Oops sorry - should have read the whole thread. Thanks FD!
In which case the property will not be affected under bankruptcy proceedings as it is in negative equity - although you will need to find someone to acquire the beneficial interest from you for a nominal sum (usually £1 plus costs) to formally remove the property out of the bankruptcy proceedings.
wow. so then we would just continue to pay our mortgage and keep our house whilst removing our unsecured debts? would teh 20000 unsecured debt attached to our mortgage also be taken into the bankruptcy? in reply to fergiedoggy it feels great to have all you people to help guide us through and thanks again for the support. we know this will be such a special and exciting but ultimately a tough and exhausting time too! we just want to be debt free and be able to bring up our baby wthout having to work every hour god sends just to pay the bills...aaah to dream eh! hax
I'm pretty sure the unsecured part of your mortgage will be taken into the bankruptcy, but not 100% sure!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
hopefully mel will pop on later and clarify that bit kal im not sure either.
bee the main thing is youre starting to make arrangements to get sorted.
dont let this drag you down to much as your health is important and to keep yourself well for your new arrival [:)]
if you ever need a stress release use us. im really pleased youre getting sorted hun xx [:o)]
Yes - the unsecured element of your mortgage product would be captured under the bankruptcy proceedings, leaving you to concentrate on paying the secured payments only. Do make sure that you calculate any equity in your property on the basis of just the secured loan though at the same time.
how little disposable income do you have to have before you can be considered for bankruptcy? also what are the real life consequences of going bankrupt. what happens to your wages etc and how difficult is day to day life made? could we still get a phone line, pay council tax by direct debit etc?
If you cannot maintain your credit commitments, then you can declare yourself bankrupt. Your disposable income will be used to work out whether or not you will pay an income payment order for three years.
Your wages will be paid as normal, but I beleive that for the first year you will have a 0 tax code.
I think you can still get things such as a phone line etc.
Skippy will be able to advise you on this, as she is a discharged bankrupt.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
