Will they bankrupt me?

Anondebtadvisor

You should not enter into a trust deed with this level of equity as you will be required to sell your property.

If you continue not to pay anything the chances of them taking legal action is much greater, if you can afford something a DAS maybe a better option as your assets are excluded.

Can you afford to pay anything towards your debts? you must be getting some benefits and you are not paying a mortgage?

Buzby

If any of the creditors is MBNA, their neat trick is not to bankrupt, but turn the debt into secured by attachment (of your property). They will not force a sale, but the Land Registry records it as a Charge and this has to be settled when selling. It also lasts until redeemed - no 5 or 6 year limitation.

National_Debtline

Hi all

Buzby - please note that the "Land Attachment" (to which I assume you are referring) has yet to become law. When or indeed if it will is anyone's guess.

It says as much on the Accountant in Bankruptcy website:

http://www.aib.gov.uk/services/land-attachment

Until then, unless a creditor seeks to make you bankrupt, the only action they can take in respect of the house is an "inhibition", having first obtained a decree in the sheriff court. The inhibition is NOT a secured charge on the property, and can not be used to force its sale. It can however put a spanner in the works if you are looking to sell or remortgage.

Regards

Dennis @NDL

anotherdebtor

ontrack wrote: »

You must have some income?

I dont. I really dont. I've been self-employed for the past 18 months, but making a tiny amount of money and barely surviving, WTC has been cut off because my bank has shut my current account.

At the moment, I'm living off the benevolence of friends until I can get something sorted out.

I've heard of inhibitions - the money advice worker mentioned it, and actually that would not be nearly so bad, as I'm not planning to remortgage or sell. I simply want to keep my home.

John1993_2

Buzby wrote: »

If any of the creditors is MBNA, their neat trick is not to bankrupt, but turn the debt into secured by attachment (of your property). They will not force a sale, but the Land Registry records it as a Charge and this has to be settled when selling. It also lasts until redeemed - no 5 or 6 year limitation.

That's not really a "trick", and will probably be better for the debtor than a forced sale.

If someone has a house, but also has debts that they can't cover, then it's only fair that the debt be attached to the property in some way.