Bankruptcy/Mortgage Options Following Seperation

Kimaster1976

Hi,

I currently have a joint mortgage with my ex wife (we seperated and she moved out coming up to 3 years ago). She has not paid anything to the mortgage since and I have been paying on my own.

I wish to leave the property as it is a financial burdon to me but the house has a valuation of around £120,000 yet over £140,000 is needed to pay off the joint mortgage.

Obviously neither myself or my ex wife has the 20,000 odd thousand needed between us to pay off the shortfall to the mortgage provider should i sell the house for its market value.

What options does this give me....am I trapped here for the next 20+ years, or is bankruptcy the only option by stopping paying the mortgage and having the house repossessed?

Any help or advice would be appreciated thanks.

National_Debtline

Hi Kimaster and welcome to the forum.


There is nothing trapping you in that house if you want rid of it. I would first of all work out where you want/need to live elsewhere and line up something suitable. That is likely to involve a deposit and lettings agency fees at the very least.


If you have no savings or disposable income to cover these costs, you may need to consider reducing your mortgage payments or stopping them altogether to raise the money required. A lender will usually not start any formal repossession proceedings until at least 3 months of arrears have accrued.


You may want to delay a decision on bankruptcy until you have safely settled in alternative accommodation. At that stage you will have a clearer picture of your financial position and can make a more informed choice.


Dennis
@natdebtline

Kimaster1976

Hi and thank you.

I will be moving in with my parents for the interim to save money and start rebuilding my life so alternative accommodation isn't a problem.

Can I just stop paying my mortgage now and leave the property empty. How about the utility bills such as council tax, water and electric, can all those be cancelled even though I still own the property just not living there.

Who's the best person to see when you're planning all this is it something a financial advisor can guide you through?