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| Monkey1979 |
Posted - 19 October 2010 : 21:13:53
Hi,
I've realised the only option I have is to go Bankrupt and have some questions. My girlfriend left me in our house which has a joint mortgate, I can not afford the house and bills alone as well as the other substantial debts. The house is in negative equity;
1. If I just stop paying the mortgage when I go bankrupt, what happens as the mortgate is in joint names?
2. My car is worth well over the 2k allowed so I expect it to go back. I've been told that you get 2k to but another but is that only if you own it, my car is on HP?
Thanks for any replies in advance |
| 4 L A T E S T R E P L I E S (Newest First) |
| chester2005 |
Posted - 20 October 2010 : 23:39:11
it may be worth taking advice from an expert who may be able to give you more options to consider after taking everything into account.
the professional experts on the forum normally offer free initial telephone advice.
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman)
RevivaUK and Paul Johns helped me through it all i can't recommend them enough!! |
| gettingoutofdebt |
Posted - 20 October 2010 : 18:44:34
Yes, although you need to be careful. A lot of mortgage companies will ask you to sign a form if you decide to voluntarily allow the mortgage company to repossess the house. Within the form there is a shortfall clause that states that you are liable for the shortfall.
You can either not bother giving the property up and let the mortgage company repossess it. If this is the case they will still hound you with calls even after declaring BR as it costs them money to repossess it.
The other option is to cross out the shortfall clause, sign the form and send it back to the mortgage company with the keys.
If the mortgage is joint then once one person declares BR the mortgage company will chase the other person for the outstanding amount until they declare BR. |
| Monkey1979 |
Posted - 20 October 2010 : 08:49:47
Hi Al
If I stop paying the mortgage and the house is reposessed, will the shortfall form part of my bankruptcy? My ex can't help and is happy to go BR too ! |
| Bigal4787 |
Posted - 19 October 2010 : 23:58:01
Hi,
1. Why would you stop paying the mortgage if you go bankrupt, as once bankrupt, you would be free of payments to unsecured creditors. But if you stopped paying the mortgage, you would incur arrears, and at somepoint the house would be repossessed, and sold, and if in negative equity possibly with a shortfall( I take it your girlfriend wouldn't take the payments over, or help?)
2. As your car is on HP, and unless it is substantially worth more than the current balance on the loan, the OR would not adopt the agreement, and as the loan agreement has a bankruptcy clause in it, the lender has the option of repossessing it.
As for being given £2,000 for a reasonable replacement, that only comes into effect, if you had a car that had no finance on it, and was worth say £5,000. If that was the case, for arguments sake, you would be allowed £2,000 by the OR or trustee to purchase a reasonable replacement, with the rest going towards the bankruptcy estate.
Big Al |
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