Bankruptcy

grimkev

Hi
New to forum and looking for advice as about to fill in bankruptcy forms.

I am a resident of northern Ireland so bankruptcy would be same as the mainland united kingdom.

I purchased two properties during the good times now the rates have gone up and I am unable to continue the payments. One house has already been repossesed and sold on I purchased this house for 130.000 and was sold for 40.000 a shortfall of 90.000 or thereabouts .
The second house is in the process of being sold for exactly the same figures as above with similar losses.

I have also a credit are to the value of 12.000 twelve thousand pounds.Outstanding.

I have my own house with a mortgage of 90.000 ninty thousand and if sold there is no equity due to house prices in fact maybe worth less.
The mortgage is for 40 years and payments have not been missed on this as parents are paying at present.

Basically in a mess don't know where to turn very worried that they will take my home and in a year put me to the street.

Will the banks take my home all three properties are in my name only

Would lreally like some help
Thanks:(

2kadmin

Hi,

Sorry to read about your difficulties, I'm sure you are far from alone in experiencing the situation you describe.

I'm not able to give you much advice I'm afraid, a quick Google search confirms the process of going BR in Northern Ireland is different to England

http://moneyaware.co.uk/template-letters-court-forms/how-to-bankruptcy-forms-northern-ireland/

Might be worth speaking to step change as they appear to operate in NI, this is a big step and you are doing the right thing by asking for advice, that way you can make sure you get it right.

However, if the process post declaration is the same. It's very unlikely the O/R will take your home if it is in negative equity, (provided you can prove, that you can afford it i.e. not your parents) they may place a charge on the your home which means if the value suddenly increases you would have to pay them some or all of the equity released from the sale. However, if the situation doesn't change you can often buy back the beneficial interest in the property for a token sum. But as I said this is only if the rules they follow are the same!

Sorry I couldn't help, but thought it better than to leave you hanging.

2k

thelionel2000

I agree I used stepchange with my dmp and then when I went BR they were a great help. Also just posting a question up here someone will come up with some advice.

longtermplanner

I'm not familiar with the situation in Northern Ireland but your local Citizens Advice Bureau will be a good source of advice - though of course you can ask questions here and get them answered a lot more quickly There is a good description of bankruptcy here which you might find useful as background: http://debtcamel.co.uk/debt-options/bankruptcy/

It sounds as though you have a load of debt and bankruptcy probably is the best option for you.

re your house, what is worrying me is that your parents are paying the mortgage. Why? Can you not afford it?

Will you be able to afford it if all the rest of your debts are cleared by bankruptcy? If yes, then fine. If there is little or no equity then your parents will be able to "buy" it from the official receiver for a few hundred pounds and you can stay in the house.

If you can't afford it, then I think you should think seriously about giving up on this house too and renting. If you are on a low income you will be able to get help with rental costs via Housing Benefit.

qwert_yuiop

Are your parents paying an interest only mortgage? If so it's a waste of money, and they must stop. This game is over.