Hi, I read in the paper that if you are bankrupt and have children you are allowed to stay in your home for twelve month. Does that mean you won't be repossessed if you don't pay your mortgage. We are in negative equity any way? Thanks
No thats only allowable in BR if you continue paying your mortgage and not bought the BI, so the OR wont technically do anything until after the 12 months but within the 3 years.
You can still be repossesed by your mortgage lender if you dont pay.
Jo x
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called: Needafriend's Info on Bankruptcy :-) http://debtfreejo.blogs.bankruptcyhelp.org.uk/ Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
If you are in negative equity anyway, you won't lose your home providing your mortgage payments are up to date. As secured lending is excluded from bankruptcy, you should be fine. Bankruptcy will not effect your secured lenders rights to reposess and sell if you are in arrears. The 12 month rule only applies to a forced sale scenario if you have plenty of equity.
You can nominate a third party to buy your beneficial interest for £1 + costs (£211) and that will mean the property is set aside from the bankruptcy.
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
repossession
Posted - 23 November 2008 : 13:30:40
