I’m just after a little advice and suggestions regarding my property.
I am due to go into Court this Friday to make myself bankrupt with 18k of unsecured debt to various Creditcards and Cataloegues.
My question is regarding my property. House is valued between 75-80k and has a mortgage of 73k and secured loan of 22k against it. I think I am in approximately 20k of negative equity.
It was my intention once the OR gets involved to remain in the property, continue to pay the mortgage and secured loan and buy back the interest in my property at a later date. AT present I can afford to do this and this is how my income and expenditure as been set out on my SOA.
But ……… currently I work for my local Council and there are going to be staff cuts between 25/40% from this Government spending report due in Sept/Oct. Jobs will probably be gone before April 2011.
I have spoken to a few debt advisors (for general advice before court on Friday) who have recommend that I should go ‘all in’ with my bankruptcy and included the mortgage and secured loan in my Bankruptcy as well so I could have a complete clean break from all my debts.
There main reason for this was that if got discharged in say 6-9 months, then lost my job and found it hard to secure employment else where I could end up falling behind with my mortgage/loan payments as well which would end up putting me back in financial problems and could end up leading to repossession and being chased for any debts.
The house is a two bed terrace and only me and my daughter live here. The only reason for me wanting to stay is that is ideal for my daughters school and work.
Could anyone explain what the processes relating to the property are during the BR process and give me any suggestions on what I could/should do in my position.
even if you purchased the Beneficial Interest back and eventually had to petition for Br then the shortfall would still be included in the Br at a future date.
technically you would get the best of both worlds.
the debt ( date of mortgage ) is prior to the bankruptcy
Advice relating to property
Posted - 26 August 2010 : 08:54:56
