I'm a bit confused about what happens to the negative equity in our house.
We are filing for bankruptcy at the end of this month and have about £20K of negative equity in the house. I took legal advice and was told that this would be added to the bankruptcy debt if the lenders repossessed after we are made bankrupt but I've read elsewhere in the forums that we should make sure that repossession happens before we file for bankruptcy.
We don't want to keep the house but becoming saddled with £20K of negative equity debt after bankruptcy will be a disaster.
The timing of your bankruptcy does not alter the fact that there is an unsecured element of the secured lenders claim which will be captured under the bankruptcy. You will be discharged from this debt as a result of the bankruptcy order.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
Confused about negative equity
Posted - 05 July 2008 : 20:25:19
