Hi, my wife and I live in a house that is solely in my wifes name. We are firmly in negative equity, with the mortgage being 135000 and the resale value of the home being 120000. We are struggling to keep up with mortgage repayments. Can my wife declre herself bankrupt, give that the property is in her sole name, and how does this affect us both? Also, if we default on mortgage payments, what happens then??
The house being in negative equity if you dont wish to stay there then it would have to be repossesed and the mortgage amount would become unsecured and written of in BR.
If you do want to stay then you will be able to but the BI for a £1 plus fees of £211.
If you default on the mortgage then the chances are the house will be repossesed and you would have to make sure that the mortgage was listed in the secured and unsecured sections on the SoA.
If you can afford to stay there by means of being able to afford the mortgage once BR then i would as the spouse/3rd party buy the BI in the house. That way its safe. If you dont pay the mortgage you may have about 5- 6 months before you have to leave and then you need to save up and find a place to rent etc.
Hope that has helped you :-)
Jo
x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Can my wife declare herself bankrupt ?
Posted - 06 November 2008 : 07:24:49
