Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By eddo241
#400703 i have a property in negative equity of aprox-£15-20k
a 12K charge on the property which is a ccj,
8k credit card, all except property paid by a payment through step change? before any other bills.
the payment for the house is £370pm+£370 for the others,
i only earn £960 pm so the wife covers anything thats left her name is not on any debts? have considered not paying the mortgauge and renting but would this cause a problem with the or? we have 7 kids so on my side there is no spare money, except for tax credits+child benifit that the wife gets.
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By JaneClack
#401453 If the property is repossessed then any shortfall would go into your bankruptcy if that is what you wanted to do - as would the charging order and your other debts.

If you are looking to rent it is probably better to start looking now as most will want a deposit and it is more difficult to find a property after bankruptcy - not impossible but more difficult.

It may be time to start thinking more carefully about things like this now as benefit caps come in and so the benefit income may reduce meaning your wife cannot cover the other household bills. Basically it is your choice and how important the property is to you - if it is just bricks and mortar then bankruptcy may well give you and your family a fresh start.