costs of the mortgage + house maintenance.

If you decide to sell then speak to the OR in advance and obtain agreement - you won't be able to sell without this. By selling yourself, you will ensure that the mortgage is paid off and no further debt is attached to you. If you just stop paying the mortgage, arrears will mount up and eventually (6 months +) the mortgage lender will repossess, they will then go for a quick sale and if the arrears and outstanding mortgage exceed the sale value and rental costs this will be a new debt, post bankruptcy that you will have to carry forward.

I don't know how easy it will be to find a rental property with a bad credit rating, check out locally the level of rents and how easy this will be.

Lastly, I don't know if your agreements with the OR require you to pay the mortgage, if they do the OR will not be impressed if you don't, the mortgage payments are guaranteeing the OR's interest in the equity for your creditors.

Very lastly (!), Now you have gone bankrupt, you need to start this fresh sheet by being in control, work out what is best for you and control the situation - don't just fail to pay the mortgage and wait and see what the lender and OR decide to do - your way forward is in your hands.

robkaz69

Thanks for your positive thoughts,

My wife credit rating has secured us a rental property, bond money and admin costs been agreed with rental company the payment is less than the mortgage payment.

We have not commited to renting until i have spoken to the OR, i was hoping that if i put it across the right way the OR will see the logic in stop paying the mortgage as my outgoings would be less so potentialy as well as the equity in the house their is money for creditors.

Thanks