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syeddh
Starting Member
6 Posts |
 Posted - 19 January 2009 : 13:05:00
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Hi
Having been out of work since Oct 08, I am currently receiveing Jobseekers Allowance (Income Based). I have also been advised this morning that I will be entitled to mortgage benefit as from 08 Mar 09.
My main concern now is the secured loan and other financial commitments I have - which with all the secured and unsecured debt, amounts to 82,000 (60,000 being secured).
My outstanding mortgage is 225,000 and the value of my property in today''s market is 265,000.
My question is that on declaring bankruptcy, on the basis that the sale of the property is delayed for 1-2 years, as I have a family of 3 children (ages 7, 6 and 9 months), and by delaying the sale for a period of time, the value goes down to, for example, 225k (being the outstanding amount on the mortgage)- what happens to the secured debt at this stage?
Regards |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 19 January 2009 : 14:27:19
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Hi Syeddh and welcome to the forum.
Don't automaticall yassume that just because you are going BR that you will lose your home. Secured lending is excluded from BR and a forced sale will only occur if there is plenty of equity and you cannot release it to the OR/trustee by way of remortgage.
Your "beneficial interest" will need to be realised for the benefit of your creditors. As the property is in negative equity, you will be able to nominate a 3rd party who can buy your BI for the nominal sum of £1 + costs (circa £211).
Please be advised that BR will not discharge you from your duty to keep mortgage/secured loan payments up to date, unless of course you want the property to be reposessed by the lender(s).
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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Hi Having been out of work since Oct 08
