advice on house and bankruptcy

[wendy67]

Can anyone advise me, if we go bankrupt and we are not behind with mortgage payments will they still repossess our house , house is in negative equity at the moment could they wait until house prices go up and then go for the house....really worried and advice would be welcome. Also my partner might be made redundant within six months, would we be best to wait until then to go bankrupt ? He is due a sum of money and we are worried that they will want it all ? Is there a way of avoiding this ?

 

many thanks

 

ann622

[debtinfo]

ok

 

the house - If you are up to date with the payments the mortgage company will not repossess. If it is in negative equity then the the OR will offer for you to buy it back for £1 plus legal costs. The value is dependant on when the transaction goes through not at the date of the bankruptcy order. The OR has up to 3 years to deal with the property but will do it as soon as possible, average times are 6-12 months but as i say legaly they have 3 years to deal with the property

 

Redundancy - If he receives redundancy during the bankruptcy the OR will take the compensation part, he will be allowed to keep the notice pay, back pay and holiday pay parts, the compensation part is usually the much larger part.

[varda]

You sound very much like you are in a simialr situation to me and my husband. We have £51k of unsecured debt. We are currently paying via a Debt Manangement Plan with the CCCS.

We have a mortgage for £145k which is all paid up to date and a secured loan of £51k that is also paid up to date. Our house is worth approx. £195k to £200k so there is very little equity in it.

I am considering a joint Bankruptcy but don't want to lose our home as my OAP mother lives with us and we have an 8 year old son. We are both full time employed but have just got into a mess and can't see a way out. The DMP will take about 15 years at the rate we are paying. I also have a car which is subject to HP, it's worth about £3k but has about 2 years left on the HP agreement to pay.

I would just like to know the best way forward also.

[wendy67]

It's so hard is'nt it , knowing which way to turn, think we will end up going bankrupt as we don't want the rest of our life worrying about paying it all back, don't know about you but the debt is just getting higher and higher with charges and such. Can't see us being able to keep the house , you might have a better case with your mum being dependent on you ? worth enquiring to see if it will make a difference ? Good luck....think we are going to need it !

 

 

 

ann622

[debtinfo]

The key thing here is that you need to be sure about you position with the property, get a few valuations. The mother being dependant is unlikely to save the property in the long run if they were going to sell it but it may delay it a little