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

Moderators: TalbotWoods, JaneClack

By smalls
#1408 Hi the name's Mike,
Unfortunately i have run up some serious gambling debts, which will basically mean I will have to adventurely declare my self bankrupt. I'm seeing the CAB and have spoken to FCL but I'm scared about my home I actually own my property with a mate from work. Mortgage is 157.500 plus there is a secured loan of 44000. property is worth 185000. Will I be able to keep my home ? or what is the best method to keep it. I'm disabled and it's really impearitive that if at all possible I can keep my home.
Appreciate any help.
Mike
ByDavidc
#1416
smalls wrote:Hi the name's Mike,
Unfortunately i have run up some serious gambling debts, which will basically mean I will have to adventurely declare my self bankrupt. I'm seeing the CAB and have spoken to FCL but I'm scared about my home I actually own my property with a mate from work. Mortgage is 157.500 plus there is a secured loan of 44000. property is worth 185000. Will I be able to keep my home ? or what is the best method to keep it. I'm disabled and it's really impearitive that if at all possible I can keep my home.
Appreciate any help.
Mike

you are going to have to seek profesional advice. Whatever sare you have in the home will pass to the OR on your bankrupcy and unless your mate from work or a friend/relative is prepared to buy your interest out at a fair market raate the house will be sold period . Your mate will have his share of any equity and the OR will distribute your to your creditors after taking the costs of the insolvancy.
David
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By JaneClack
#1502 From what you say there is no equity in your property because of the secured loan. So you or your mate could buy your beneficial interest from the Official Receiver for £1 plus conveyancing costs of about £200. Download the leaflet What will happen to my home? from http://www.insolvency.gov.uk . It is quite simple.
Good luck.