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Help to Buy loan after bankruptcy

Rumba
Posts: 10 Forumite

Me and my partner have been considering bankruptcy for a while now.
Stepchange advised us a 20 year DMP was the best route to deal with our debts as we are homeowners.
Hoping to be out of debt sooner than that so we can get on with our lives so just after a bit of advice before we press the bankruptcy button.
After reading the useful information on debt camel I'm planning to stop making our mortgage payments to save up for the fees etc, then walking away from our home for it to be repossessed and we will rent.
When we bought our new build we used the Help to Buy equity loan, what happens to this when we go bankrupt? Will it be written off when house is repossessed?
I can't find any guidance about this anywhere so hoping someone can help.
Thanks in advance
Stepchange advised us a 20 year DMP was the best route to deal with our debts as we are homeowners.
Hoping to be out of debt sooner than that so we can get on with our lives so just after a bit of advice before we press the bankruptcy button.
After reading the useful information on debt camel I'm planning to stop making our mortgage payments to save up for the fees etc, then walking away from our home for it to be repossessed and we will rent.
When we bought our new build we used the Help to Buy equity loan, what happens to this when we go bankrupt? Will it be written off when house is repossessed?
I can't find any guidance about this anywhere so hoping someone can help.
Thanks in advance
0
Comments
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If the proceeds of the house sale won’t pay it off then it’ll prove in your bankruptcy as a contingent debt. What that essentially means is that, yes, it’ll be written off.0
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