Im new to the forum and am after some advice please.We have been advised to go BR due to the level of debts and not managing etc. However we have a house that is in negative equity with a secured loan. We dont wish to keep the property as the high bills etc has been a major factor in our debts alongside some personal issues. What we don't know is do we hand the house in before the bankruptcy or afterwards.
We have looked at all angles of keeping living at the house but it just not possible.If we hand the house in after BR do we give the keys to the OR or the mortgage company and how do we explain to the OR we want to leave etc. With regard to I/E.When we do our I/E at the house we have nothing at the end of the month but if we left and rented etc (it maybe that short term we live with one of our families as renting with animals is difficult in our area) obviously then our I/E would be less Can anyone give me any idea of what is allowed for a person for living on a month as im confused by conflicting advice previously given.
Another complication is that at present my husband and I are together however it is unluikely marriage will take this strain as personal bearvements etc has caused us relationshipo problems We lost a child which was the start of our financial complications will we need to provide her death certificate etc is another concern we have Sorry if this all seems a bit unclear but am unsure how to progress now. Thanks in advance for any help
Hi & welcome to the forum as far as the mortgage lender and the OR are concerned it makes little or no difference if you vacate the house before or after BR. But for you, renting is easier before as some landlords apply stricter conditions for BR's.If you lived together with a family member this will drastically reduce your expenditure and as such release signifantly more disposable income to the OR via an IPA. However, you would be free to find your own accommodation whenever you wish and as soon as you do you should inform the OR that your circumstances have changed. You would then need to submit revised I&E.
Hi there - We have gone BR and had our OR interviews. We have a mortgage and secured loan and negative equity and will be moving out once we have found a rental property. We don't want to keep our house as we cannot keep payments up now OH redundant.
I am not an expert but I believe if you don't want to keep the house and there is negative equity, then it is up to you whether you keep payments up and stay or move out. The OR doesn't have anything to do with the sale of the house if he has no interest in it. It will be up to your mortgage provider and secured loan provider to start eviction/repossession proceedings.
Although words will not help, can I just say I am very sorry to hear about your loss.
Take care. Keep posting. You will find lots of help and advice here.
Hi, so sorry to hear about your loss, there is nothing worse in my opinion and debt comes way down the list in comparison to this personal tragedy. However, if you are totally honest and upfront with the OR when you have your interview about how it all started and the fact that the expensive bills etc contributed to your debt problems and you dont want to keep your house the OR will totally understand. I know this because we were in similar situation to yourselves and have had our OR interview and we have just voluntarily surrendered our property back to the mortgage lender. If it sells at a shortfall it will go into our bankrptcy order so i shouldn't worry too much about it. It seems like you've had more than your fair share as it is! Hope this Helps X Helen
hand house in before bankruptcy or afterwards?
Posted - 05 August 2008 : 13:31:39
