Voluntarily Leaving Job for NI Bankruptcy

K

karlo

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How would voluntarily leaving your job, handing back the keys & moving to NI be viewed by the NI courts? I am single, on avg industrial wage & have a mortgage of €250k on an apt now worth €75k. I also have an investment property abroad, mortgage €140k, value about €110k. Bank want me to put inv. property on market and take out a loan of c.€30k to cover the shortfall. They have suggested parking a chunk of the Irish mortgage (around €70k) for 10-15 years, at which point i have to pay it back in full (not possible) or sell up at that point to cover the debt. In reality, this means being made homeless in my 60's and the possibility of any further shortfall being taken from my pension. I cannot deal with the stress of losing my home & job with no safety net, but having to face this in my 60's would be 100 times worse. Should I go along with their plan for the time being in the hope some better deal or partial write-down is on the cards or should I start planning an escape route now?
 
You have a job which thousands of people would give their right eye for. I wouldn't give it up too quick.

Selling one of your properties could be an excellent idea.
 
Thanks. I appreciate there are people in far worse positions, but after mortgage and insurance costs, I'm living on less than I'd get on social security and that's not going to change anytime soon. I'm in my late 40's and if I need to try to turn things around I need to act fast. I'm not trying to get out of responsibilities but my situation is just not sustainable longer term. The banks plan seems to be to keep me paying as much as I can for as long as I can before I go bust, which is inevitable. I can't contemplate allowing this happen in my 60's.
 
If you sold the overseas property it would remove that mortgage.
And the 30,000 shortfall would be unsecured which you could negotiate about in the future.
 
2nd property is rented out and covers the interest-only mortgage, agency fees, repairs etc. There's no real profit involved so getting rid of it will just remove a headache but not improve my finances at all. It will just entail another debt from the shortfall. Both mortgages are with the same institution so I imagine they'll tag the 30k onto my primary residence so that its secured. Don't know if I'll have any say in the matter.
 
Hi Karlo

Could you put up your details in the Case study format-(see mortgage arrears thread).

While no expert, I would say the new personal debt legislation will be of benefit to you and you will not have to give up your job to avail of these. The advice to sell the the foreign property (by the bank) is good in that they are supportive of it, but you should be pushing for them to write off the shortfall.
Under a Debt Settlement Agreement they may have to do this anyway. Please remember to post up all relevant information via a case study-once you do, good financial advice and comprehensive options via this forum is not that far away from you.
Best of luck.
 
Thanks Luternau, I appreciate your help. I'll fill it in when I get a spare few mins. Are these case studies made public? Just a bit concerned because I work for a financial institute and don't want to make further problems for myself by naming names. Thanks.
 
This is a public forum so anybody can read what you post. However, would they know that was you?
If you read some of the other case studies you will see whats required.
 
The debt settlement arrangement may be more suitable for you - as you dont have to declare bankruptcy, or give up your job, and the debt is discharged in 5 years
 
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