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paul.c
Junior Member
172 Posts |
 Posted - 21 August 2008 : 09:25:17
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I remortgaged my property earlier this year, enabling me to pay off an ill advised secured loan from Firstplus. The remortgage was for 95% of the property value, which back 4 months ago a surveyor estimated at £140,000. However, i am due to go bankrupt tomorrow and had an estate agent value the property last week. They advised its current value is £99,950 and were very surprised at the recent remortgage valuation. Hence i am in significant negative equity. The new mortgage payments are crippling, but i have always made the payments, using money off credit cards, etc. Now even, with bankruptcy to deal with £30k of credit card debt, i am not sure how long i can last paying a mortgage on a house which is worth over £40k less.
What should i do? If i miss mortgage repayments during my bankruptcy and risk repossession, does the lender then pursue the shortfall between mortgage and house value?
What should i do? i don't want to loose the family home, but at the same time, its becoming a bigger burden month on month
help!
i submit my bankruptcy petition tomorrow and have a few questions regarding completing the forms:
1. In Section 4 in my statement of affairs, in list of secured creditors can you advise what i should be entering in column B (what of yours is claimed and what is its present value)? My mortgage is for £133,000 and the house was valued last week at £99,950.
2. Under Section 5.2 - should this list be credit cards only - with 5.4 overleaf being for bank accounts? - otherwise the same information would go into both?
3. What happens if i change jobs and as a result my income changes before i am discharged?
thanks
Paul
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BankruptC
Senior Member
1030 Posts |
Posted - 21 August 2008 : 12:47:12
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Hi Paul,
My husband and I were in a very similar situation to you a few weeks ago. We too had a house in negative equity with a huge mortgage and secured loan to pay. We planned to go BR in September and had to make a decision about the house. We saw BR as a way to achieve a fresh start and having initially planned to keep the house and struggle on with the mortgage payments, we soon realised our 'fresh start' would not really be that great with a huge mortgage hanging over our necks and a house in negative equity. We therefore made the decision to leave the house, move into a rented property and hand back the keys to the mortgage company. This way we really will be debt free after our BR and will be able to start again. The shortfall of the mortgage and the secured loan will be captured in the bankruptcy as we will list it on our statement of affairs, but as far as I know (tell me if I'm wrong, experts!), if you were to miss payments AFTER BR, you would be liable for the shortfall.
Only you can make this decision at the end of the day, but I just wanted to share our experience and how we came to our decision.
With regards to your SoA questions, I'm not sure about question 1.
2. You have to list credit cards in both sections if I remember correctly.
3. If your income increases before discharge, you are obliged to inform the OR who will then reassess your IPA (or set one up if not done before) prior to your discharge.
Hope that helped a little.
All the best with your decisions and keep asking the questions!
CG. x
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John
New Member
United Kingdom
73 Posts |
Posted - 21 August 2008 : 16:37:31
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Hi
what of yours is claimed?
The answer is your property.
(try to write the full address or just enter property).
What is it's present value?
The answer being £99,950
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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