multiple mortgages, lied about my salary - UK bankruptcy?

B

BadWay

Guest
Hi,

|Total|Apartment |House
Mortgage|805|340|465
I am hoping someone may help me on this forum with my situation.
My situation is similar to the thread started on this page.
I have debts up to my eyes both through my own incompetence through a few bad decisions and the way the world has changed over the last few years.
I live in an apartment which I inherited from my late brother. The mortgage on the apartment was around 30k before I made a bad decision and went and bought a house in Dublin city. As I had no savings and listened to family saying 'you have to get on the property ladder', so i got a mortgage.
I lied in saying i had a job, I didn't. They never checked me out and I was given a mortgage for a house worth over 500k. But they took my inherited apartment as collatoral.
I now have a 340k mortgage on my apartment with 28k mortgage arrears.
My house in town which was 540k has a 465k mortgage and 46k arrears.
I have no job and am on social welfare. I also have credit card debts and bank loans of approx 65k.
The mortgage company have sent me a latter to say they want the full mortgage and arrears payments or else they will start legal proceedings.
I am considering going to the UK to go bankrupt but I have an emotional attachment to my apartment and don't want to lose it. Is it possible to go bankrupt in the UK but keep my apartment? What should I do?
Any advice would be greatly appreciated..
Many thanks in advance.
 

Hello Badway,

It does seem that in your circumstances a move to the UK may help you clear your debts.
You need to be totally realistic about your apartment. I get asked this question every week.
When you move to the UK you are doing so to become bankrupt. A requirement is that you are habitually resident in the UK. It is then inconsistent to seek to keep an Irish property.
You need also to understand that the Official Receiver will not allow you to use income to pay the mortgage.
If you can't pay the mortgage you can't keep it anyway as it will be repossessed at some point.
You are better writing off the arrears and negative equity in the bankruptcy and starting again from scratch .
I would not advise anyone to try to take on this property for you unless it can be done as part of a deal to buy the property now at its true market value. To do that they will need a hefty deposit and be able to secure a mortgage in their own name. Is any of that even remotely feasible.
Sorry to be the harbinger of doom, but it is better to be realistic.

Steve Thatcher
Www.helpwithdebtuk.com
 
BadWay

You said you had a job when you didn't. So you are the primary source of your own misfortune. You can't blame the banks or "the way the world has changed"

Having said that, I don't know why people are assuming bankruptcy is the only option.

How much are the two properties worth?
What interest rate are you paying on the mortgages?
Where are you living?
Could you not rent both of them and maybe the rent would pay at least the interest on the mortgage.

Bankruptcy may well be your best option, but it's better to look at the other options first.
 
There's something odd about your post - if you inherited the apartment why is there a huge mortgage on it and the house you bought?

Is either property rented out? Have you not had a job both before or since your inheritance of the apartment?

I would think there's no chance at all of keeping the apartment if you go bankrupt - why do you think you should be allowed to?

And by the way, this is all of your own doing, it's no-one else's fault just yours.
 
I'm not clear either. You must have remortgaged the apartment as well as taking out the mortgage for the Dublin house. Where did that money go?

There must have been salary slips accompanying your forms.

Have you asked for a copy of your file to ascertain these were not forged?

You were already on the property ladder.
 
This is a strange one.
We can assume from the detail provided that you remortgaged the apartment that was left to you. It had an outstanding debt of 30K which you now say has a debt of 340K. So you borrowed up on 300K on it. Probablu used some of this for the purchase of the house which now has a 465K mortgage.
Strange you got the mortgages with no job...unethical lending and all that but at the end of the day you applied for this crazy amount of debt and it was given to you..

As per previous poster, can you service an interest only payment on the consolidated debt? Have you any potential to get a job? Bankruptcy will see you lose both properties. While Im not aware of the detailed circumstances, surely you agree on mature reflection that you should not / can not retain an ownership on any of the properties.

You borrowed nearly a million....you cant pay it so either plan on how to pay it or else liquidate and bankrupt..only way I can see it, but again maybe there are other properties / family interests in play
 
This does not make sense, if you inherited an apartment, why do you say family members pressured you by saying that you need to get on the property ladder - you were already on it with an apartment.

As reckless as lenders were, I find it hard to believe, you never had to show evidence of your income.
 
did your brother put up 300k price on 30k apartment and you both use 270k diff for shopping and deposit for 465k house?
 
would any bank give a mortgage to someone with no job?, is the o.p actually quoting a real case here
 
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