www.iva.co.uk

I am about to hand my house back to the mortgage company as I have remortgaged to the hilt and now the extorionate monthly repayments have got the better of me. I have other debts approximately £8000 that I can't pay baack because I lost my job. I feel the only way out is to declare bankruptcy as the mortgage company will come back to me for any shortfall after auctioning my house. Am I doing the right thing?

Hi there and welcome to the forum

If you are giving away your only asset, and own nothing else of material value which would be affected, then bankruptcy will be the quickest, easiest and cheapest way forward for you to deal with your debts.

How much do you think the shortfall will eventually be?

Hi Lizzie. With no income and no assets it certainly sounds like bankruptcy is the only realistic option. It is possible you could attempt an IVA if your employment situation changed but this would depend a lot on the size of the shortfall and your new I&E. I would not suggest ignoring the situation as even though you may not hear anything from the mortgage company straightaway, they have 12 years to pursue you for the shortfall.

Hi Lizzie, and welcome from me too.

You can find out information on bankruptcy from this site:

http://www.insolvency.gov.uk/

The forms are available to fill in online as well.