Please help ...

Confusedme_2

Dear All,

Im so confused and have no idea what to do ....

Where do i start? My ex husband and i have just got divorced and are trying to sell the house however we came across a stmubling block in as much as we have a secured loan we cannot pay back, our financial scenario is a disaster area as follows:

Property had offer £182,000

Mortgage £145,000
Secured Picture Loan £60,000
His debts £58,000 (but in joint names) unsecured

We cannot live together anymore as the scenario is awful but we also cannot sell due to the secured loan. I was advised by the national debtline to go bankrupt but now I have read this wont clear the secured loan. I just have no clue what to do ... any advice greatly appreciated

Dawn

Confusedme_2

Forgot to add .. property has a very short lease and the extension is £11,000 on top ... serious negative equity ...

madoldbat

Oh! dear Confusedme Im so sorry to hear about your situation.I am of no use with advice on your problem as I have no experiance in this area but there will be someone along shortley no doubt who will know how to assist you.
Please take hart and welcome you can obtain some great advice and support on this site.

Confusedme_2

Thank you so much. Its awful as my divorce was very messy and so living like this is very uncomfortable. I was wondering if it would be possible to try getting the house repossessed and then therefore the secured loan would become unsecured debt suitable for an IVA? I have no idea if it could happen or if i am talking rubbish!

Thanks again

Dawn

betterlatethannever

What a rotten situation to be in.
You really need some solid advice and i'm sure the likes of Fermi, Ric etc will be along later to help you loads.
Maybe a visit to the CAB or this may even be solicitor stuff.
I hope you get this mess sorted, but in the mean time remember ALL messes are sortable in one way or another

fermi

Hi.

I'm not so hot on the property side but I'll say what I can.

If only one of you should go bankrupt then all the debts in joint names will become the liability of the other signatory under the rules of 'Joint and Several Liability'.

See: http://www.debtquestions.co.uk/legal_jointseveral.php

This would mean that even the liability for any shortfall in the repayment of the secured loan would pass to the other party.

However if you should both go bankrupt, then any shortfall on the mortgage/secured loan when the house is sold then becomes an unsecured debt which is swallowed up and written off in the bankruptcy.

Since it really looks to be a mine field how to distribute the proceeds of the sale of the house if you try to sell it before bankruptcy I would go bankrupt first (if this is your eventual route). It then becomes the 'Official Receivers' problem when it comes to how to distribute the sale proceeds of the home.

Hope that helps a bit, but keep asking questions so we can work out what the best approach is. It also may be worth getting a second opinion from either CAB or CCCS on your situation.

Jane_East_Yorks

Confusedme wrote: »

Dear All,

Im so confused and have no idea what to do ....

Where do i start? My ex husband and i have just got divorced and are trying to sell the house however we came across a stmubling block in as much as we have a secured loan we cannot pay back, our financial scenario is a disaster area as follows:

Property had offer £182,000

Mortgage £145,000
Secured Picture Loan £60,000
His debts £58,000 (but in joint names) unsecured

We cannot live together anymore as the scenario is awful but we also cannot sell due to the secured loan. I was advised by the national debtline to go bankrupt but now I have read this wont clear the secured loan. I just have no clue what to do ... any advice greatly appreciated

Dawn

Dawn,

It will clear the secured loan, imy hubby knows a lot more than me and he's busy at the moment but that debt would be included in yr bankruptcy. Im sure he'll see your post but honestly you dont have anything to worry about.

Keep smiling,

Love and best wishes,

Jane xx