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| Badgergirl |
Posted - 02 January 2010 : 22:53:38
Hi, I'm wondering if you might have any advice on housing...My husband and I have been advised by CCCS to declare ourselves bankrupt. This does seem to be the only option for us but my main concern is housing as we have a four week old baby. We currently have a 100% mortgage. None of our other debts are secured against the house but it is unlikely that it will have increased in value since we bought it. We will be able to keep up payments on the mortgage. Since we will be able to do this is there any chance we may be able to keep the house or is this wishfull thinking!? It would actually be quite difficult to find rented accomodation at a lower cost than our current monthly mortgage payments and i wonder if this might be taken into consideration?. My main questions/concerns are: If the house is taken will we have time to find an alternative (I read that sometimes you are allowed up to a year to find another place- do you have any exeperience of this being the case?) Also will it be possible to rent somewhere with bankruptcy on our credit score?
Many thanks for your help |
| 2 L A T E S T R E P L I E S (Newest First) |
| Housing |
Posted - 03 January 2010 : 18:44:01
Hello badgergirl,
Welcome to the forum and sorry to learn of your problems. However, as has already been said by John, from what you have described, you may well be in a position to keep the property if you do go for bankruptcy.
You may want to check the valuation with some local estate agents before you file for BR. If you say you are thinking of relocating, they will be pleased to give you a market appraisal and that will not cost you anything. I suggest you may want to get 2 or 3 valuations done as valuation is an art not a science!
I would not tell the estate agents that you are considering BR as they may not give you any priority for the valuation if they can forsee there is no instruction coming their way!!
When you have the valuations you will be able to compare that with your outstanding mortgage to see if it has any equity.
Once you have done that and you are sure BR is the right choice, then follow the steps that John has suggested - it is a simple process generally.
Post back when you have the valuations and if you have more questions, I am sure people will try to assist you.
In the meantime, good luck, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
| John |
Posted - 03 January 2010 : 00:31:07
Hi
if you have a joint mortgage which you are able to afford after bankruptcy, then provided the property is in negative equity you will likely keep it.
Even with negative equity you each still have what is known as a Beneficial Interest (BI) in the property which will, on declaring bankruptcy become the OR's. However, if it has no equitable value, then you can buy your husbands BI and he yours for £1 each.
The cost would be £211 + £1 for each BI = £213 in total.
If you have equity in the property then a forced sale may be necessary and as you are a family you will be given best part of 12 months to seek alternative accomodation, provided you keep up the mortgage as if you don't the lender can repossess at any time.
If you do end up having to find rented accomodation it's easier through a private landlord than through a letting agency when bankrupt.
John White
Independent Debt Consultant
Specialising in Bankruptcy |
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