Hi we desperately need your help. Me and my partner both have a lot of debt in our own names. Mine around 16k and due to sickness I am unable to work to repay. My partners debt is around 35k which was from his marriage, it has been argued out between him and his ex-wife and the agreement has been made that she will pay him 5k - this is to buy him out of a house they both shared. There is no debt attached to the house and it is solely in his name. We where advised last year to declare ourselves bankrupt but have never had the funds until now. We are a little worried about it and would be grateful if you could answer the following questions for us. I have a santander standard account in my name - would this be automatically closed? or can we argue that we need it to continue paying bills? The 5k - we will be using £700 each for the bankruptcy, will the rest be taken or will they leave enough to live on? Monthly outgoings - what is allowed on this list? I understand basic utilities and food but we owe a lot of money to friends and family and have an agreement with one friend of £110 a month. Would this be accepted? The car - Our car was a write off and we fixed it and put it back on the road, it is still worth around 2k but we have had arguments with other companies as they say it is worth higher (the price if not written off) which would they listen to? We would be grateful for any help and advice. This has been going on way to long and I need sleep :( We look forward to your reply, many thanks Til and Tom
To sell your husbands share of the house for £5k would not be allowed as it would be undervalue and the transaction would probably be reversed by the OR as he/she will keep an interest in the house for 2 years and three months.
Secondly, do you have any debt with Santander? If so you would be better looking for another account now before going bankrupt. The Co-op come recommended but you must do it before bankruptcy otherwise they won't let you open one.
With your monthly outgoings, put down what you spend and be prepared to back it up with proof if needs be. The OR can always alter things if they think they are too high. I can't see you being allowed to continue to pay a relative back. They will probably have to be included in the BR.
Your car may be ok but that is down to the discretion of the OR. If they think it is too expensive then you would have to sell it and buy a cheaper one and pay the remaining funds across to the BR.
If you have more than £20 disposable income a month after your bills have been paid then the lot will have to be paid across for three years.
I recommend that you speak to an expert to go through all of this thoroughly. Either visit the CAB or give Viki (who posts on here) a call for some free advice.
I advise you take advice from an expert as your partner's share of any equity from the house will be taken, regardless of what he has agreed with his ex.
If there is no equity at the time of transfer that would be fine but the OR would want to know the valuation. Also, you would have to be careful as to what you spend any money you receive on.
Hi. We desperately need your help.
Posted - 24 February 2013 : 07:30:21
