Thinking of Bankrupcy - Can anyone help

Lindawielsolk80

Hi All,

I need some help with a question concerning bankruptcy and housing in the UK. I currently have a £25K debt which has accumulated from credit cards and loans over a period of 4 years. I am thinking of going bankrupt as I lost my job about a year ago and I am struggling with all of this mentally and need a clean slate.

The question I have is that if I go bankrupt, will my flat be taken away from me? I own half of the house and the other half I pay rent on to a housing association.

I look forward to hearing from you with any advice.

Regards, Linda

MEM62

How much equity do you have in the property?  A forced sale may be unlikely in your circumstances.  

stu12345_2

are the creditors chasing you, how soon will you get back into full-time employment 

fatbelly

Lindawielsolk80 said:

Hi All,

I need some help with a question concerning bankruptcy and housing in the UK. I currently have a £25K debt which has accumulated from credit cards and loans over a period of 4 years. I am thinking of going bankrupt as I lost my job about a year ago and I am struggling with all of this mentally and need a clean slate.

The question I have is that if I go bankrupt, will my flat be taken away from me? I own half of the house and the other half I pay rent on to a housing association.

I look forward to hearing from you with any advice.

Regards, Linda

Generally I would not advise a homeowner to go bankrupt. Now you may be in negative equity but the Insolvency Service has 3 years to deal with the property and maximise the return to your creditors. None of us have a crystal ball regarding house prices.

If the debts are all nonpriority consumer credit debts then it seems an extreme reaction to consider bankruptcy.

If you would care to post a statement of affairs - please format for mse - then we can give better help

https://www.lemonfool.co.uk/financecalculators/soa.php