With bankruptcy, your unsecured debts are written off, but your assets may be sold off by the official receiver to pay creditors. If you own your own home and have equity in the property, it is likely that you will lose all the equity.

Keeping your home in bankruptcy

It is sometimes possible to safeguard your home by selling a share of the property (equivalent to the market value of your share of the property) to a friend or family member. By doing so, you release the equity and get to stay in your home.

If your property is in negative equity (if your mortgage is greater than the value of the property) you might get to keep your home.

Renting and bankruptcy

If you are in rented accommodation, your landlord could be informed that you have gone bankrupt. Some tenancy agreements will not allow you to remain in the property if you go bankrupt.

Bankruptcy consequences

As you can see, there are serious consequences regarding your home and bankruptcy, and you should get professional debt advice to find out exactly where you stand before taking any steps towards going bankrupt.

We provide free, impartial online debt counselling through CCCS Debt Remedy. We can give you help and advice concerning your debt and identify the most appropriate solution to your problem.