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buzzrock
New Member
72 Posts |
 Posted - 31 July 2009 : 16:52:12
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Hi
Myself and husband are both going BR and have stopped paying mortgage and secured loan so we can afford to do this!
Is it true we can stay in the house until we get evicted even if we are not paying the mortgage?
We are hoping to save enough money so we can pay bond and 6 months rent when the time arises.
We have not asked for the BR papers yet because we do not have all the money together for the BR.
Are we doing the right thing?in the right order?...I feel sick!!!
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 17:23:13
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Hi Buzzrock
I believe you are doing the correct thing in not paying the mortgage, if you intend going bankrupt and moving into rented accomodation. There is nothing to stop you staying in the house until you are evicted. What I would say is you have to be careful of the timescale of the eviction notice, and of course all the hassle and stress you will have to put up with by not paying the mortgage.
It is normally around 3 missed payments before anything drastic happens so be prepared for this, although it has been known for people to miss 6 months or more before an eviction notice.
I would stop paying everyone and save the money as quick as possible, move into rented accomodation then go bankrupt.
All the best
debtrider |
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buzzrock
New Member
72 Posts |
Posted - 31 July 2009 : 17:41:35
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Thanks Debtrider
Did you mean that if we went bankrupt first and were discharged before we even got repossessed that we would be liable to pay the negative equity?
If we eventually moved into rented then went BR would the negative equity go straight onto BR?
In the meantime wouldn't we get bailiffs?
Would renting first and not paying mortgage look as though we have purposefully made ourselves homeless?
I have read so many posts on here I am confused
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 18:07:33
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Hi again Buzzrock
Did not know you were in negative equity with the house.
If you went bankrupt the OR would not touch you home because there is no equity, so as long as you keep up the repayments then you would still be able to stay in the house.
Are you looking at moving into rented accommodation because it would be cheaper?
The Bailiffs would probable make an appearance if you missed more than 3 months payments.
If you did move into rented accommodation after missing mortgage payments, then I cannot see this being a problem, as I would think many people do it prior to bankruptcy.
If you move out into rented accommodation and go bankrupt and the house is in negative equity then I am not sure what happens, because the house would be worth less than the outstanding mortgage balance. All unsecured loans are included in your bankruptcy but not secured, the house is secured so not sure what happens in this instance.
debtrider
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 18:24:05
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Hi Buzzrock
Just found out another bit of information with regard to your negative equity if your house is repossesed.
Any shortfall when the house is sold will become and unsecured debt to yourself, and can be included in your bankruptcy.
debtrider |
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buzzrock
New Member
72 Posts |
Posted - 31 July 2009 : 20:04:50
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Thanks again Debtrider
Yes we are looking to move so it would be cheaper.
Thanks for finding out about the shortfall becoming an unsecured debt. 
One more question, once we've moved into rented and BR and paying out less money would that then mean we would have an IPA/O?
Buzzrock
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debtrider
Junior Member
494 Posts |
Posted - 31 July 2009 : 22:06:36
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Hi buzzrock
If you have more than £100 disposable income then you would pay into a IPA/O.
So would you be any better off by moving, think about it.
At least if you stay in your present home it would still be your own in negative equity.
Debtrider
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RHB
Senior Member
1159 Posts |
Posted - 01 August 2009 : 08:28:04
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Of course, any IPA you get would only last 3 years BUT if you tried to keep your home & then post bankruptcy couldn't, you would still be left with the problem of any shortfall.
I think if you know you can't comfortabbly afford the mortgage & secured loan payments, then it is a sensible idea to get it all wrapped up in bankruptcy & find somewhere that you can afford. |
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buzzrock
New Member
72 Posts |
Posted - 05 August 2009 : 12:02:30
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Thanks for advice all.
If we went BR before renting and we don't make mortgage and secured loan payments after BR would the OR want all our excess money or would they allow us to save it to rent somewhere?
Has anyone else waited to get repossessed first, then go BR once they are renting?
Sorry to keep banging on!!! |
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Jane.l
Average Member
511 Posts |
Posted - 05 August 2009 : 12:11:31
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We had the same dilemma, but in my opinion, I thought it was better for us to get out very early on, as you will have trouble renting once you are bankrupt or you have defaults on your credit file.
The other argument was that we could have stayed longer in our house for free and saved up some money. Some rental places will only accept bankrupts with the full 6 months rent in advance or guarantor, etc
So it is up to you, but personally, I hated that house and could not wait to get out, the thought of phone calls and doorstep visits from debt collectors was awful and I just wanted to avoid it
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buzzrock
New Member
72 Posts |
Posted - 05 August 2009 : 18:33:26
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Thanks Jane
That's exactly what we can't decide between, we do already have defaults on our mortgage (and were threatened with repo last year) but we don't have the 6 months rent at the minute.
I'm not sure how long it will take for the house to get repossessed and worried about feeling like a prisoner in my home, fearful of the phone ringing or that knock on the door!!!
All I want is a debt free life and a happy and healthy family but all this worry over money is affecting my nerves and making my head spin!
I can't say these things out loud and find it easier to type it on here just to get it off my chest.
I can't wait to get out of this house either.
Done moaning
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Topic |
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new user going BR with negative equity
