Debt Questions

I have been bankrupt 2 years.....

I think its time I got repossessed it's just too hard.

will I have to pay back the 20,000 negative equity and how is this done ?

How much a week, month....

My wife may go bankrupt. She has her name on the house. Would that solve this problem ?

ie WE wouldn't be liable for any shortfall.

Genuine question

You will be liable for the shortfall and you will have to pay it back. You are jointly and severally liable so that if your wife goes bankrupt the shortfall will form part of her bankruptcy but you will be liable for the full amount of the shortfall. However, you can pay them back at a rate you can afford and if you have no job £1 per month will have to suffice. There is no way that the shortfall will disappear short of you going bankrupt again!

Please can some other posters come in and share their experiences?

Incidentally "you have been bankrupt 2 years"? Have you not been discharged as you should have been at the latest December 2008? I have been answering your questions assuming your discharge has not been delayed - you are a discharged bankrupt, you are no longer a bankrupt!! Or have I got this wrong?

No, I am discharged, December 2008.

What if the house is in her name ?

does that make a difference ?

cheers

Can this be broken down a bit more ?

I'm a bit thick !

"the shortfall will form part of her bankruptcy but you will be liable for the full amount of the shortfall."

thats the bit I don't get !

cheers

J

If the mortgage is in joint names then you are both jointly and severally liable for the full amount. Not 50% each. If your wife went bankrupt then she would have no further liability and you would be liable for the full 100%.

If someone for example has a joint debt with their partner and they do an IVA and pay back 30% of the debt then the partner is chased for the remaining 70%. So if the debt was £10,000 and in the IVA the creditor got £3,000 the non IVA partner would be liable for the other £7,000.

I have a friend in a similar situation - she is the sole home owner as her husband left and put her name only on the deeds.

She is going going bankrupt, and will have a shortfall, negative equity of £10,000.

will she be liable for this.

I understand she will, and they can chase her for 12 years.

please confirm.

thanks

No Jimmy, she will not be.

She is going to go bankrupt and thus the shortfall willl form part of the bankruptcy. End of story.

Your case was that the property was kept and your bankruptcy has been discharged.

If there was no bankruptcy in the case then the statute of limitations on a shortfall on a property is in two sections - they can chase the interest part for six years but up to 12 years for the money secured on the property. Basically the money from any sale is paid to the interest first so that what is left is usually what was secured on the land/property.

However the Council of Mortgage Lenders have an unofficial agreement of all their lenders that they will not press for payment after six years.

Fortunately this will not apply to your friend as her shortfall will go into the bankruptcy as of course she will explain this to the OR when she goes bankrupt.

Thank you Sarah - I told her - she was so happy !