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T O P I C R E V I E W
richard
Posted - 14 September 2008 : 06:43:16 *Sigh* So It looks as though i will have to declare myself bankrupt, Im in neg equity with my house as well. What will they do with the house? can i still live here, even though my income only just covers the mortgage? I assume not, but if it is sold and they come up short with the purchaser, does the difference get added onto my total debt? Its all very depressing, but I have to be realistic and do something positive, as at the moment everything is up to date but by the end of the month I will not be able to pay for anything!
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richard
Posted - 15 September 2008 : 06:57:17 Hi Paul. Thanks for your reply, realistically I cannot afford to keep up the repayments on the mortgage and pay all my bills, so the fact im up to date as of today (but not EOM) shall I just not pay any debts? including the mortgage and 'save' some money? But isnt that then useless as it will be taken from me when i do delare BR?
Reviva UK
Posted - 14 September 2008 : 09:13:16 Hi Richard
Sounds like you need to carefully consider what you do next and make sure you get it done in the right order.
Negative Equity - Provided that you include the mortgage company in the sections SECURED & UNSECURED debts on the statement of affairs then any shortfall will be included.
However the shortfall only gets included if you hand the hous back or have it reposessed.
You need to think about the house and decide if you are able to keep up payments if all the other debts had gone. The last thing you need is to go br and then in 6 - 12 months realise that you can't afford the mortgage and if the house was reposessed then you would have a new debt.
Incidentally mortgage companies don't take court action until you have missed 3 months payments and in reality you will be in the house for between 5 - 6 months before having to leave.
So I would recomend the followig.
1. don't rush or panic - the decisions are important 2. get a plan and a time line 3. get a new bank account with the COOP cashminder 4. speak to an expert who can give you some guidance about what to do and more importantly what NOT to do.
hope this helps
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
