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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I would like some advice in regard to a bank in Spain saying

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I would like some advice in regard to a bank in Spain saying they will make us bankrupt if we cannot pay outstanding mortgage.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. Could you please tell me what exactly you need to know?
Customer: replied 3 years ago.

ohave been told that if I can find £18,000 or make an offer very close to that , that it may be possible for them to accept that. But there is no way we will get that kind of money without security. As we have nothing of value, I guess bankruptcy would be the only route. I am just trying to ask you what would be the best thing to do. When we purchased the property in Spain we invested all our savings, we both found jobs there and debts in UK were also being paid monthly from our incomes. After 6 months I had cancer for the second time, which involved chemotherapy, radiotherapy and an operation which were all done in Spain. I was unable to wok during this time. Because of my health we decided we would have to come back to UK. We sold our furniture and belongings to get us back home. We rented the villa out for 6mths and paid the difference between that and the mortgage. After that we paid the mortgage in Spain and rented a caravan in th UK. When the GBP and the Euro became equal, although we were both working we were unable to cover our debts. We advertised the property but due to the publicity at that time could not even sell it for enough to cover outstanding mortgage.

We couldn't continue and handed the keys back to our bank before we were in arrears. I have had an IVA to cver my debts in UK and this has now completed. My husband works full time and I am retired. We have no assets, second hand cars, and manage to pay our way and keep our heads above the water. Is it possible that they will make us bankrupt even though we have nothing to offer? If they go that route will we lose our own personal aand household items?

It's difficult to know what's in the mind of the bank. Whilst the sum outstanding is relatively small I'm sure it doesn't wish to throw good money after bad issuing proceedings, obtaining judgment and then applying to make you both bankrupt. The process is not cheap. As they know where you live and you have been communicating with them you cannot know ignore them. The best thing to do is to draft a statement of both your assets and liabilities including your husbands income. Hopefully, this will show them there is no commercial reason to pursue you.
I do not recommend making yourselves bankrupt. This will cost you quite a lot of money in court fees. Let the bank do it for you if that's what it wants to do. There is no real difference whether you make yourself bankrupt or the bank does it for you apart from the cost. The bank may decide that there is simply no commercial reason to spend even more money when the potential returns are negligible.
You will not lose your personal possessions or home possessions unless they are of significant value such as if you own Rolex watches or expensive artwork.
I hope this helps.
Customer: replied 3 years ago.

Thankyou for that, it was very helpful. would our cars be considered as assets, one is valued about £950 and the other at £2,000.

Your cars would be considered assets but the value is really not great enough for the trustee to be concerned about. You would be able to keep those.
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