I bought a house 4 years ago for £111,000. I currently owe £104,000 to my mortgage company - Alliance and Leicester. The best valuation I can now get for it is £90,000, however all houses on my street for sale are selling at £65,000. I want to get rid of my property as it's costing me a fortune in repairs. I also have to commute somewhere else for work and soon need to relocate. If I rent my house out there is still a significant shortfall on what I will have to cover the mortgage each month. The stress of this is absolutely killing me as I know I'm not ever going to get the money back out of this house that I put in and it's going to be years before it comes back to the value I bought it for.
I want to hand the keys back to the mortgage company, however I will have the remaining debt to pay. I do not have the money for the debt so will have to become bankrupt. What I can't find out is what happens after I become bankrupt in terms of will I still have to pay money back. And also, if I am working (earn £35,000) can I claim bankruptcy as I have no other debts and have disposable income.
Or is there any other way out of this situation that does not involve me having to disappear overseas with no forwarding address or jumping off a bridge!!
This situation is HELL, I'm TRAPPED, and there seems to be no way out.