tad_admin Staff asked 7 years ago

I have a house in negative equity that myself and ex partner bought in 2006. I have paid the full amount of the mortgage since 2008 when we split up and lived in the property unit 2012 with my now husband. I have now moved out as my ex partner wanted the house, and then changed his mind, and consequently the house has been empty for the past year. I continued struggling to pay the mortgage whilst my husband has paid all the bills for the house we now live in.
My ex partner now wants to sell the house, and refuses to still pay any mortgage whilst we decide what to do. I can no longer afford the mortgage and all my money, plus additional funds from my husband are used to pay the mortgage each month. My ex would be happy to take a loss of £25000 on the house and move on, however I am not happy to lose this much and would be paying it back for the rest of my life, and beyond!
Can I go bankrupt whilst letting the house get repossessed or do I have to wait until its been sold?

4 Answers
answered 7 years ago

You would need to go through your situation in greater detail to see how bankruptcy may impact you, your ex partner and your husband. Bankruptcy could impact your current property whilst dealing with your previous property, it may mean that your liability for the debt is resolved and your ex partner has to pay all of the shortfall debt. There isn’t really enough information to accurately give an answer here. Initially it might be best to take a look at the information provided by Shelter on repossession and handing back property: http://england.shelter.org.uk/

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.

answered 7 years ago

It is usually better to allow the property to be repossessed and sold before going bankrupt as this ensures that all outstanding costs are included in the bankruptcy. However you can go bankrupt before the repossessed property has been sold.

This question has been answered by CAP UK, a leading debt charity offering hope and a solution to anyone in debt.

answered 7 years ago

If my ex went bankrupt last year and now out house that we jointly own that was being rented out has now been repossessed, what happens to the debt?

answered 7 years ago

If my ex went bankrupt last year and now out house that we jointly own that was being rented out has now been repossessed, what happens to the debt?

ANSWER TO QUERY:

If you are referring to a shortfall debt to the mortgage lender, as the sale did not generate sufficient funds to clear the mortgage, then it may be that his liability for the debt will be dealt with in his bankruptcy. This will not affect your liability for the debt from the property. If this was a joint mortgage then the amount you will be asked to pay will be the full amount of the remaining debt.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you need further help, Debt Advice Foundation provides a free, confidential helpline and can advise you. Click here to find out more.

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