Urgent advice needed

chereb
chereb Posts: 24 Forumite
in Bankruptcy & living with it
My marriage has broken down and whilst in a very unhappy marriage (no excuse ) i have ammassed debts that are bad. I am currently in the family home which is in a joint mortgage. There are also debts in my husbands name and 72k all in. Going forward i am awaiting a house from the council ane the family home will be getting sold once i get something. In meantime he has agreed to cover mortgage payments. I am also disabled and unable to work so surving on benefits at the moment with nothing much left over to pay debts. I think my best prospect at the minute is to go bankrupt. So the house is worth 62k and there is 32k remaning on the mortgage. If the house is sold and the debts in ex name are cleared off and joint loan is it feesable for me after that to declare bankruptcy? Will they ask for money from the sale even if his debts are cleared with it?
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  • fatbelly
    fatbelly Posts: 20,457 Forumite
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    chereb wrote: »
    My marriage has broken down and whilst in a very unhappy marriage (no excuse ) i have ammassed debts that are bad. I am currently in the family home which is in a joint mortgage. There are also debts in my husbands name and 72k all in. Going forward i am awaiting a house from the council ane the family home will be getting sold once i get something. In meantime he has agreed to cover mortgage payments. I am also disabled and unable to work so surving on benefits at the moment with nothing much left over to pay debts. I think my best prospect at the minute is to go bankrupt. So the house is worth 62k and there is 32k remaning on the mortgage. If the house is sold and the debts in ex name are cleared off and joint loan is it feesable for me after that to declare bankruptcy? Will they ask for money from the sale even if his debts are cleared with it?

    I think for you, it's one step at a time.

    Get your new accommodation.

    Get the house sold. It sounds like there is 30k of equity - half of that is coming your way. The only debts automatically paid off on the sale of a house are mortgages and secured loans and charging orders.

    Have a look at the situation then.

    In the meantime if you have non-priority debts like unsecured loans, credit cards, overdrafts, catalogues, you could offer them £1 a month until the situation resolves.

    It's far too early and we don't have the information, to discuss whether one particular strategy (there are many) might be suitable.

    And you have no responsibility to pay husband's debts
  • chereb
    chereb Posts: 24 Forumite
    I would rather his were cleared because he still has a job to consider and also i feel resposnsible as its more my doing than his. You could say i have been buying myself happiness and looking back i spent to feel better. How would i go about making an offer of payment to credit cards? He did offer to pay mortgage until its paid off but realisticly whats to say he wouldnt fimd a partner dowm the line amd suddenly be unwilling to pay anymore. With his income i could afford the repayments but living of an overdraft now and it cant go on. Anyway my unsecured debt totals they would probably sell the house anyway and then either way i would still be doing what i am now.

    There are no secured debts on the property either all just credit cards.
  • silvercar
    silvercar Posts: 46,945 Ambassador
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    How long could it take to be given a council home? Can you continue in the family home until it happens?

    If you use your 15k share of the house sale to go towards his debts, leaving your debts unpaid, that won't look good if you go bankrupt soon after. You risk it being thought that you prioritised some debts over others. In fact if they weren't your debts it will look like you gave money to your ex rather than pay towards your own debts.

    I think you should sort out your housing situation and your split from your ex before considering the next steps.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • chereb
    chereb Posts: 24 Forumite
    It will be at least 6 months before i am rehoused. I can afford to payvery little at the moment. I have even considered taking a 24k secured loan and repaying some if each debts and the joint ones. Then applying to the buy back for rent scheme to try and keep a roof over myself and childrens head. Im really in a bad place at the moment. I have no family to call on and nobody to talk to. I am at the end of my rope.
  • silvercar
    silvercar Posts: 46,945 Ambassador
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    Are you claiming all that you are entitled to? including SMI (support Mortgage Interest)?
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • chereb
    chereb Posts: 24 Forumite
    silvercar wrote: »
    Are you claiming all that you are entitled to? including SMI (support Mortgage Interest)?

    What is SMI? I have not heard of that.
  • fatbelly
    fatbelly Posts: 20,457 Forumite
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    silvercar wrote: »
    If you use your 15k share of the house sale to go towards his debts, leaving your debts unpaid, that won't look good if you go bankrupt soon after. You risk it being thought that you prioritised some debts over others. In fact if they weren't your debts it will look like you gave money to your ex rather than pay towards your own debts.

    The official receiver might try to recover the 15k from your ex!
    chereb wrote: »
    It will be at least 6 months before i am rehoused. I can afford to payvery little at the moment. I have even considered taking a 24k secured loan.

    Please don't - I don't think you would be able to, at least not with a reputable company. The danger would be that some lowlife lender might take advantage.
    chereb wrote: »
    What is SMI? I have not heard of that.

    Support for mortgage interest - the rules are changing but it's a better opion that going into arrears.
  • silvercar
    silvercar Posts: 46,945 Ambassador
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    SMI:

    https://www.gov.uk/support-for-mortgage-interest
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • chereb
    chereb Posts: 24 Forumite
    silvercar wrote: »
    SMI:

    https://www.gov.uk/support-for-mortgage-interest

    It looks like you have to take it as a loan and they add interest as well so that would be adding tonthe problem.
  • fatbelly
    fatbelly Posts: 20,457 Forumite
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    chereb wrote: »
    It looks like you have to take it as a loan and they add interest as well .

    From April that is correct. In your situation It might benefit your husband (because it would mean he didn't have to fork out each month) but it would reduce the equity in the property.

    So while he is paying the full instalments, SMI doesn't really benefit you.
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