After a little advice

Legacy_user

Hi Everyone,

At the moment, I am *contemplating* BR. Basically my GF and I am are about to split up. When she leaves I will no longer be able to afford the food!

My debts are just a tad under 16K at the minute. I am paying by debts off, but it has become so all encompassing its actually making me sick. It consumes all my thoughts, all day.

I know I owe the money and I should pay it back but its making me ill.

The real concern I have is my house. I have been through so much to keep hold of it, it would break my heart to loose it.

At present, the outstanding mortgage is more than or is similar value to that of the value of the house.

If I were to pursue the bankrupcy path, what are the chances of holding onto the house.

Also when I was younger and foolish, I took out a loan against the house to do it up, does that mean they can take the house ?

My other assets arent great. I have a laptop, tv, a car (an old reg car worth about £500)

Just a little advice would be appreciated!

Conor_3

If there's no equity in the house, the chances of keeping it are high. Not sure how it goes with single ownership but in joint ownership, the other partner buys the interest off the OR and pays a flat fee in the case of no equity.

If you have any joint loans, the lender will go after the other party for the full balance regardless of your share.

Also VERY IMPORTANT. SECURED LOANS ARE NOT INCLUDED IN BANKRUPTCY so you'll have to continue to pay that even if you bank. If that means you still can't afford to pay the mortgage and secured loans even with banking then you're looking at the strong possibility of losing the house. It then becomes very tricky with the timing as then you need to do it in such a way that you hand over the keys to the house and manage to get a rented property (letting agents do credit checks now) before banking so the secured loan is now unsecured and would be included.

Richard_S

Conor wrote: »

If there's no equity in the house, the chances of keeping it are high. Not sure how it goes with single ownership but in joint ownership, the other partner buys the interest off the OR and pays a flat fee in the case of no equity.

If you have any joint loans, the lender will go after the other party for the full balance regardless of your share.

Also VERY IMPORTANT. SECURED LOANS ARE NOT INCLUDED IN BANKRUPTCY so you'll have to continue to pay that even if you bank. If that means you still can't afford to pay the mortgage and secured loans even with banking then you're looking at the strong possibility of losing the house. It then becomes very tricky with the timing as then you need to do it in such a way that you hand over the keys to the house and manage to get a rented property (letting agents do credit checks now) before banking so the secured loan is now unsecured and would be included.

Conor,

EVEN MORE IMPORTANT. SECURED LOANS ARE INCLUDED IN BANKRUPTCY.

If the loan is secured on your house then the creditor can force the sale of the house or apply for a charging order, but regardless of how they realise their security the bankrupt is not liable and the debt is included in the bankruptcy.

You're confusing the relationship between security and bankruptcy; the relevant legislation is below.

Richard

380. Introductory
The next five sections have effect for the interpretation of the provisions of this Act which are comprised in this Group pf Parts; and where a definition is provided for a particular expression, it applies except so far as the context otherwise requires.
381. "Bankrupt" and associated terminology
(1) "Bankrupt" means an individual who has been adjudged bankrupt and, in relation to a bankruptcy order, it means the individual adjudged by that order.
(2) "Bankruptcy order" means an order adjudging an individual bankrupt.
(3) "Bankruptcy petition" means a petition to the court for a bankruptcy order.
382. "Bankruptcy debt", etc
(1) "Bankruptcy debt", in relation to a bankrupt, means (subject to the next subsection) any of the following -
(a) any debt or liability to which he is subject at the commencement of the bankruptcy.
(b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commence- ment of the bankruptcy,
(c) any amount specified in pursuance of section 39(3)(c) of the Powers of Criminal Courts Act 1973 in any criminal bankruptcy order made against him before the commencement of the bankruptcy, and
(d) any interest provable as mentioned in section 322(2) in Chapter IV of Part IX.
(2) In determining for the purpose of any provision in this Group of Parts whether any liability in tort is a bankruptcy debt, the bankrupt is deemed to because subject to that liability by reason of an obligation incurred at the time when the cause of action accrued.
(3) For the purposes of references in this Group of Parts to a debt or liability, it is immaterial whether the debt or liability is present or future , whether it is certain or contingent or whether the amount is fixed or liquidated, or is capable of being ascertained by fixed rules or as a matter of opinion; and references in this Group of Parts to owing a debt are to be read accordingly.
(4) In this Group of Parts, except in so far as the context otherwise requires, "liability" means (subject to subsection (3) above) a liability to pay money or money's worth, including any liability under an enactment, any liability for breach of trust, any liability in contract, tort or bailment and any liability arising out of an obligation to make restitution.

nicky7175

i had my telephone interview this morning i have a joint secured loan and morgage with my ex. was told that as i have gone bankrupt i no longer owe the morgage or loan any more