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Bankruptcy petition will I lose my house?

mamarvg
mamarvg Posts: 3 Newbie
in Bankruptcy & living with it
Please Help! I received a letter to say that I will be served with a Bankruptcy Petition for a dept of £10K . Will I lose my house ? I have a mortgage and a 2nd morgage..Please help

Comments

  • CCCS_Emily
    CCCS_Emily Posts: 65 Forumite
    Hi mamarvg,

    Firstly take a deep breath and try not to panic.

    You need to provide a bit more information, please, so people can answer you properly...

    Who is the letter from?

    Was is posted or delivered in person?

    And a little more information about your situation as a whole...

    People on here are here to provide support and help.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • mamarvg
    mamarvg Posts: 3 Newbie
    Hi,
    The letter is from BTC and i think they representing the creditor, it came trough the letter box . It says that they've been directed to serve me with a Bancruptcy Petition.They called on monday just gone and they will call on saturday again to serve me personaly with the Bancruptcy Petition.
    Now a bit of background: Last year we, me and my husband,bought a shop for £30k not on free hold just the lease, for 15years, the bussines dint't work out, so we fall behind with rent 2 quarters when the landlord sent the baillifs in. We din't had the money to pay so we vacated the shop the next day . We tried to reason with the owner to pay in installments but he din't want to. Now i don't know what happens when you are made bancrupt but I heard I can lose my house. I have 2 kids and don't want to lose my home. Please if you have any sugestions on how i can avoid that. Thank you!
  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    Well assuming the bankruptcy goes through, the sale of the house will only be ordered if there's equity in it after all mortgages and secured loans are taken off the value.

    One thing to remember is that if there's no equity, you still have to "purchase" the ORs interest in it or they can force a sale later on, even after discharge, if the equity in it goes up.
  • CCCS_Emily
    CCCS_Emily Posts: 65 Forumite
    I think the best way for you to get advice on this is to talk to someone.

    I would suggest you give us a call on 0800 138 1111 as your situation seems too complex to discuss via this forum. You can book an appointment with one of our debt counsellors and they will be able to go through everything with you and advised you accordingly.

    Business Debtline may also be able to help you out on 0800 197 6026 www.bdl.org.uk

    Let us know how you get on.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • mamarvg
    mamarvg Posts: 3 Newbie
    Thank you for your help. I'll let you know .
  • Walter_J
    Walter_J Posts: 206 Forumite
    Unfortunately, commercial landlords tend to be complete b@$tards. They seem to take a psychopathic pleasure in forcing people into bankruptcy. You are going to need specialist help to protect your home - I'd phone the CCCS straight away.
    Edit - Is there any equity in the house? If it's not a lot I'd think about selling up and renting a place. Rents are currently around 2/3 of the cost of mortgages. And house prices are about to CRASH!!!
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