Would bankruptcy up North be a good option?

kildarefella83

Hi all,

Am a newbie to all of this so am hoping I am not messing this thread up or am posting it in the wrong place :P

I have a bit of a problem with my finances at the moment and am seriously thinking about moving up north apply for bankruptcy in the UK courts...or should I apply for the Irish one instead...???

I guess I am looking for some opinions and if possible, hear back from people who have gone through either or...

Here is my situation in short...
I got a mortgage with the Ulster Bank. House burned down 2 years ago...! 15-20K worth of damage! No funds available to pay for the damage. House being vandalized, broken into, everything has been stolen that is not nailed down and has now become a drug den for some of the scum around the area. Because of the constant break-ins I was not able to fix the house up slowly with a few bits here and there as whatever I would have done to it, would have been stolen, broken or set on fire again during the night... So the only option I have is to fix it all at once in one big go which I do not have the money for...! I have asked the bank and credit union for a loan which they can't give me as both are completely exhausted. The Ulster Bank won't lead me the money either even though I told them [and made sure they understand...] that I want them to ad that amount to my Mortgage and pay €20-30 extra once the house is livable again... Thought it would be a fair deal for all involved! I am spending a fortune every month on blocking up the house and trying to keep it safe enough to stop kids hurting themselves. Also have to pay rent on top of my mortgage as I can't live in the house...

I have (up to last month) always paid my mortgage but have reached a point in my live where I can't just sit at home anymore and live like a mouse! I would like to have a life again, date again, even just enjoy a pint again!!!

I told the bank that I am only going to do 2 things from now on...
A: Keep paying my mortgage if the bank lends me the money needed to fix the house...or
B: Go bankrupt and let them deal with the courts...

As you all can surely understand, I am afraid that this might backfire on me bigtime and that I am going to be left with an even bigger burned and less money to live off if going bankrupt...

Any advice would be much appreciated!

Thanks and god bless.
Brian

Bepolite

I'm not going to attempt to give you advice on bankruptcy, speak to a solicitor if you think thats the way to go.

In relation to your dealings with the bank however, of course they are not going to throw good many after bad, but if you make arrangements with them to pay a reduced amount each month, got to the point you could fix part of the house so that you could move back in, presumably this would resolve the situation?

How you managed to have a mortgage without the property being insured is beyond me but I take you at your word.

ABajaninCork

This doesn't sound right to me either. If there's a mortgage, then it is a condition you carry buildings insurance. Why were you not able to claim from insurance?

AFAIK Irish bankruptcy isn't discharged for 12 years. UK is after one. And you have to prove the UK is your primary centre of interest; i.e. you have to live there.

godtabh

ABajaninCork wrote: »

This doesn't sound right to me either. If there's a mortgage, then it is a condition you carry buildings insurance. Why were you not able to claim from insurance?

Generally the condition relates to life assurance.

Sounds like there was no house insurance

ABajaninCork

Is it not a condition of taking a mortgage here then? Makes no sense! I can understand the life insurance, but not to carry buildings insurance is a real risk, if you'll forgive the pun.

I ask, because some friends of mine recently bought a property. And I'm nearly certain they were told to take out buildings insurance as well as life cover.

godtabh

might have been told out of common sense

BornToKill

A bank will normally require buildings insurance and will want their interest noted on the policy as a term of the mortgage contract.

The term for bankruptcy is reduced from 12 years to 3 years as part of the reform of bankruptcy introduced by the Personal Insolvency Act 2012. The term in the UK is one year but a debtor must establish a centre of main interest before applying, so 18 months is more realistic as a timeframe.

Fred Swanson

This post has been deleted.

godtabh

Just thinking. Maybe its different for terrace houses/apartments in managed estates as only content insurance is required by the individual as block insurance are provided by a management company