Hi, I am trying to help a friend by getting as much advice as possible together and I think bankruptcy should be a consideration. She owes about £50,000, has a house that has nil/negative equity and is currently on benefits (which are not covering everything). Her concern is that one of her children (who doesnt live with her) has been helping to pay the mortgage and who may lose out if she goes BR. The arrangement was that he would (when she passed on) have a larger share of the proceeds of sale (if any). He has kept a record of what he has contributed but there isnt any formal agreement/will in place. I think because of the level of debt and the fact it is making her ill that she should consider BR as an option. Can anyone advise please. Thanks in advance!
As it is in negative equity at the moment he has a bigger share of nothing at the moment. If/when they buy it back out of a bankruptcy they can then set up whatever agreement that they want, so i dont thing that this has any bearing on her decision.
Like RHB asks she need to look at her ability to repay in the medium to long turn
Hi all and thanks for the replies. She is hoping to go back to work (had been working self employed prior to a car accident). I dont think she's well enough at the moment and am trying to encourage her to make sure she is fully fit before she returns as she needs to be confident in her ability to stick to any agreement she comes to with regard to the debt. I think realistically she wont be returning within 6-12 months. Will she be able to hang on to her house do you think? Thanks again for the advice!
she won't get housing benefits if the house belongs to her son. Better go BR and then let the council pay for the interest while she tries to get herslf back on her feet.
Is Bankruptcy the best option??
Posted - 31 December 2009 : 13:54:43
