One of the main disadvantages during bankruptcy is that your Official Receiver or Trustee may decide to sell your home so that the funds can go towards paying your bankruptcy debt.
The amount that you will have to pay to your creditors is known as beneficial interest. This is the amount that is received after the mortgage has been repaid and your partner is paid their half of the sale proceeds, if you have a joint mortgage.
It does not matter your home is or leasehold and whether it is solely or jointly owned, it can still be put up for sale. You may be able to postpone the sale for the first year of your bankruptcy so that you can make alternative housing arrangements, if you have a partner or children. The only way that you can stop your home being sold is if you can find someone to buy your part of the beneficial interest in the home.
If you live in rented accommodation then your landlord will be informed about your bankruptcy status. Details about what will happen to your tenancy in the event of being declared bankrupt are likely to be noted in your tenancy agreement.
For further information about what can happen to your house during bankruptcy, call the One Advice Bankruptcy team on 0800 048 1752.