I currently own a house which is worth 200k, am 3k behind with mortgage payments, I owe 182k on the mortgage and also have a charging order for 25k from Northern Rock for an un secued loan that I couldn't afford to pay! If I were to declare myself bankrupt, would ALL that go away?? I am desperate now!!
Hi Steve7 & welcome to the forum If you were to find yourself alternative accommodation, post the keys to your property to NR with a letter advising them that you no longer want to keep or live at the property, then petition for your bankruptcy. The property would be sold by NR, probably at auction. With the market as it is, let's say NR sell for around 70% of the current value (£140K) you would then be liable for the shortfall of £67K plus £3K arrears. The £70K would be written off in your bankruptcy together with any other unsecured debts you may have such as personal loans and credit cards.
I am desperate now!!
Posted - 07 August 2008 : 01:37:20
