Jump to content

debt and bankrupcy help

style="text-align: center;">  

Thread Locked

because no one has posted on it for the last 1055 days.

If you need to add something to this thread then


Please click the "Report " link


at the bottom of one of the posts.


If you want to post a new story then


Start your own new thread

That way you will attract more attention to your story and get more visitors and more help 



Recommended Posts


Im looking to get some advice and hope some of the guys on here can help.


MY home is in zero equity and we owe aroung 120k with no arrears,

the house is only worth around 85k with the current climate,


we have other debts which we are in payment plans with several and have defaults on one cc but no ccjs.

i have been offered to move into a family home to help us get on our feet.


question is

will our mortgage company allow us to sell the house and arrange to pay back the shortfall?

is this likely or are they likely to say we cannot sell?

what other options are available,

what would happen if we simply gave the keys back?

what would happen if we decided to go bankrupt with the shortfall?

can we declare bankruptcy without any ccjs ?


we have around 50k unsecured debt and this is taking its toll.

moving to family members home would be a great solution for us but not sure how we should approach the morgage lender.


all help would be greatly appreciated.

Link to post
Share on other sites

  • Replies 132
  • Created
  • Last Reply

Top Posters In This Topic

I am Scottish based so don't take this post as being 100% accurate and possibly someone else will come along and correct me. However in Scotland if you were to Bankrupt the Trustee would not be interested in a negative equity property. Threfore it would be possible to rid yourself of the unsecured debt and keep your home so long as you keep up the mortgage payments. It very much dependes on what you want as the alternative would be to hand back the keys move to new accomodation and throw the shortfall into the Bankruptcy.

Link to post
Share on other sites

Thanks for the reply, we def want to move to rented family accomaodation, prefer not to go bankrupt but to sell house and whatever the shortfall is try to make agreed payments , do you think we can do this ? and if the shortfall is too much to pay monthly can we be made bankrupt? or are they likely to sell debt to dca?

Link to post
Share on other sites


Link to post
Share on other sites

Thanks again, so the best option is to try and sell house if lender allows and then go for bankcruptcy?

can we declare ourself bankcrupt with no ccj just a default on our file?


when you go down that route are all debts written off or do we have to sell our furniture and jewellery or anything of value to pay creditors?


i have been trying to read up on this but it seems it is not straight forward and you still have to pay ur debts?

is this correct or am i not understanding it ?


also we have opened a basic account with the coop will this be allowed if bankcrupt?

will my wages be affected to pay debts off?

couldnt face the shame of my employers knowing ?

just not sure what to do.

Link to post
Share on other sites

I would say you have zero chance with the mortgage company. If you gave the keys back you would still be liable for the full mortgage (nt to mention lots of charges they would add for selling the house). Giving the keys back is an option used in the usa hence why you hear the term foreclosure used in the usa rather than repossession they are different.

Link to post
Share on other sites

I thought the morgage company would refuse but just taking as much advise as i can at the moment,


any suggestions or do we just let the payment go into arrears and have them repossess?


what would that achieve?


the would then sell the house for the max and i would then have the shortfall, what would happen then?


would they have to come to an arrangement for payments or would it then be best to declare bankruptcy?


Link to post
Share on other sites

If the mortgage company sold the house there is a good chance that they will get less for it than you would so its always best to try and sell yourself as you will still have the shortfall, i know you said the rent wouldnt pay the mortgage but if you are in a family members home and therefore paying out less in rent than you were in mortgage, would you be able to make up the shortfall between the rental on your property and the mortgage. If you could it would give you a bit longer to see if the housing market improves and then you could sell when it has.

Could you enter into an IVA for your unsecured debts as that would enable you to keep your house?

If I have been of any help, please click on my star and let me know, thank you.

Link to post
Share on other sites

Thanks for ur reply, we really no longer want to keep the house as we will be able to rent and have money left over to pay debts without struggling every month, if we were to sell at a loss can the shortfall be added to other debts in a dmp or iva?

Link to post
Share on other sites

I am sorry to hear of your problems.

Should you decide to sell your house you would have to do it without the help of estate agents. Because there is no

equity in the house they reckon they won't get paid. Of course it is easier to sell property on line these days but when potential buyers know how

desperate you are to sell, they may well make considerably reduced offers. Are there any Housing Associations in your area who may be prepared

to give you a reasonable offer. Even selling at Auction might be problematic unless you can show the Auctioneers that you have cash behind you to

pay them.

Link to post
Share on other sites

In order to sell at a loss you ahve to first agree this with the mortgage company. The loss would be the shortfall PLUS any fees i.e. the solictors and estate agents would get paid. If they agree then you can agree to add any shortfall ro your DMP.


Successfully claimed back mis-sold PPI (Barclays Bank) 2009-10 (£8500)

Ran a paid-for DMP. Deeply respect those who self-manage a DMP; it is possible to do with the help of fellow CAGGERS

Offered F&F to all my creditors. All closed out including a particularly intransigent and stubborn one - who eventually saw sense after 10 months of nonsense!

Does not condone debt avoidance but violently disagrees with the antics of debt collectors and their behavior towards the ones trying to pay. I am a great believer in what goes around, comes around. Keep up the good fight!

Link to post
Share on other sites

  • 8 months later...

Help and info please,

my husband and i are considering bankrupcy and voluntary repossesion,

we are about to go into morgage arrears and have debts of over 50k and can see no other option.

we have been offered to rent a family members home and want to do this,


we live on our overdraft every month and even then have not enough money left to live each month so borrow from family etc ,


we are in payment arrangements with most creditors but are sinking fast.


should we just let the arrears on morgage start until they start repossesion order or simply ask them to voluntary reposses?


there is negitive equity of around 30k on property.


Also having read up on bankrupcy


can anyone tell me how much we would be allowed for food etc when calculating an income payment form

as i understand we will handave to pay for 3 years.


I have lots of questions and will be taking advice from citizens advice soon .


Any help greatly appreciated.


We live in Scotland.

Link to post
Share on other sites

i've twice that debt and mortgage.


drop everything else and pay the mortgage


list your debts



please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

Link to post
Share on other sites

You cannot just give the house back without any repercussions I'm afraid since its in negative equity


Here are some fact sheets about BK from NDS






here is some more reading






Do you both work? Do you have any dependants?


Ida x

Please contact a member of the site team if you are offered help off the forum for a a paid or no win no fee service.


Please consider making a small donation to help keep this site running

Click here to donate through PayPal (opens in a new window)

Link to post
Share on other sites

also moneysteps may help



Please contact a member of the site team if you are offered help off the forum for a a paid or no win no fee service.


Please consider making a small donation to help keep this site running

Click here to donate through PayPal (opens in a new window)

Link to post
Share on other sites

Thanks for this information,

we have decided that we would like to sell or hand back the keys and do a voluntary repossesion as we no longer want to stay in the house and are just existing every month.


If the morgage company wont allow us to sell do we have to wait until house is sold to go bankrupt and then include the shortfall, we will defonately seek advice from one of the mentioned help lines.


We will also be going into arrears from this month with all our debtors as there is simply not enough money to live on, we intend to have a deposit and rent for our future rental with this money.

Link to post
Share on other sites

Hello there.


You can go bankrupt wheneever you wish, either before or after you hand the house back. Since you took out the mortgage before the dtae oft he bankruptcy order any shortfall would be included. What you must not do, though, is sign a 'deed of acknowledgement' - which has the potential to make you liable for the shortfall debt after the bankruptcy. In short, never sign anything a lender tries to get you to sign unless you know what it is - or that you've sought further advice.


If you have any further questions regarding the process please give me a shout!



Link to post
Share on other sites

Helllo Seq, Thank you for the reply, would you be able to advise me on what would be classed as reasonable living costs when it comes to the official receiver and the soa questions?


we plan to wait about 3 months and pay nothing so we have enough money for rent deposit and br charges,


also we opened a co op basic account last year and about to put our wages etc into this for bills etc,


would we be able to keep this as we need an account for wages etc.


many thanks in advance.

Link to post
Share on other sites


3 adults , me hubby and son ,

me and husband both work and our son is 27 and doing college degree,

he only has bursary and student loan so we dont take money from him,

he pays the internet and the rest he uses for travel books and his car.


can you also advise when we do the soa will it done jointly or separate?


do we need to still pay endowment policy even altho we intend to hand back keys when we have enough for deposit etc.


we have lots of questions and appreciate all the help we can get.



Link to post
Share on other sites

if the endowment if for the mortage then i a think this may be 'cashed in' if any value at the time to go to any creditors

Please contact a member of the site team if you are offered help off the forum for a a paid or no win no fee service.


Please consider making a small donation to help keep this site running

Click here to donate through PayPal (opens in a new window)

Link to post
Share on other sites

  • dx100uk changed the title to cabot and full and final on old barclays loan

  • Recently Browsing   0 Caggers

    • No registered users viewing this page.

  • Have we helped you ...?

  • Create New...