need to know how bankruptcy and repo affect options

[car1]

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

 

[Steve Thatcher]

Hello I think I can help with all of these.

I will answer each point in italics under your question.

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

In a bankruptcy and specifically in your case the Official Receiver would look to see if there was any equity. There is not. He has no chance of selling this at a profit and so will inform the mortgagor that its rights are unaffected. It can then simply take the property back and sell it. The shortfall will be written off in the bankruptcy. I simple trems the property does not need to be repossessed and sold prior to the bankruptcy.
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?

No

(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).

I see you are working overseas. You would need to locate to the UK to go bankrupt there. At that point your income would be assessed for an income payments order.

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

Assuming you establish your centre of main interest in the UK and went bankrupt, it is open to you to move anywhere within those 12 months of your subsequent bankruptcy. You have a duty to continue to co-operate with the OR. That includes telling him about changes to your wages. if during that time you earn surplus to your needs he can ask you to enter an IPA. It last 36 months from the date put in place. if you did not co-operate he could apply to suspend your automatic discharge.
It makes no difference where you work.
If you had no surplus, then an IPA is not put in place.
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