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

Moderators: TalbotWoods, JaneClack

By Onthebrightside
#255103 Me and my hubby have been in debt for about 3 years now. I recently stopped working so our DMP payments have dropped down to £1 pcm. I am considering bankrupsy but would like some advice regarding property.
We live in a shared ownership house, 40% us, 60% housing asso.
We bought the house in Jan 2007 and we have been in negative equity ever since as the houseprice dropped with the credit crunch. I have two young children under 5 and we don't own a car.
If we were to go bankrupt, would we lose our house? We have never missed a morgage payment and we would certainly keep up all mortage payments in the future.
Any help or advice would be greatfully received :)
By Jane1962
#255143 Hi onthebrightside,

Mu husband and I recently went bankrupt and have a mortgage on our property along with a secured loan and are in negative equity and the OR said that we could keep the house and after 2 years and 3 months a valuation would be done to see if there was any equity in it then and if there was then a decision would be made, but as we are about 30K in negative equity I can't see house prices rising that much in the coming 3 yrs and so we are quite hopeful that we will not lose our property. We are not going to do anythign but emergency maintenance on it whilst we are waiting as we wouldn't want anything we did to the property to boost the property value.
I hope this helps you in making your decision.

Jane
By Onthebrightside
#255153 Hi Jane. Firstly please excuse the poor spelling in my previous post. Head is a complete shed at the moment.
I am going to find out how much my house is valued at and then we will make a decision I think although your post was uplifting so thank you :)
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By TalbotWoods
#255253 Hi again OTBS

Most shared ownership properties would need significant equity before the OR will touch them, as they can normally only be sold back to the HA ..... and they tend to offer well below market rates, so immediately drop even further into negative equity. (Tis one of the nice things HA do when ORs come sniffing after equity in bankruptcy cases)

So unless there is sufficient equity to buy the next 20% of the property the OR wont normally even go near it!!

Tim