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Is bankruptcy the answer?
Need_to_move
Posts: 1 Newbie
Hi,
I'm very new to this website so please excuse any wrong wording. Need some advice on whether bankruptcy is the answer to my problems. Gonna get professional advice asap but just wanted a little heads up first.
We(my husband and I) bought our house in 2005 in Belfast. We got a mortgage for £125k. 100%. We owe around £110K now. Obviously the houses have seriously crashed, more so here than anywhere else. Houses in the area are for sale, on average, for about £50K. (a house sold in auction for £22K last week).
We desperately want to move. The house is a tiny 2 bedroom with no garden. We have a 2 year old and would like to try for another baby.
We both work full time and we both have very good credit, although we have accumulated some debt. We've never missed or been late on any payments on mortgage, loans, credit cards etc.
Our house will never ever be out of (a considerable amount) negative equity. So my question is should we go down the route of voluntary repossession and then filing for bankruptcy for the shortfall? And if so what way do we do this as in, do we stop paying our mortgage and loans etc? Surely if you file for bankruptcy they could turn you down if you've never missed a payment on anything?
Renting our house out doesn't seem to be an option because the rent wouldn't even nearly cover the mortgage.
Sorry if this is all a bit muddled up. Its a bit like my head at the minute!!
I'm very new to this website so please excuse any wrong wording. Need some advice on whether bankruptcy is the answer to my problems. Gonna get professional advice asap but just wanted a little heads up first.
We(my husband and I) bought our house in 2005 in Belfast. We got a mortgage for £125k. 100%. We owe around £110K now. Obviously the houses have seriously crashed, more so here than anywhere else. Houses in the area are for sale, on average, for about £50K. (a house sold in auction for £22K last week).
We desperately want to move. The house is a tiny 2 bedroom with no garden. We have a 2 year old and would like to try for another baby.
We both work full time and we both have very good credit, although we have accumulated some debt. We've never missed or been late on any payments on mortgage, loans, credit cards etc.
Our house will never ever be out of (a considerable amount) negative equity. So my question is should we go down the route of voluntary repossession and then filing for bankruptcy for the shortfall? And if so what way do we do this as in, do we stop paying our mortgage and loans etc? Surely if you file for bankruptcy they could turn you down if you've never missed a payment on anything?
Renting our house out doesn't seem to be an option because the rent wouldn't even nearly cover the mortgage.
Sorry if this is all a bit muddled up. Its a bit like my head at the minute!!
0
Comments
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they wont turn yiou don for not missing a payment but i dont know if you will have isues with fact you arnt short of money each month ???
you have a statement of affairs? can you actually afford the mortgage on your house.
also after bankruptcy you wont be getting a mortgage on anything else for several years at least0 -
You are not bankrupt. From what you are saying you can afford to meet your commitments. You have a negative equity problem that you think is preventing you from moving, and the bottom line is this is a 50k debt. From what you are saying look at renting out your house. There might be a shortfall in the income vs mortgage payments, but by the same token your new house price should reflect the house price falls as well. 100% mortgage might be a problem in this day and age. Could renting a larger house be an option?0
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