Returning to UK, Debt in Spain

[pakanena]

Hi all,

 

My Spanish partner and I bought a house in Spain four years ago. He lost his job at the beginning of the year and obviously financially things got very difficult. We missed three mortgage payments and therefore the repossession order began.

 

We have tried to negotiate with the bank all this year but they would not renegotiate any deal with us, demanding we paid the three payments plus interest instantly. As this amount stood at €5000 approx, we were not in a position to do so.

 

Today we went to Court to collect some papers and the mortgage company is demanding full repayment of the loan plus interest - which currently stands at a total amount of €312000. We have been advised to approach a lawyer to see whether there is any way at all we can negotiate the situation; otherwise we have 10 days before handing the keys back to the house.

 

We understand that the house will then be set for auction by the mortgage lender, and the amount outstanding between what it sells for and what we owe will be due to be paid by us.

 

I was intending to move back to England at the end of this year, but with the present situation I am wondering whether that is advisable.

 

In Spain, a set amount will be taken out of my payslip each month and I will be left with enough basically to eat. I currently rent in a different city as that is where my work is based, and once the repossession has taken place I won't be able to afford the rental, nor the commute costs should I stay with a family member.

 

My question is the following: if I were to return to the UK, what position would I be in if I were to declare bankruptcy? I have debts in the UK (approx. £2000).

 

I am not asking anyone to judge me - I am disgusted with myself that I am in this position but I would greatly appreciate any advice anyone can offer as to whether it would be more beneficial in the long run for me to return to England and initiate a bankruptcy proceeding there.

 

Many thanks in advance.

[cerberusalert]

Neither CAG nor it's members are here to judge you, I'm afraid it's a fact of life that people get into financial difficulties & not necessarily by their own making especially nowadays with the state of the world economy as it is.

 

There is nothing to stop you from returning to the UK and starting bankruptcy proceedings here... in fact it may be easier than if you were to do it in Spain but it will cost in the region of £750 each if you were both to do it. Have a read of http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187323 which gives a basic guide and provides links to free sources of information. With you being in an EU country there are reciprocal agreements in place so you would need to speak to someone who is familiar with these cross border debt problems.