Just a quick explanation as to my situation. I'm currently seperated have have been bankrupt since February. Wife left the home and is living with someone else.
I have been paying the mortgage (interest only) since she left 14 months ago.
What would the implications be for me if I moved out to a flat and stopped paying mortgage?
Hi Steve. The property would be repossessed and any shortfall should form part of your bankruptcy. However, it would need to be done quickly to make sure that you were not discharged and the debt would then be a new debt post bankruptcy. Speak to the OR and advise what you are intending to do and if he/she is happy return the keys to the bank.
Is there any equity in the property Steve? If so, the property could be sold and your share of the equity would be given to your Trustee to pay creditors. If the house was in negative equity, the resultant shortfall would be a creditor to be lost in the bankruptcy regardless of whether you sell pre- or post-discharge.
