Bankrupt & Property Question

Farmer_jones

Hi

I am considering bankruptcy as an answer to my debt problems.

I currently owe around £60K and have a DMP in place via StepChange. I have potentially, another £6K of debt to add to the DMP in the next month or so depending upon how a court case turns out.

In addition there maybe another £60 - £70K of debt to add on to the pile as well, although I won't know for sue until next year.

I have around £300K in equity in the former marital home.

The former marital home is occupied by my former wife & child and is up for sale. I don't live at the former marital home, as my work is 150 miles away (no work for me in the area).

My question is this: if I go bankrupt what happens to the former marital home ? I am paying the mortgage on the property (I rent a small place close to my work) and need to keep a roof over my former wife & son's heads.

Advice please ?

debt_doctor

Woaaa!

Bankruptcy would be a financial disaster. Once the house sells, get your share of the equity and pay off your debts - quite possibly full n finals at around 50%.

DD

National_Debtline

Hi Farmer jones


I'm afraid if you apply for bankruptcy your former marital home will be sold, although your ex wife and son will be given 12 months to find somewhere else to live. As the amount of equity you have is more than your level of debt you are not actually insolvent and a bankruptcy application should be declined.


As debt doctor points out, you should sell the house yourself and use the proceeds to settle the debts rather than apply for bankruptcy. Alternatively you may be able to continue in the DMP or self negotiate. Good luck with it all.


Susie
@natdebtline

Caz3121

Farmer_jones wrote: »

The former marital home is occupied by my former wife & child and is up for sale.

what was agreed re the house as part of the divorce?

John_Jones

Sounds like a good plan. Go bankrupt, the house is taken to settle your debts, and you get a fresh start.

Hard to see any negatives there at all...

Edited to say, the excess could pay your son!!!8217;s school fees that you were trying to avoid recently. Everyone!!!8217;s a winner.