Bankruptcy & Property with Huge Negative Equity

fatbelly

You could probably stop paying the mortgage and stay there 18-24 months. Depends on the lender. I have a client who hasn't paid the mortgage for 3 years. Still there with an extended family. Prime lender, lots of formal complaints

luvchocolate

Also if you move out and then go BR...and my repossession took over a year. 
Yes any shortfall will go into your BR as a pre BR loan...but you will be liable for council tax until repossessed. 
Remember BR is a line in the sand 

NickS12

sourcrates said:

You can go bankrupt in as little as 48 hrs, house repossession can take many months, then they have to sell it.

Does your partner own or rent there place?

She rents council property 

ManyWays

luvchocolate said:

Also if you move out and then go BR...and my repossession took over a year. 
Yes any shortfall will go into your BR as a pre BR loan...but you will be liable for council tax until repossessed. 
Remember BR is a line in the sand 

The treatment of council tax depends on the local council, here for example is one council that exempts someone who has gone bankrupt https://new.haringey.gov.uk/council-tax/council-tax-discounts-reductions-exemptions/council-tax-discounts-exemptions-empty-properties
If they don't, then there is a possibility of a Section 13A claim against the council.
The local Citizens Advice can advise on this. 

MEM62

NickS12 said:

sourcrates said:

You can go bankrupt in as little as 48 hrs, house repossession can take many months, then they have to sell it.

Does your partner own or rent there place?

She rents council property 

Maybe hanging onto the house might be a good long-term strategy.  There will unlikely be a point where the OR is interested.  With the rest of your debts extinguished and your partner's income contributing, keeping the house could be affordable in the short term.  You could then make a long term plan for changing the mortgage to a repayment type or looking at what options may be available to repay the capital further down the line.  Over time the property should be an appreciating asset.  

ManyWays

MEM62 said:

Maybe hanging onto the house might be a good long-term strategy.  There will unlikely be a point where the OR is interested.  With the rest of your debts extinguished and your partner's income contributing, keeping the house could be affordable in the short term.  You could then make a long term plan for changing the mortgage to a repayment type or looking at what options may be available to repay the capital further down the line.  Over time the property should be an appreciating asset.  

His property massive negative equity. And his partner has a council tenancy, that too is an asset. They can only keep one of them, it looks like an easy decision to me. 

MEM62

ManyWays said:

MEM62 said:

Maybe hanging onto the house might be a good long-term strategy.  There will unlikely be a point where the OR is interested.  With the rest of your debts extinguished and your partner's income contributing, keeping the house could be affordable in the short term.  You could then make a long term plan for changing the mortgage to a repayment type or looking at what options may be available to repay the capital further down the line.  Over time the property should be an appreciating asset.  

His property massive negative equity. And his partner has a council tenancy, that too is an asset. They can only keep one of them, it looks like an easy decision to me. 

Rent and you are paying forever.  Hanging onto the house and sorting repayment of the mortgage when they are in a better financial position places them in a much better position in the long term.