Can you declare yourself bancrupt if you own property?? I don't think you can as you have an investment but a friend who wishes do delclare herself bancrupt thinks you can. She has debts of approx 8K (has mortgage arrears but has sorted it) and if getting county court judgements for loans & credit cards. She wants to declare herself bancrupt but doesn't want to lose her house as she has kids
2007-04-18 01:34:37 · 8 answers · asked by cavviecath 3 in Business & Finance ➔ Personal Finance
I work in insolvency (in the UK) and would never suggest anyone goes bankrupt, unless it is the last resort.
If she owns her house or the equity in the house then a Trustee of the Bankruptcy estate has an interest in it. That can lead to the property being repossessed and sold if the Bankrupt doesn't purchase their interest.
Really, £8k isn't a lot of debt and if possible, she could get a long term loan. Also depends on employment etc too, but I think it would be a bad mistake to go bankrupt (costs money to petition for your own bankruptcy too)
2007-04-18 01:41:48 · answer #1 · answered by Alex N 2 · 1⤊ 0⤋
do not go bankrupt for such a small amoount, the average person is 25,000 ini debt. Tell her to get some advice first from citizens advice bureau. She can offer to pay small amoounts to all the companies or move into a smaller house and clear off debts with the money made there, but my no means should she go bankrupt. I do not hink she has any idea what damage that can do to her future and her kids.
If her kids grow up and want a job in finance they quite often do a finance check and they will no be able to get finance because of the address being same as parents.
Write to everyone she owes and ask them for assistance first. Go online and look for problems resulting from bankruptcy.
good luck
2007-04-18 01:40:25 · answer #2 · answered by michelle a 4 · 1⤊ 0⤋
She will not lose her "primary residence", but the courts will take everything else. The bankruptcy will also follow her for the rest of her life, in spite of what the law is. Think about it, if she owed YOU a thousand pounds, and the court absolved her of any legal obligation to pay it all, would you suddenly stop wanting your money back after 7 years? (or however long it is?)
She owes the money. She should work with her creditors and figure out a plan to pay it back, even if it takes her ten years. Otherwise her kids will NEVER learn any personal responsibility, will they?
2007-04-18 01:45:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can keep your house if it's worth under a certain amount. Under Chapter 7 bankruptcy, you can redeem your house by agreeing to continue to pay your mortgage. You are also allowed to keep a car if it is under a certain value. You will be asked to declare the value of certain categories, like furnishings, clothing, investments, collections, cash on hand, bank accounts, etc. You will then be asked to list all debts and all monthly expenses, from the cost of clothing and utilities to the cost of feeding your dog. Based on those, the court will make a determination as to whether you qualify for Chapter 7 bankruptcy. If you do, you will be allowed to keep your clothing, food, household goods, eligible car and house, and any other assets under a certain limit (We had so few assets that we were allowed to keep everything).
2007-04-18 01:53:39 · answer #4 · answered by cross-stitch kelly 7 · 0⤊ 0⤋
particular while you're incredibly sensible approximately it besides the incontrovertible fact that its incredibly no longer likely which you will injury out with it, in case you attempt and fail then you definately are in deep domestic dog doo. mostly as what you attempt to do is defraud your lenders. if certainly one of your lenders already is acquainted with you have sources then they'll surely ask the place has it long previous, or the place have the proceeds long previous. they are in a position to even have already got a declare on that sources. The Bankcrupcy officer might detect your fraud and demand on thoise sources being reinstated interior the bankrupcy - meaning forcing your realtives to return the asset or money to the actual value of the asset lower back the courtroom. And is probably to make your words of clearing bankrupcy a gret deal harsher
2016-12-26 13:04:30 · answer #5 · answered by ? 3 · 0⤊ 0⤋
The house is an asset that would have the money released from it, for sure.
I doubt you can declare yourself bankrupt and still keep a mortgage. In fact, I would be annoyed if you could.
Also, 8000 is a tiny, tiny amount to declare yourself bankrupt over. If she can afford a mortgage, she can afford repayments on 8000.
2007-04-18 01:38:57 · answer #6 · answered by Anonymous · 1⤊ 2⤋
I think they,free up the equity in the house to pay off debts.
2007-04-18 01:37:59 · answer #7 · answered by heebygeeby 4 · 1⤊ 0⤋
Is this house the primary residence or is this just property???
2007-04-18 02:02:46 · answer #8 · answered by Anonymous · 0⤊ 0⤋