My sister divorced a few years ago. She was left with an apartment in Turkey which is fully paid for (although still waiting for the title deeds) and considerable debt consisting of loans and various credit cards. This was manageable at the the time. Even to the point that she obtained a mortgage with her new boyfriend to buy a property here in the UK. The UK property is a shared ownership scheme. With the downturn of the economy in recent years, they do not believe the UK property holds any equity. The Turkish property may be worth enough to cover her debts.
She has since ended up in a position where she cannot afford the repayments on the loan and cards and they have all been passed to debt collecters. She buried her head in the sand and has only filled me in on the state of things when after ignoring the calls on her phone, a debt collecter has started calling her workplace.
She now realises she can't hide from this any longer but I'm worried about how she plans to tackle this.
She is under the impression that she will not lose her UK property in bankruptcy as there is no equity, it is a shared mortgage with the building company 70%-30% (i think) and also her boyfriend is on the mortgage and he doesn't intend on getting involved.
As far as the Turkish asset is concerned, she is under the impression that as there is no UK loan for the property and it is outside the EU, she can simply not mention it in the procceedings.
Any thoughts on this scenario are welcomed.