If we were to go bankrupt I realsie we would obviously lose our house, but my question is what would happen to any negative equity. There is about a £25,000 shortfall. Would we be liable for this?
It is a myth that you automatically lose your home in BR. Secured lending is excluded from BR for non-saleable assets (ie. those in negative equity). In your case, you can nominate someone to buy your beneficial interest which will be £1 + costs (circe £250). You will still be liable for the mortgage and the negative equity will still stand. However, there are other options for you, so please contact the helpline who would be able to assist you further.
Would we be liable for negative equity ?
Posted - 02 June 2008 : 10:49:45
