Hi, I'm 26 and having a hard time getting my head around all of this, bankruptcy is brand new to me so I have a couple of questions I'd really appreciate some answers to.
I bought a house with my partner 5 years ago when I was 21. We used a family friend as a broker and between one thing and another, unknowingly signed my soul away in the form of a waiver that stated I'd take on the mortgage if anything happened to my fiancé. Unknown to me, his life insurance policy lapsed after a year, and last April he passed away.
I suspect that what you took on was a joint and several mortgage, which meant that you were always responsible for the whole mortgage
I've spoken to solicitors etc and the bottom line is I'm liable for the whole debt. I have been unable to pay the mortgage for the past year as I've also taken on all the bills that were covered by us both before. I spoke to the bank last week and they said based on my earnings and outgoings, the mortgage is unsustainable.
At least everybody agrees with this.
I've decided to hand the keys back, let the bank sell the house, and then declare myself bankrupt from the UK. I've got friends and family in Wales and that's where I'm going to go.
Good, make sure that if that is what you are going to do you get a record of when you arrived, such as getting a Barclay's Bank account opened. Get a National Insurance number so you can get a job.
I do a 23 point plan on all of this
I'd really appreciate if anyone could give me a rundown/timeline of how this all happens and what I can expect. What will I need to do for the bank? How long will I need to hang around here, from when I actually give them the keys? Any other info, I'd really appreciate it.
In short, if they will accept a surrender, you do not need to hang around at all. You can simply move to Wales, wait until your COMI is established and then simply apply for bankruptcy.
See your next set of questions for those answers
Thanks
Forgot to add some questions. When i hand the house back, whats the process as far as the bank selling the house.
The bank will put it in auction, sell it and then write to you asking you to pau the shortfall.
Prior to this they will write to you getting you to sign a form saying you will be responsible for the shortfall. You would be anyway under the terms of the mortgage, so no problem in signing that.
Obviously ill be liable for the selling cost legal fee etc. Should i wait until the house is sold and the bank tell me these additional costs before declaring myself bankrupt?
No need to do that at all. you can go bankrupt once you have established your COMI even if the property has not been sold.
Or will the bank make me pay the fees as they come up? I dont have a penny so cant sell the house myself
You will not have to pay any fees up front
Steve I greatly appreciate your answers and help/advice. I am starting to feel positive about the whole thing. One more question which isn't of huge importance. My car is worth about €3k, would that be seen as an asset?
Also, I am going to start selling some items from my house, certain pieces of furniture etc to try to get some money together for my move. Is that ok? I really don't want to do anything that is out of line at all. Thanks again
Thanks Steve, so in that case would you recommend I sell my car before I move? Due to its value now of €3k is (2004 VW Polo)
Steve one last question I promise! When is my COMI established? You said once my COMI had been established I can leave
Thanks
Steve, if you wouldn't mind I have a question. If a person is in bankruptcy in the UK and has a High Court case here in Ireland can/will the bankruptcy discharge be delayed until the High Court situation has been sorted here first or are they completely separate??
Thnx
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