Divorce, negative equity and bankruptcy?

Chalky73

Hi
I am currently in the early stages of a divorce (petition not served) and the 'family home' which is in a joint mortgage is approx £60k in negative equity. I have moved out but still pay my half of the interest only mortgage. My wife does not want to live there long term with our daughter and she would not be able to afford the payments on her own.

The house will not increase in value miraculously over a short period of time and although renting it out is obviously an option it would take a lifetime for it to be worth anything near the outstanding mortgage balance.

Is both of us filing for bankruptcy our ONLY option to rid ourselves of this debt? If not what other possible and sensible solutions are there?

Apologies if a thread like this has already been posted!!!

ace2base_2

If the rent achievable stacks up against mortgage/management fees/Insurance/maintenance costs, the equity doesn't matter short term - cash flow is your biggest issue.
Hopefully you and the ex can be grown up enough to maintain a shared asset long term. It could potentially give you a small loss (better than bankruptcy??) or even a small profit.
Other side of the fence is how much would your ex have to pay in rent compared to mortgage repayments - could end up higher even for a smaller place.
You need to do some research...