# need to know how bankruptcy and repo affect options



## car1 (21 Jun 2012)

Own 1 house mortgaged in Northern Ireland
Mortgage Amount on my 75% share
Shared Ownership scheme own 25% share 
Shortfall of £43000 approx

Renting out to private tenant as lost job and left area mortgage company gets £400 pcm (interest only minimum is £485, £85pcm shortfall)
Shared Ownership schema gets there £70 pcm

Letter received from solictor to occuptant to state court date for possession hearing in few weeks
4 unsecured loans to value of £8000
paying them £1 pcm and have been for 1.5 years now
Have 3 kids + wife (doesnt work - FT student)
All debts in joint names
Im currently working in EU country abroad and just getting by

My questions are around bankruptcy and have been unable to find clear answers online. I will try and be as specific as possible as Im trying to decide what to do tonight:
1.Does secured mortgage get wiped along with other loans in bankrupty
OR
Does the house need repo'ed first - so as the shortfall can become unsecured and therefore get included with pool of debt for clearance through bankruptcy?
(If it needs repo'ed first can bankruptcy be started as soon as they take it OR do i have to wait until its sold so as i know how much shortfall is)
if made bankrupt in UK (if i was not on breadline I would have to pay chunks of income into the pot).
How would it affect me if i moved to another country then (especially during intital 12 months also) to earn an income that had a surplus i.e.
(a)Republic of Ireland (as a country in the EU)
(b)Norway
(c)Australia as a country definately not in reach of EU?
(d)Went back to Belfast - and had a small surplus each month
I have had so many nights of not sleeping with all this and would be great to know what my position is so as i can plan my family and I's life
Thanks so much


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## Steve Thatcher (25 Jun 2012)

Hello I think I can help with all of these.

I will answer each point in italics under your question.



car1 said:


> Own 1 house mortgaged in Northern Ireland
> Mortgage Amount on my 75% share
> Shared Ownership scheme own 25% share
> Shortfall of £43000 approx
> ...


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