Going to go Bankrupt advice please

jones97

Hi I have a house with my ex and he left the home and I have a child and I can’t afford the house anymore . He has left me with debt too. So I have put house up for sale but not sold . I’m drowning in arrears with payments on mortgage. So I have no choice but to go bankrupt. I’ve had advise and this is what I have been advised. As we are both on the house does anyone know how this will work if I go bankrupt and he isn’t . What will happen with house . 

Thank you 

elsien

Who have you had the advice from, as if it’s one of the debt charities they should have been able to answer any questions that you had. 

Are the mortgage company not chasing him for payment as well if it’s a joint mortgage?
Were you married or living together and is he your child’s father? (Nor relevant to the bankruptcy but would help with the bigger picture.) 

JCS1

Who have you taken advice from?  Bankruptcy only covers unsecured debt, the mortgage is secured so would not be included (until such as time as it is sold and then the debt would become unsecured and would then go in to your BR - just make sure you do not sign anything).  
Also, is there any equity in the property?

jones97

We aren't married and yes he is the child's father. Yes they have chased him but he isn't bothered. I have now submitted my application for BR . It has taken my house into the application for BR. 

JCS1

But your house as a secured debt is not included in your bankruptcy.  Is there any equity?

fatbelly

The OR will give him the opportunity to buy your beneficial interest. 
I assume you're not paying the mortgage so the lender will start proceedings for possession and any eventual shortfall will be covered by the bankruptcy as far as you are concerned. Earlier advice not to sign anything was good.
https://debtcamel.co.uk/repossession-deed-of-acknowledgement/

Fighter1986

If the house becomes reposessed by the bank (which it sounds like it will soon enough), the bank will auction the property off.

Any shortfall between how much you owed on the mortgage, and how much they sold the house for, will become a joint unsecured liability.

At this point, the debt would form part of your bankruptcy (as the account existed at the time you declared BR, even if you declare BR before the house is reposessed). You would not be liable for it - your ex would then become legally liable for the entire shortfall on the mortgage.

If however, the lender sell the house for more than you owe on the mortgage (when all the extra interest, fees, arrears etc are taken into account), half will go to your ex, and half will go to the lenders that were included in your bankruptcy.

The only way to keep the house would be to get the mortgage back up to date and keep paying it but from what you've said - this isn't financially viable for you - and even if it was, you would still have your ex' name on the mortgage and deeds, like a sword of damacles hanging over you. I wouldn't like to be in that position.

Best find a rental you can afford.