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m.1
New Member
82 Posts |
 Posted - 17 September 2008 : 20:14:18
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My husband and I have been separted since June last year, he has just informed me that he is declaring himself bankrupt and handing back the keys to the property that we had a joint mortgage on. We had a joint secured loan on the property and he says that the mortgage company will pursue me for this as there is not enough equity to pay it off. I tried to take my name off of the mortgage when we separted but heard nothing back from the mortgage company. I am obviously paying rent for where I live and I am a single mother. Please advise my best course of action.
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 17 September 2008 : 20:39:11
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Hi m1 and a verey warm welcome to you.
I am not sure on how his BR would affect you but please hang on in there and someone who knows will be along soon to be able to help and advise you.
In the meantime keep reading and keep posting, they wont be long.:-)
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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John
New Member
United Kingdom
73 Posts |
Posted - 17 September 2008 : 23:13:14
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Hi m1
the secured loan is in joint names and I assume the mortgage still is too.
Well, if the house is in negative equity then your husband can still keep the property after bankruptcy as long as he continues to pay the mortgage and secured loan. If part of his plan is to leave the property once bankrupt because the mortgage and secured loan are no longer affordable then the property will eventually be repossessed and likely sold at auction.
Whatever the shortfall is between sale price and the outstanding debt on the mortgage and secured loan then becomes unsecured. As a bankrupt your husband will no longer be legally liable for the shortfall. As each borrowing is in joint names the full outstsanding amount will fall to you.
What you need to establish is, is your husband leaving the property? If so what is the likely shortfall figure going to be? Is there anyway for you to pay this amount?
If the debts fall to you and you cannot pay then the 2 lenders have choices in how they choose to proceed all of which will impact on you.
In a worst case scenario, one way to be free of these potential debts is for you to declare your own bankruptcy.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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m.1
New Member
82 Posts |
Posted - 18 September 2008 : 13:05:20
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He has told me he is handing back the keys to the mortgage lender, therefore should I wait until I know he has done this or act now? If I do declare myself bankrupt am I right in thinking this lasts for two years?
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m.1
New Member
82 Posts |
Posted - 18 September 2008 : 13:23:26
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Have just received an email from him asking if I will make a token gesture to pay some of the shortfall on the loan until he is out of br?
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John
New Member
United Kingdom
73 Posts |
Posted - 18 September 2008 : 13:44:52
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Hi
until you are solely liable for the shortfall which cannot be established until the property is actually sold, you are not insolvent therefore cannot declare bankruptcy.
Not sure what your ex means by a token gesture towards the shortfall as you won't have to pay it in BR and neither will he.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 18 September 2008 : 13:56:49
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M1 Bankruptcy lasts a year usually till discharge, it could be less if the OR has finshed working on the case.
The fact we have been BR stays on you credit file for max 6 years as i am aware.
Hope this helps a bit.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Please advise my best course of action
