| Author |
 Topic  |
|
|
Jan
Starting Member
United Kingdom
7 Posts |
 Posted - 30 May 2010 : 17:35:26
|
Hi there,
We're seriously considering bankruptcy as my partner has been out of work for over a year now and the debts are getting to us even though we have arrangements on them.
Anyway our question is:-
We have a mortgage and a 2nd mortgage which means now we no longer have equity in the house - and we have over £80k in other debts. If the house is not sold because of the zero equity - when our BR is discharged & we were still able to stay in the house - what would we still owe - would that be the mortgage and the 2nd mortgage of would the house still be taken to pay the mortgage company? Just need to clarify as a little confused with this bit.
Hope someone can answer this.
Kind regards. xxx
J.Hara. |
|
|
debtinfo
forum expert
2826 Posts |
Posted - 30 May 2010 : 17:51:37
|
| You would normally be able to keep the property but would have to keep up the monthly payments to both mortgages |
 |
|
|
Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 30 May 2010 : 18:27:48
|
Hello Jan and welcome to the Forum.
Debtinfo is right on the mortgage payments for both the first and second charge.
As you are in negative equity, you should have no problem with keeping the property. However, take advice before you look at BR - CAB or one of the experts on this Forum. The Court (District Judge) will want to see that you have thought through the option and sought advice and the CAB CCCS or similar is all you really need.
Make sure that to keep the house it is affordable. Be clear that after you are discharged and the market will eventually pick up and interest payments will rise, that you are looking at a realistic decision.
Keep posting on this site and there are people who will assist. I am always here to assist on legal and housing related issues - I have been through BR and am now discharged and we kept two houses.
Be honest with the OR and yourselves and do not move too fast... Richard
"There are no problems - only solutions" |
|
|
|
Jan
Starting Member
United Kingdom
7 Posts |
Posted - 30 May 2010 : 20:51:20
|
Hi there,
At the moment the DSS are paying the mortgage so we don't have to worry about that at the moment - although we've been told they'll only pay it for 2 years - we've already had a year. We've already seeked advice from CCCS last year and their option was to go bankrupt...we've kept plodding along for the last year in the hope things would change but the only things that have are our relationship with each other - you know the setting, arguing over little things that lasts for dauys etc, it's putting us under a lot of strain...we're caught between carrying on paying all our creditors £1 a month which has already affected our credit rating (now shot to pieces) and loosing what we thought was everything.
What happens to things like the kids bikes and toys - are they taken into consideration as assets? As they don't really belong to 'us' they belong to the kids? Worried that the baliffs will come in and just take their toys like their Wii, DS's etc. and their DVDs etc. Silly things to worry about I know but we have to think of everything. Like you say it's a big decision and it's the unkown that's worrying us. Thanks for the info so far though, really helpful.
J.Hara. |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 30 May 2010 : 20:57:30
|
| You dont get baliffs with bankruptcy. They wont take any normal reasonable household items |
|
|
|
Jan
Starting Member
United Kingdom
7 Posts |
Posted - 31 May 2010 : 12:32:56
|
If you don't get baliffs how do they take the other items which can be sold for some cash? Or do we do that? Sorry for asking so many questions but need things to lay right in our heads before we decide if this is the best route. Also when do you need to open another bank account for all benefits to be paid into do you do this before or after you've been to court to declare yourself BR? Do you also find somewhere else to live (rent) before or after too??
Thanks.
Jan.x |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 31 May 2010 : 13:02:56
|
It is unusual for any household goods to be taken, if you have very expensive goods then you will be expected to offer them up to the OR, If you dont you are in contempt of court, but as i say this is only really if you have antiques or business assets.
You can open a bank account before the bankruptcy order, often recomended are co-op and barclays, tell them you are going bankrupt nad they will give you an account that does not get frozen.
Moving before is a little easier, as it will be easier to rent but it is not necessary if you need to do the bankruptcy first, it all depends on what order suits you |
|
|
|
Jan
Starting Member
United Kingdom
7 Posts |
Posted - 31 May 2010 : 13:37:31
|
Thanks for that.
So when we put on the form that we have a trampoline for the kids, they won't say ok we'll come and get that and try to sell it? Basically what you're saying is they don't come and take anything? Our cars are old and not work £2k trade, more like £1500 and £1200 - but they would take one of them wouldn't they? Saying that we would need to sell one of them to pay for deposit for rented house and the bankruptcy fees.
I always thought that if you declared yourself BR someone comes into your home, looks at everything you've got and takes what they can sell to try and get some money to pay creditors - so you're telling me this is not the case? I do worry about that bit.
Jan.x |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 31 May 2010 : 14:00:12
|
Yep thats correct, as long as the things are reasonable, I should point out that this is the rule for all household items (the trampoline should be safe). Other things such as business assets, vehicles, financial assets (eg premium bonds) have different rules but the rules state that all reasonable household assets are exempt from the bankruptcy.
Of course if you had 10 plasma TV's it would be hard to say they they were all needed and for example another recent poster has a business involving buying and selling antiques so the OR might look a bit more closely at that case obviously.
But as long as you have standard stuff then no one is going to come to your house.
As to the cars, they can also be exempted but are not automatically so, you would need to prove that they are necessary (rather than merely convenient) for your work or your basic domestic need.
any other questions feel free to ask |
Edited by - debtinfo on 31 May 2010 14:00:59 |
|
|
|
Jan
Starting Member
United Kingdom
7 Posts |
Posted - 31 May 2010 : 15:22:25
|
Thanks debtinfo, that's made me feel a lot better about things - is it really that straight forward?
When the Credit Reference details no longer show the debts ie after 6/7 years when these have 'dropped off' your credit rating - do you still need to tell people you were declared BR or is it a case of after this amount of time you no longer have to declare it to anyone. I only mention this as there's been a couple of people on here that have mentioned that BR haunts you for life but if it no longer shows on your credit file I would have thought that you no longer need to delare it...is this true?
Also, last one for today (I think). I've been wondering if both myself and my partner declare ourselves BR and some of the debts are in his name, some in my name and some are in joint - would we need to put them all on our seperate forms or just the joint ones and the ones for us respectively? ie HSBC loan in my name - only put it on my form - Halifax loan in his name - only put it on his form, joint bank loan - put it on both. Child tax credit and child benefit in my name - only on my form - JSA in his name but also claiming for me - does that need to go on both? I've printed off the forms ready - just incase (my partner and I have left each other to think about this for a couple of days then talk about it when kids are in bed to see the pro's and con's so I'm wanting as much info as possible going around in my head so that we can talk about best options).
Phew.....that's a load of my chest already and we've not even decided yet..:-)
Thanks.
Jan.x
Jan.x |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 31 May 2010 : 15:34:12
|
It is that straightforward, The OR is not there to punish you, they are appointed by the court to be the person in the middle between you and the creditors.
With bankruptcy if asked if you have ever been bankrupt then you will always need to declare it. That doesnt mean that you will automatically be turned down for things but for say a mortgage after 6 years they may ask for a larger deposit then someone else.
First liabilities
yours go on your forms, his go on his forms, joint debts go on both forms.
on both forms you will put down what your income is and any money that your partner receives, there are seperate boxes for this. (section 6) |
|
|
|
Jan
Starting Member
United Kingdom
7 Posts |
Posted - 31 May 2010 : 15:46:19
|
Thanks for this.
Got to go away and think about stuff now. I'm sure they'll be loads of questions but can't think of anymore at the moment.
Jan.x |
|
|
| |
Topic |
|
Thinking of BR
