My wife and I are considering going bankrupt and have a house with no equity in it. We have around £20,000 negative equity approx. Would the courts seize the property and sell the house even if it would nt cover the amount owed. We are struggling with the payments and are looking to rent our house and move into a cheaper alternative. I would nt want to put a tenant in and then get the property seized. Any advise would be greatly appreciated.
If it is your family home then the OR wld make every effort to sell the BI back to you, but you would need to be able to afford the mortgage.
The OR has different rules for business properties and will not want to sell it back if you have a tenant in, in fact they will take the rent and not py the mortgage with it
so if you want to live there the OR will help facilitate that, if you want to keep it as a business they wont
very unlikely that the OR / courts will seize your house
agree with debt info that the OR will take the rent however, some of the mortgage companies are considering taking the OR to court for the mortgage part of the rent.
mortgage company argument is that they have first charge on the property and as such should have first charge on the rent, its an ongoing argument so cant give a definative answer.
however Simon from what you have typed i would not consider renting your property out, as it will more than likely give you another headache.
The speed at which you go BR (if appropriate) will be defined by how many mortgage payments you have missed and how aggressive some of your creditors are ?
At this early stages of planning to go BR I would suggest speaking to one of the experts to the left who will help you properly prepare including timing for leaving your home and getting rental property.
I used Paul and his team @ Reviva, they helped us through the whole process
Would you be able to afford the mortgage if all your other debts were dealt with in the BR. ie would the money you spend on your unsecured debt, which will cease after BR be enough to cover your mortgage payments?
Hi My wife and I are considering going bankrupt
Posted - 22 July 2010 : 23:48:06
