IVA - Bankruptcy - House - Help!

[max1980]

My self and my partner (now ex) are in an IVA but seperate payments. He has not paid his for 3 months and is going bankrupt.

I have been left to pay everything, bills, mortgage, secured loan..... I have now missed 2 mortgage payments NRock (paid them a small ammount last month) and im about to miss a 3rd NRock and 1 IVA payment. I am struggling and considering bankruptcy my self. After paying all the bills, mortgage, loan, food, fuel, nursery...[:(] Im about -£100. Can anyone advise me on the best course of action?

Our house has just been valued at £110'000, £95'000 approx balance on the mortgage, so £15000 equity. Secured loan balance is £12000 approx. Should I wait for him to go bankrupt and see what happens with the house? We dont want to be left with a shortfall when its sold on. I know the house will be lost as it has equity and im pretty ok for that to heppen, I really want a fresh start but I dont want to be left paying for a house I no longer own/live in. Please help!! Many thanks

[size5]

You need to speak to your IP, but from what you say you cannot actually exist as it is so maybe BR is not such a bad thing for you as well.

If the house has to go, which looks likely simply because you cannot afford it, then any shortfall incurred will be encompassed by your bankruptcy anyway, so it may be time for a fresh start.

Good luck and regards.

[kallis3]

I totally agree with Size5.

[Julie]

I also think you need to get legal advice as there are children and a home invloved.

Good luck xx

[kallis3]

Isn't there something with BR as well which says that if the house is to be sold, if there are children involved, you have twelve months to sort it out?

[Michael Peoples]

That is true Jan but if the mortgage or secured loan are not paid the house will be repossessed. I would certainly advise contacting the IP and paying the mortgage in priority over everything else.

[max1980]

Thanks everyone.

What about the fact that the joint mortgage holder (my ex) is going bankrupt as we speak.

What does that mean for the house/mortgage?

He is moving out into a fancy appartment in a few weeks and im left paying the lot which is all in joint names!!!!!!

From what i know, if i cannot afford to buy his equity, which i cant, the house will be reposessed under his bankruptcy??

Bit confused still.

[Michael Peoples]

There is no equity in the property as after the secured loan there is only £3000 left. This would be eaten up in the costs of an estate agent and solicitor even if you got the full price so you could buy your ex's interest for the minimum £211. You would need legal advice as to the future but I do not think you have anything to fear from bankruptcy.

[max1980]

Michael,

Im not sure what you are saying. I have nothing to fear fom bankruptcy?

Im not afraid to go bankrupt, but i dont want to be left a shortfall if the house is reposessed then sold. Is it true that any shortfall is then unsecured and will be included in my bankruptcy?

What will happen when my ex goes bankrupt before me?

[Michael Peoples]

If your ex goes bankrupt you can buy his interest in the property for a nominal sum and you will keep the property provided you can maintain the payments to the mortgage and secured loan. If the property is repossessed any shortfall would be unsecured and be included in any bankruptcy.

[max1980]

Thank you Michael!

That would be the perfect solution but Im in an IVA and i doubt ill be able to get a mortgage alone for the sum of the secured loan and the mortgage together!!!
From what i have been told by NRock i would have to put in a single mortgage application and i wouldnt get one withour a huge deposit which i dont have. Looks like the house will be reposessed wether i go bankrupt or not.

Would you advise waiting to see what happens when my ex goes bankrut in the next few weeks, then make my decisions?

Max

[Michael Peoples]

If you want to keep the property N Rock and the secured loan company may accept interest only payments or extend the term. Forget about trying to get a new mortgage as this would be impossible. The current mortgage and secured loan would remain in both names but you should speak to a solicitor to protect yourself and the children from your partner coming back in the future claiming an equitable interest.

[max1980]

I suppose in my heart i dont want to be in this house!!!!! Bad times!

Pus I cannot afford to pay the mortgage, loan, iva plus all the bills etc..... its a huge house to keep on alone.

Im really stuck as to what to do now!

If i have no interest in keeping this house/mortgage when my ex goes BR what will happen then to the house and the secured loan?

Should i start my BR now also?

Im so stressed with it all but thank you for your advice!

[kallis3]

If you are thinking of BR, it might be an idea to seek other accommodation before your credit rating is totally shot.

You could then hand the keys back to the house and the shortfall will included in the BR as Michael and Size5 have both said.

When your ex goes BR, then you will be liable for the full amount of any joint debts.

[max1980]

Thank you

OMG

Will any shortfall be covered in his bankruptcy?