0800 077 6180
Calls from mobiles may be charged
If you are already bankrupt but you are struggling get advice and help here
By Martha Simms
#25927
Hello, I just watched the video called "What are the Pro's and Con's of Bankruptcy in the UK" on Youtube and it said that a homeowner who declares bankruptcy could have his/her home sold off. Would a homeowner who owes money on unsecured loans be at risk of having his/her home sold off if they were to declare bankruptcy? Thanks
User avatar
By Geraldine
#25938
Hello Martha and welcome to the forum.

As a homeowner the first thing to say is that your house is not automatically at risk if you go bankrupt. Infact the house is generally not at risk at all if it has little or no equity or is in negative equity. You only actually have to worry if you know there is good equity in the property. For more information about what happens to your house in bankruptcy have a look at this article: If I go bankrupt but have equity in my property can I keep my house?
#26058
Hi there Martha

If you declare yourself bankrupt as a homeowner it certainly does not mean that your house will be automatically sold. However if you have equity in the property this is treated as one of your assets and the official receiver will be interested in it.

If there is significant equity in your property then ultimately the official receiver could force you to sell to release this. However this would be after all other attempts to raise the equity have failed. If there is little or no equity in the property then there is actually little risk to the property.

Having said that if you are a home owner you should certainly not declare yourself bankrupt without first getting advice from an expert such as the ones who post on this forum.
User avatar
By Hayden
#26296
Hi there Martha

What is your current situation? Do you know how much equity there is in your property? If you can let us know I am sure we will be able to give you more advice.
#26627
Thank you all for your replies. I have not been able to get back on time until now so apologies. As far as I am aware there is about £20k of equity in my home. I owne this jointly with my husband.
By Carla
#26740
Hi there Martha

This could cause you a problem if you were to go bankrupt. Only half the equity in the house is yours but half is still £10k. The official receiver is entitled to your £10k so if your husband or another third party could not raise this then the property might be at risk.
#26882
Hello Martha. If you are not sure about the current value of your house and therefore the equity, then before you make any decisions it is wise to get a quick sale valuation from a local estate agent. An on-line valuation from a company like Zoopla is not good enough in this situation..... Once you have this let us know and we will be able to advise on what to expect of you go bankrupt.