Areas of Law / Debt matter

If you go bankrupt with a house which is still mortgaged and with other debts that cannot be met by your income, will the house have to be sold?

Quite possibly, but there are often alternatives to bankruptcy which you should investigate urgently if you’re in financial trouble. The Citizen’s Advice Bureau offers a debt counselling service, and there are a number of similar online agencies. Creditors can often be persuaded to accept smaller repayments, or you could spread your mortgage over a longer period, for instance. Unless you declare yourself bankrupt it won’t happen unless one of your creditors takes action against you. However if the worst came to the worst your property could eventually be seized by the trustee in bankruptcy on a successful application for possession.

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