Have to go bankrupt please help

Grahambud

I have a property which I can't afford to pay the mortgage on anymore. The property has a B136 restriction on it which means when the house sells, the mortgage gets paid and then a private loan for £127k gets paid back too. If I go bankrupt and the house is repossessed, am I still liable for this loan or does this go as part of the bankruptcy? All advice is welcome, I am at the end of my tether, thanks all.

rizla_king

It would be paid off by the sale or if not enough to do that it would go into the bankruptcy. Either way you would be shot of it.

woodformoretrees

rizla_king wrote: »

It would be paid off by the sale or if not enough to do that it would go into the bankruptcy. Either way you would be shot of it.

Is the loan in your name only?

Trinitrotoluene

woodformoretrees wrote: »

Is the loan in your name only?

As a further question, is the £127k loan on top of the mortgage? Was this a business loan or is that the extent of your debt (£127k?)

Grahambud

woodformoretrees wrote: »

Is the loan in your name only?

My girlfriends mum lent us the deposit on verbal agreement that she live there until she died but the relationship ended and everyone went their separate ways.

Grahambud

Trinitrotoluene wrote: »

As a further question, is the £127k loan on top of the mortgage? Was this a business loan or is that the extent of your debt (£127k?)

the loan was for the deposit on the house so yes it's on top of the mortgage. She placed a restriction on the house which meant she got her money back when the house sold. However if the house gets auctioned I don't know what happens with the loan.

Grahambud

Grahambud wrote: »

My girlfriends mum lent us the deposit on verbal agreement that she live there until she died but the relationship ended and everyone went their separate ways.

I suppose if the deeds are in my name only then the loan is down to me as it was a deposit for the house.

Trinitrotoluene

Graham, I think it might help if you list the debts both secured and unsecured that you are dealing with and whose name those debts are in as i'm a bit confused by your previous posts. Primarily:

1) Was the loan for deposit and mortgage with the same lender?
2) Whose name is on the mortgage
3) Whose name is on the loan for deposit
4) Is the B136 restriction in the name of your ex partners mum?

Grahambud

I have a mortgage on the property which I can't pay.
The loan was just a loan from a persons savings and we had a verbal agreement, nothing in writing. She placed a restriction on house which ensured her money was paid when the house got sold.
I now can't pay the mortgage at all and wondered about what happens when house gets auctioned and I go bankrupt? Am I liable to pay anything?

Grahambud

Grahambud wrote: »

I have a mortgage on the property which I can't pay.
The loan was just a loan from a persons savings and we had a verbal agreement, nothing in writing. She placed a restriction on house which ensured her money was paid when the house got sold.
I now can't pay the mortgage at all and wondered about what happens when house gets auctioned and I go bankrupt? Am I liable to pay anything?

The mortgage is mine, the deeds are mine.

Trinitrotoluene

Thanks for clarifying. Were you paying back anything to the person that gave you the loan or were they just going to get their share when the house sold?

Regardless, that debt, as I understand it, would be included under the bankruptcy; you would however lose the house which I think you know.

Have you spoke to a debt charity to make sure that going bankrupt is the best choice for you?