houses

cancatsdance

i have two houses which i rent out. my plan is to hand them back then go bankrupt so as the make any secured loans on the property be apart of the bankruptcy.

how long after i tell the mortgage company that i dont want them do i file for bankruptcy?

National_Debtline

Hello there,

I assume that the properties could be in negative equity - is that the case?

You can petition for your bankruptcy at any stage - even prior to handing back the properties if you wish to. What is important, though, is not not sign a 'deed of acknowledgement' once you've become bankrupt - as this could make you potentially liable for any shortfalls on the properties once more.

We've a useful fact sheet on bankruptcy which you can find here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Best wishes,

David @ NDL.

luvchocolate

Also remember you are liable for the council tax and building insurance until formally repossessed in my case 10 months

cancatsdance

yes negative equity on both and both have a secure loan on them. i just dont want any part of the mortgage or loans round my neck any more.

both houses are rented out but dont cover the mortgage.

i live in rented accom

National_Debtline

Once the houses have gone back to the lender - any shortfall will be included within the bankruptcy. You can find out more about houses in bankruptcy via the following guide:

http://www.bis.gov.uk/assets/insolvency/docs/publication-word/what-will-happen-to-my-home.doc

David.