Bankruptcy and my home

Bankruptcy will affect your home in different ways, depending on whether you rent or own your home.

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If you rent your home, you may be able to continue living there after your bankruptcy, unless you have rent arrears. Do check your tenancy agreement, as some have clauses requiring you to leave the property if you declare yourself bankrupt.

If you own your home, and there is equity in it, the official receiver may decide to sell your property. The official receiver will always give you time to find somewhere else to live.

If there is no equity in your house, you may be allowed to stay there. If you have a mortgage shortfall (negative equity) and decide to sell your home before you go bankrupt, the shortfall will be included in the bankruptcy.

This area can be complex, so do contact us for further advice.

© Consumer Credit Counselling Service 2011