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coco
Junior Member
United Kingdom
181 Posts |
 Posted - 24 February 2007 : 13:57:31
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Hi
Can you please help answer some of my questions i am about to petition my BR due to my IVA faling
1. I have a mortgage of 72500 with a redemption charge of approx 4500, the value of the house was conducted a month ago at 85000, what is the likely hood of being able to keep the property and how much equity would we looking at if we had the opportunity to buy it back from the OR.
2. I have a car on HP with a value of approx 4500, i have approx 4000 left to pay, as this is our only form of transport to and from work which is not in walking distance or on a bus route (20 miles away) what would be the chances of the OR allowing us to contiue to make the payments. We would not be in a position to purchase a cheaper car as there are no funds.
3. appox how much disposable income does the OR take.
Thanks
(PS high DD thanks for letting us know about this site.)
I apologies for my keyoards poor spelling and grammar. |
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Debtdummy
Junior Member
United Kingdom
267 Posts |
Posted - 25 February 2007 : 21:24:02
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Hello coco, as you know I am not an expert with BRs. However, I do have an appointment with the judge in April. As for the house I am useless here as I stopped paying my mortage to save for the rental.Our income changed so drastically we couldn't afford the house even after a bankruptcy. The mortgage would kill us and we have 3 Charging Orders about to land on our home(1 more than we had last month, deep sigh). I do know you and your husband have what's called beneficial interest in the property.
If you are both filing for a br, I may be in error here, but I believe a third party can buy your beneficial interest for you. You MUST tell the OR straight away you want your house and continue paying the mortgage! A 'real' expert, Dennis, will be along who can give you more detail.
As for your car. It 'may' be sold, but the OR( Official Receiver) will give you £2000 to purchase another one if this should happen.For some odd reason up to £2000 seems to be the going rate. They do use a car guide though stating make ,model and year to determine price.
What remains after your realistic living allowances will be paid to your creditors up to 36 months, after that the rest is written off. So, you will be discharged (some people are discharged 6-8 months from the petitioning date) 12 months from the date you petitioned, but may have to pay an IPA/IPO (financial agreement)for no more than 36 months. In short, you get an IPO if you disagree with the amount the OR states you pay back to your creditors.
The OR can take up to 75% of your DISPOSABLE income AFTER all reasonable living costs have been deducted. If you have £50 or less left at the end of the month nothing will be paid back to the creditors.
Living allowances include holidays, birthdays,haircuts, clothing,prescriptions,gluten-free and dairy product free diets(my daughter), professional journals,broadband IF work related,etc. There are more living deductions allowed under a BR than under an IVA. Why? I don't know,but for thank goodness for them . We would have starved, been naked (imagine going to work!), ran our cars like Fred Flintsone,used candles for lighting; and a host of other problems, under our unrealistic IVA!
Also, the judge will NOT sign your bankruptcy if you have not sought professional advice and that will be a waste of £475 per person. You will have to then seek the professional advice and pay the fees all over again. Contact, Payplan, CAB and CCCS.
Another *very* important point. Timing is CRUCIAL when it comes to getting a BR and opening a new bank account. Please read below.
Please remember to remove ALL cash from your account/s BEFORE being declared bankrupt, as after the Bankruptcy hearing, the money will technically belong to the OR, and he may refuse you access to it!!
IF THE ACCOUNT IS A JOINT ACCOUNT AND ONE ACCOUNT HOLDER IS DECLARED BANKRUPT THE BANKS WILL TREAT THE ACCOUNT AS IF BOTH HAVE BEEN DECLARED BANKRUPT
BANKRUPTCY AND BANK ACCOUNTS
*Once you are declared bankrupt*
Once you have been declared bankrupt, ALL accounts belong to the OR, so if you draw money out then you are committing an offence under the IA86.
The OR will inform the bank (or building society) if he has any interest in the account, until he has informed them the accounts belong to the OR not you:
*If the OR has an interest in an account*
If he has and you attempt to use the account you will be committing a criminal offence.
It is highly possible that the account will show on line as being fully operational, and it may be that it is, but if you use it then you are in deep poo-poo.
The majority of the time the account will be ‘frozen’ that is you can pay money in but can’t take any money out.
If this has happened and you have had benefits paid in then you must obtain written authority from the OR to ‘ask’ for this money back from the bank, some will, some will fight you like hell.
The majority of accounts the OR has interest in are those in debt and those with money in them.
*If the OR hasn’t any interest in your account*
First things first – the OR wont tell you unless you specifically ask!!
If the OR notifies the bank or Building society that he has no interest in the account, then the account is released back to the bank, NOT YOU.
Depending on the terms and conditions of the account will depend on if you are allowed to keep the account, only the bank will be able to tell you.
MOST banks and building societies stipulate in their T&C’s that they will not provide banking facilities, unfortunately most banks are slow to carry out these processes, so it is again possible that the account shows as being fully operational, which very often means the account will show as being fully active, when in reality it is not!
*After you have been discharged*
This is when the majority of us will see changes, these account suddenly vanish from you account details, as they are no longer classed as being in debt and the bank no longer holds them open for inspection by the OR.
*Who can a bankrupt open an account with*
The following are listed with the FSA as allowing un-discharged bankrupts to have accounts (or rather to open accounts):
Nationwide Building Society (Basic Flex Account)
Co-operative Bank (Cash Minder Account)
Barclays (Cash Card Account)
Gregory Pennington
Abbey
Woolich
You can apply to open any of the above accounts immediatly after you have been declared bankrupt, there is no need to wait for permission from the Offical Reciever.
All other basic account stipulates that you must be discharged from bankruptcy, and then they will look at you on a case by case basis!!
Please seek professional advise coco, as it is somewhat straightforward yet complex at the same time,but the OR is being paid by YOU to sort it all out. You just have to be honest and supply the information. You will be able to eat and sleep better daily; and believe it or not start a savings account again.
Oh! The amount of time a BR remains on your credit file is still 6 years(from the petition date)just like an IVA. People do tend to forget that an IVA is a type of bankruptcy meant for business owners originally. The homeowner sort of got dragged into the net.
The worst part, once you have accepted within yourself, to the core of your very being, that you have done everything humanly possible to pay back your creditors, is filling in that form! Do it online. It's easier to make corrections that way and print. DO NOT sign it UNTIL you are told you at the courthouse. You have to take an oath.
And whatever you do STOP paying your creditors(except your mortgage and all other secured loans if you can afford your house) you will need the money and the OR understands this. Also, continue to pay Council tax and utilities.
Continue paying the buildings insurance if you find can't afford your home until the mortgage company in 'writing' states they have taken possession of it.
I hoped this helped you with the basics.
Continue to post so others can read and benefit from your experience.
All I have left is my sense of humour. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 26 February 2007 : 21:38:39
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Hi DD, that's brilliant advice - have you ever thought of a career as a debt counsellor?
I have nearly finished completing the forms on line, but there are a few things I need to confirm - I need some info from a pension company that is proving difficult to get hold of, and I don't know if someone here can help me with the next question - where I have to list credit cards and bank accounts held do I need to list the ones who are my creditors?
Good luck with everything Coco and DD. I told my mum today and now it all seems real, and scary!
Where there's life there's hope! |
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Debtdummy
Junior Member
United Kingdom
267 Posts |
Posted - 27 February 2007 : 00:32:39
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Hello skippy, list all of your creditors, bank accounts, credit cards, car loans, store cards, etc. and utilities ONLY if you are in arrears with water,lights and gas. If the utilities are in your boyfriends name DO NOT list. If you share a bank account with him, remove your name so you do not have to list it. Only list your creditors as it's your BR. There is an insolvency telephone number listed on that site. They are very helpful. Ring them if needed, they are very informative.
Good luck my sister in debt.
Take care.
All I have left is my sense of humour. |
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Need some questions answered please.
