Topic: Helpwith bankruptcy/repossesion

[eden6]

Hi all,
 
I'm hoping someone might be able to help me know what I'm facing.  I have thought about going bankrupt for a while, as it is really my only option.  I probably should really have done so already, but keep ignoring everything.  Bad plan I know, but I have been trying to work out the best course of action and getting nowhere. 
 
My husband and I split last year, and the kids and I left with just what we could carry. Since then he's decided to stop paying the mortgage (joint names) as he says he can't afford it, which is rubbish as it's a very small amount per month.  I am now privately renting (paid by housing benefit) while he remains in the property.  He has told me the mortgage is now several months in arrears, and repossession proceedings will be commenced immediately.  On top of this, some of my debts are in the process of going to court for ccj's to be passed.  My dilemma really is not whether to go bankrupt, but when?!  Do I do it now, before the ccj's get passed (would it even stop the ccj's being passed?) or do I accept I have to pay the ccj's, possibly receive another couple, and wait for the repossession so that any debt occuring can be included in bankruptcy?   Or.. if I went bankrupt now, would the house get dealt with by the bankruptcy rather than the repossession?  There is a max of about £15k equity, obviously half his (less after fees/quick sale etc)  I hope someone can help, as the worry is driving me nuts!
 
Thanks in advance for any help!

[Steven Jackson]

Hello Eden6
 
Sorry to hear about your situation. There is no need to delay your bankruptcy. If you declare yourself bankrupt now, this would stop any further creditor action such as the CCJ applications. You would no longer be responsible for paying any of those debts.
 
In terms of the house, your bankruptcy will not change the repossession process. It is likely that the mortgage company will sell the house at auction and therefore it would go for a knock down price. If this was the case it is possible that the mortgage would not be paid in full and the mortgage company would then chase you and your husband for the shortfall.
 
However, the good news is that any shortfall is deemed as a debt you owed at the time you declared bankruptcy. As such, if you declare bankruptcy now, any moretgage shortfall which appears at a later date (even years down the line) is included in your current bankruptcy and as such you will not be responsible for repaying it.

[eden6]

Thank you so much for replying, that really helps.  It seems such a daunting task to start sorting this mess.  Thank you once again 

[Steven Jackson]

No problem at all Eden6
 
You are right, it can be really daunting and worrying when you are starting out on the path of getting your debts resolved. However, once you have declared yourself bankrupt you will find that a huge weight has been lifted from your shoulders.
 
Please let us know if you need any further advice or help. We can definitely help you through things

[eden6]

Thank you Steven! I have just posted something else you may be able to help with, but as it was a totally different question I started a new topic!  I am just trying to get everything straight in my head before going for it.  I am really looking forward to everything being sorted so that the worry is gone, and then working towards a better future for me and the kids (and not trying to look for a £400k a year job to pay the debts!)

[Steven Jackson]

No problem Eden6. I will have a look at your new post