# Uk bankruptcy and family home



## drrkpd (21 Jan 2012)

Firstly excellent forum and great to see such expert advice given in language we can all understand.
I am still a little confused about the family house and mortgage in joint names. Negative equity of 370k plus 80k unsecured. If I domicile and go bankrupt in uk what happens to family home and when does it happen??? have 17 ye old son still at home.
If in joint names even in negative equity will we both have to go bankrupt at same time?? thanks
PS no other properties tg
also to try and keep home is an IVA open to Irish Citizens or does it only apply in UK??


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## Bronte (23 Jan 2012)

What is IVA?

That's a heck of a lot of negative equity.  If both of you own the house then both of you should go to the UK, what do you plan on doing with the 17 year old?  Can you afford the mortgage and the debt of 80K?


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## Steve Thatcher (23 Jan 2012)

drrkpd said:


> Firstly excellent forum and great to see such expert advice given in language we can all understand.
> I am still a little confused about the family house and mortgage in joint names. Negative equity of 370k plus 80k unsecured. If I domicile and go bankrupt in uk what happens to family home and when does it happen??? have 17 ye old son still at home.
> If in joint names even in negative equity will we both have to go bankrupt at same time?? thanks
> PS no other properties tg
> also to try and keep home is an IVA open to Irish Citizens or does it only apply in UK??


 
Hello, If you cannot afford to keep up repayments on the property and you want to be rid of the property, both signatories to the mortgage would need to go bankrupt, as it is a joint and several liability. The 17yr old would probably be able to stay in the home in ireland until evicted by the lender.
The Official Receiver in bankruptcy wouldn't get involved in the property woul be my guess, so it depends on how quickly the lender moves to crystalise its loss.
You would also write off your unsecured loan in the bankruptcy.

The IVa is an individual voluntary arrangement. It is available only in the UK. It only covers unsecured debt. You have to pay into an arrangement for 60 months a set sum, which is calculated on what the creditors think you can afford.

It will ot be the solution for you here because of the house situation.

Steve


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## drrkpd (24 Jan 2012)

Both posters many thanks- very helpful advice. Am obviously watching with interest what the Irish government will do but sounds like some of their measures for unsecured debt are similar to UK even though they have different names.


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## drrkpd (24 Jan 2012)

Bronte said:


> What is IVA?
> 
> That's a heck of a lot of negative equity.  If both of you own the house then both of you should go to the UK, what do you plan on doing with the 17 year old?  Can you afford the mortgage and the debt of 80K?



Yes added a lot of debt -built an extension and cleared all unsecured debts -at the time (2006 )seemed a good idea but not now. Have been interest free for 5 years but finishing at end of year so trying to plan ahead.
No can't pay even interest free and unsecured loans and have exhausted savings and money from family. 
Not sure of value of house to be honest but cannot see who has access to even 600K these days but no direct house to compare it with.Trying to plan ahead  to be honest and look at all options but cannot leave until next summer.Trying to make sense of new government plans for debt here as well.


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