tad_admin Staff asked 6 years ago

I have a loan that I can not afford to pay back.
If I do not pay, will they force me to sell my home? I only own half and my name is not on the deeds.
Would going bankrupt be the best option?

3 Answers
answered 6 years ago

In a bankruptcy property that you own, or own a part of, have an interest in will be investigated to see if money can be raised to pay into the bankruptcy. This means that the property may be at risk if there is any equity in the property that you are entitled to. Without knowing a lot more detail it would not be possible to say whether bankruptcy is a good idea or whether it is something that you should absolutely avoid. This loan could be secured on the property or just an unsecured personal loan and it may mean that they can force the sale of the house. If you contact a free debt advice charity first they will be able to prepare a financial statement looking at your income, daily living costs, the debts that you have and will look at assets and any other areas relevant to your situation. Looking at this in detail will allow them to tell you about all the methods that you could choose, or your creditors could use, for dealing with your debts.

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 6 years ago

In a bankruptcy property that you own, or own a part of, have an interest in will be investigated to see if money can be raised to pay into the bankruptcy. This means that the property may be at risk if there is any equity in the property that you are entitled to. Without knowing a lot more detail it would not be possible to say whether bankruptcy is a good idea or whether it is something that you should absolutely avoid. This loan could be secured on the property or just an unsecured personal loan and it may mean that they can force the sale of the house. If you contact a free debt advice charity first they will be able to prepare a financial statement looking at your income, daily living costs, the debts that you have and will look at assets and any other areas relevant to your situation. Looking at this in detail will allow them to tell you about all the methods that you could choose, or your creditors could use, for dealing with your debts.

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 6 years ago

Taking a debtor bankrupt or forcing the sale of a property are two means of enforcement that a creditor could pursue, though it is often a last resort for them to do so. In your case the options open to your creditor and the consequences of this will depend on whether you are deemed to have a ‘beneficial interest’ in the property and whether there is any equity in it. Likewise, the suitability of bankruptcy as a means for you to deal with your debt will depend upon the specifics of your situation. If you have contributed towards the purchase of the property (e.g. through mortgage or deposit payments) then you may well have a beneficial interest (though this is a complex area and it can be difficult to prove if you are not named on the deeds) and so your property could ultimately be at risk. I would encourage you to seek free debt advice regarding your options.

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