tad_admin Staff asked 9 years ago

Two years ago my husband left the marital home,left me with all the debts AND mortgage payments,I (well we,but he’s no where to be found!) owe around 15’000 pounds out to creditors,I did my best to consolodate these debts,but its impossible alone,AND Iam also keeping the mortgage payments going best I can,and I’am (well,technically ‘we’ are,but like i said before,husband left two years ago) in around 1000 pounds arrears with the mortgage payments. I really feel bankruptcy may be my best option,but dont know what would happen to my house,i desparately do not want to loose it as I put 14’000 pounds deposit down (luckily,I had a deed of trust drawn up at the solicitors to prove this was MY deposit and my husband didnt put any money in) The house is not going to make a profit if was sold,(if anything,would maybe not even cover the mortgage) Its a very small mortgage of 75’000,but I had the house valued at 72’000. Advice greatly needed & much appreciated!!

3 Answers
answered 9 years ago

If a property is in negative equity at the time of bankruptcy the Official Receiver will retain an interest in the property for approximately another two years. If after this time the property is still deemed to be in negative equity (or have equity of less than £1000) he will discharge his interest in the property and essentially hand ownership back to the bankrupted. However should the property have increased in value and contain equity (of more than £1000) then the Official Receiver may seek to release this equity by offering you or a third party the opportunity of buying out this interest. Alternatively he may decide to place a Charging Order on the property on the sum of the equity in the property.

Please note that by going bankrupt you will be releasing your sole liability for the debt. Your partner however will still be liable if the debts were taken out in joint names. Should it therefore transpire that you get to keep the property following bankruptcy the creditors could still seek to take further action against the property for the debts in your ex-partners name. Please see further money advice.

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

answered 9 years ago

contact your morgage provider ask them to put you on interest only payments contact a free debt company [community legal advice] its fundid by citazens advice and thier very good they will make arrangments by contacting your debts and come to token payments to them! ive been through the same and im a bloke! more debt four years on dont go bankrupt dont go solvant hang in thier and its tight lines !.

answered 7 years ago

I am not with my partner any more and we have a morgage together and want to get my name off the morgage and sigh over to my ex partner but has been in to see about and said cant do it cause we have a ccj against us it will take 6 years is that right?

 

ANSWER TO YOUR QUESTION:

Mortgage lenders make decisions based on their own lending criteria, so each mortgage product that they sell will have its own set of “rules” to follow about who they are willing to offer that particular mortgage. So it could be that your ex partner is correct, it could be that the mortgage that is currently in place is not available to someone who has a County Court Judgement.

The lender could also be considering other things, affordability, amount of loan in relation to the value of the property, length of time in employment, these could also play a part in deciding whether to lend. As the mortgage is also in your name you could contact them and ask about the reasons that this is not possible and to see if there are any other products that would allow this.

If you are trying to change to a different mortgage then it may be that you would need the help of a qualified mortgage adviser to look at all of the products available from all lenders, and see if they can find one that fits to your needs.

Money Advice Service has a section on separation, divorce and homes which may be useful. https://www.moneyadviceservice.org.uk/en/categories/your-home-when-you-separate

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.  <a href="http://www.debtadvicefoundation.org/talk-about-debt" title="Debt Advice Foundation website" target='_blank'><b>Click here</b></a> to find out more.

 

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