Will I Lose My House If I Go Bankrupt?
Declaring bankruptcy could be the opportunity for the fresh financial start you desperately need, but you could be in danger of losing your house.
Your property is considered to be an asset, so there’s a danger that it could be repossessed and sold to pay your bankruptcy debts.
But this isn’t always the case. In this article, the team at Irwin Insolvency answers the question, ‘Will I lose my house if I go bankrupt?’
Can You Go Bankrupt and Keep Your House?
If you’ve declared bankruptcy, then your personal finances and all of your assets will be placed under the control of an official receiver. This means that your house, flat, family home, or any other property you own may have to be sold in order to pay off your debts.
Losing your home due to bankruptcy is the worst-case scenario, and it depends on a number of complex factors. If you have equity in a property, it’s very likely that the official receiver will sell your share of the equity. If you own your house outright, then this would result in the loss of your home.
However, if you share equity with another person (such as your partner), then only your share would be sold. In this scenario, you can go bankrupt and keep your house, but your partner would need to cover your costs. If you know that you need to declare bankruptcy, then before doing so, you may also be able to transfer ownership of the home to another person if you own it outright.
Can I Stay in a Property that I’m Renting?
If you are renting a property, you may also be wondering, ‘Will I lose my house if I go bankrupt in the UK’?
This is a more straightforward scenario, as it depends on whether or not you have kept up with your rental payments. If you are in arrears, a landlord is well within their rights to evict you as a tenant for failing to keep up with rent. If you declare bankruptcy, then any rent arrears will also be added to the debts that you owe.
However, if you have successfully kept up with your rental payments, the landlord may not be able to evict you even if you have declared bankruptcy. The same applies whether you are renting privately or if you are on a housing scheme through the local council. Keep up with your rent, and you won’t lose your rental property.
Contact Irwin Insolvency Today to Find Out More About Bankruptcy
Declaring bankruptcy may be the best solution for your personal finances, but there are serious implications to consider if you’re a homeowner.
Irwin Insolvency’s expert team of bankruptcy advisors can assess your situation and provide impartial advice that could save your property.
Contact Irwin Insolvency today for your free, no-obligation quote.
More on Bankruptcy from the team at Irwin Insolvency
Does Bankruptcy Cover Secured Debt?
Does Bankruptcy Clear Personal Guarantees?
Bankruptcy Credit Cards
What Is the Role of a Trustee in Bankruptcy?
What Are The Consequences of Bankruptcy?
Going Bankrupt with No Asset