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emilyjm
Starting Member
36 Posts |
 Posted - 24 September 2008 : 17:51:52
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| hi mt partner and i have decided to bankrupt but have no idea where to start, we have seeked out alternative solutions but none of them will be of any help, we own a propertie and need to know where to start with the process and whether to get rented accomadtion now before we declare it or whether to wait until after? can you help? |
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John
New Member
United Kingdom
73 Posts |
Posted - 24 September 2008 : 19:27:15
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Hi emilyjm
can you give more detail?
How much do you owe?
How much does your partner owe?
Do you have any joint debts?
Is there any equity in the property?
Do you have a monthly income?
Does your partner have a monthly income?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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emilyjm
Starting Member
36 Posts |
Posted - 25 September 2008 : 14:19:25
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hi john, we owe £10,500 on credit cards which tally as joint, are house is in minus equity and we also have a £21,000 secured loan on the house, my husband and myself both work, my partner full time and myself part- time as we have a 3 year little boy to care for as well, my husband gets paid weekly and i monthly we have been to the citizens advise and the put rose petals on everything like they do!, i then spoke to the offical dept advise helpline and before i had even finished explaining the rest of the outgoings a month the assistant advised i was already going well over our incomings, and as the house was in the minus to go bankrupt, br is something ive wonted to do for a while now just to get rid of all the stress its causing on our family life, we have
£968 morgage every month and truth is we purchased a house we simply couldnt afford, i am at the stage now where as from this month im not paying my morgage so we can build up funds to pay for the br, i just wonted to know if we should stay put for now or look for rented straight away? my husband seems to think if we go into rented now the court wont br us becuase we will be able to then afford the credit cards??? the rent we are looking at will only cost us £700 so we are saving over £200 a month? is this right?
www.Bankruptcyhelp.org.uk
0800 078 9367
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BankruptC
Senior Member
1030 Posts |
Posted - 25 September 2008 : 14:32:25
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Hi Emily,
We moved out prior to BR and it was no problem at all. With not having to pay the mortgage and secured loan, moving out saved us around £700! I can see what your husband's saying, in that you will have £200 extra per month, but you would also have the shortfall of the mortgage AND the secured loan (presumably with a shortfall too!). So you would need to go BR to clear those debts anyway! :-)
It's usually best to move into rented before BR so your BR doesn't show on your credit file, thus giving you more chance of passing the credit checks.
As I say, we moved into rented, went BR and handed the keys back. Our mortgage and secured loan shortfalls were included in our BR as we included them in the forms, both in the secured AND unsecured sections, actually writing in 'possible shortfall' next to each.
You will get through this hon. We were in a VERY similar situation to you this time last month-high mortgage and secured loan, hubby working full time and me part time, little one at home too (but mine's only 2!). We went BR 2 weeks ago and so far it's really been ok!
I know what you're going through, so if I can be any more help at all, hon, just shout! :-)
C. x |
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pix1
Average Member
689 Posts |
Posted - 25 September 2008 : 14:37:15
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| On balance, I would say you might as well hang around in your current property as long as possible. who knows, if you have defaults or ccj's on your credit file already this might make passing a credit check carried out by a letting agency difficult, anyway. I have asked a few letting agents what their rules are and it seems the worse that can happen is you might have to pay an extra month or two's rent in advance if you are BR. It would be up to the landlord. It is best to STOP all mortgage payments and save the money for renting later. You have to stop all mortgage payments to avoid being held liable for any mortgage debts. |
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pix1
Average Member
689 Posts |
Posted - 25 September 2008 : 14:40:46
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emilyjm
one other thing.
the court will not refuse to bankrupt you unless your debts are below £12000, you are currently in an IVA or are already BR. The OR will assess your income once you are BR and will try to get an IPO for 3 years if you have surplus income. clearly it is best to ensure you do not have surplus income. Try the Insolvency Service website for info. Good luck. |
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emilyjm
Starting Member
36 Posts |
Posted - 25 September 2008 : 14:54:47
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thank you so much pix1 your help has been great, im finding it all so confusing at the mo and its nice to finally talk to someone that has been through it already!!
as of the first next month it will be the first payment we stop paying on the morgage, when would you say to start looking into moving into renting?
as we only have £400 in the bank at the mo and thats not enough to pay for the rent and deposit let alone the court charges? and when did you find that the morgage company asked for the keys, what was the time scaleyou had?
sorry for all the questions but i feel like a buldozer at the mo!!
with ref to other bills what shall we continue paying at the moment ie gas electric etc etc xxx
do we declare it after the morgage company take the house? and when should i pick up the forms to get the ball rolling?
we also have a "satisfied" ccj from a year and half ago will this show or affect us on the renting credit check?
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BankruptC
Senior Member
1030 Posts |
Posted - 25 September 2008 : 14:55:53
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Hi again,
Just to say many people on here have found lettings agents won't even entertain a BR, others have needed a guarantor (mine asked for a guarantor in every case, not just for those with bad credit), others have asked for up to 6 months up front! In fact one person I know of was asked for 6 months up front, which they managed to scrape together, then once the 6 months were up, they were asked for another 6 months in order to stay!
I would defo say ring round your local ones as they do all differ in their approach. I personally found the smaller ones more amenable. The other option of course is a private landlord, who advertises in a local paper or a newsagents' window as they are unlikely to run a credit check.
With regards to timing, it's up to you I guess. We moved before so we knew we had secured somewhere for us and more importantly for our little boy. I would have hated the stress of going BR, then worrying about finding someone to take us on with BR on our credit file! (But then, as Pix says, if someone already had a CCJ, it may not make too much difference.)
Keep posting hon and let us know what you decide!
C. x
PS. Does the court really refuse BR if you have less than £12K of debt?! I've always thought there was no minimum for a debtor's petition, but £750 or so for a creditor's one?! |
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emilyjm
Starting Member
36 Posts |
Posted - 25 September 2008 : 14:57:29
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sorry that message was from bankruptc but thanks to pix1 aswell xx x woops scatter brain!quote:
Originally posted by BankruptC
Hi Emily,
We moved out prior to BR and it was no problem at all. With not having to pay the mortgage and secured loan, moving out saved us around £700! I can see what your husband's saying, in that you will have £200 extra per month, but you would also have the shortfall of the mortgage AND the secured loan (presumably with a shortfall too!). So you would need to go BR to clear those debts anyway! :-)
It's usually best to move into rented before BR so your BR doesn't show on your credit file, thus giving you more chance of passing the credit checks.
As I say, we moved into rented, went BR and handed the keys back. Our mortgage and secured loan shortfalls were included in our BR as we included them in the forms, both in the secured AND unsecured sections, actually writing in 'possible shortfall' next to each.
You will get through this hon. We were in a VERY similar situation to you this time last month-high mortgage and secured loan, hubby working full time and me part time, little one at home too (but mine's only 2!). We went BR 2 weeks ago and so far it's really been ok!
I know what you're going through, so if I can be any more help at all, hon, just shout! :-)
C. x
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BankruptC
Senior Member
1030 Posts |
Posted - 25 September 2008 : 15:02:38
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Tee hee no worries, Emily! :-)
I replied again just before you. Have a read and let me know what else you'd like to know!
C. x |
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maizie
Average Member
United Kingdom
566 Posts |
Posted - 25 September 2008 : 15:26:55
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It was my understanding too that it was £750.
Maizie |
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no idea where to start
