Considering bankruptcy and a mortgage

rachel4331

Me and my DH have a joint mortgage of which we have never missed or been late with any repayments over 8 years, including any secured loans on our property.

I am considering BR as I have unsecured debts totalling £38 which will take years to clear and my reduced monthly payments are hardly making a dent to clear this amount.

My question is, if I went BR, how would this affect our mortage and my dh, would we lose home to reposession even tho all my problems are with unsecured debts?

I couldn't face BR if we were to lose our home.

Scarlett.1974

Hi Rachel,

In answer to your question, it all depends on how much equity you have in the house. Is there much? Your husband could buy your share in the equity (I think this is called your beneficial interest), but I'm no expert on this. I'm sure one of the other, more knowledgeable posters will be able to advise you more

debt_doctor

Hi,

It would depend on how much equity you have in your property and the abbility of someone to buy your interest in it. Howmuch equity do you have ?

Best

DD

Scarlett.1974

Have a look here, this might help:

http://www.insolvency.gov.uk/guidanceleaflets/home/home.htm

rachel4331

Approx £10k equity, tops.

Scarlett.1974

So, your share would be £5k - would your H be able to pay this?

rachel4331

Doubt it. He has money problems too (caused by me) but we don't want to make both of us BR.

What happens then if there is no equity then?

Scarlett.1974

If there is no equity and as long as you can afford the mortgage payments (and they're not too high - the OR could look unfavourable on you if you have a massive mortgage and rental in your area is much cheaper) you might not lose your house at all. Have a look at Girlie's thread just below this one, Richard S gives some sound advice on page 2 about this

Also, have you taken any professional advice about this? Because if not, you really must. Payplan, CCCS or CAB will help and advise you (personally I recommend CCCS). One of the conditions of going BR is that you MUST seek professional advice, your petition could be refused otherwise.