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karl.davies71
Starting Member
United Kingdom
5 Posts |
 Posted - 01 September 2009 : 13:57:03
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| Hello, I am new to the forum. Could any one please help answer my questions. Im 24k in debt consisting of 17k bank loan, 2k overdraft and 5k on 2 credit cards. I lived with ex partner for 10 years and paid a nominal amount towards rent, she owns house, her name on deeds nothing to do with me. 5 months ago we split up and I moved 200 miles away to live with my parents, obviously I had to give up my job. I had no savings and no income but had access to 2 credit cards that I had never used. I got a job immediately but was using cards to live because I was paid monthly. Job lasted 2 months as I was not in the right frame of mind due to the stress of the break up and especially due to only seeing my daughter every fortnight. I went off the rails for the next 2 months, drinking heavily and relied solely on credit cards. The credit cards are now to their limits and I have no means of paying all creditors back. In order to live, I have now had to claim benefits and only now, 5 months after the break up, I have realised what a mess I have got my self into financially and I am getting phone calls and letters from creditors regarding missed payments. Mentally I am beginning to sort myself out and I am actively looking for work, however this is currently proving difficult. I have visited CAB regarding possible bankruptcy and they have advised that i could have an interest in my ex's property. Please could someone advise if this is correct as I don't want to affect her credit rating as this could have an impact on my daughter. Also advised if i went bankrupt, it could be 7 or 8 years till i was discharged due maxing out both credit cards in only 3/4 months after first activating them. My other option from CAB was offering a token payment to creditors until my financial position improved. Can anyone advise me what the best step would be to take, token payment, bankruptcy or other. I would be grateful for replies regarding my concerns,thanks in advance, sorry for long post. Karl |
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RHB
Senior Member
1159 Posts |
Posted - 01 September 2009 : 14:19:49
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| Did your partner & you both work for that 10 years & who earned more? If the rent went towards the mortgage it could be argued there is some element of beneficial interest in the house for you. |
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karl.davies71
Starting Member
United Kingdom
5 Posts |
Posted - 01 September 2009 : 16:16:15
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| yes we both worked earning about the same however towards the end she earned more.The rent money went solely on food she paid the mortgage from her account.She was already living at the house before i met her,though only bought it about 3 years into our relationship.Grateful for replies,thanks in advance.Karl |
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karl.davies71
Starting Member
United Kingdom
5 Posts |
Posted - 02 September 2009 : 18:59:50
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| iwould be grateful for replies to my concerns please.Firstly if i decided br was an option would i have any financial benefit in my former partners house?This is not something i would wish as i do not want any disruption for my daughter?Also what would the chances of my discharge lasting far longer than the normal 12months due to maxing out on the credit cards so quickly?Thanks in advance,Karl |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 02 September 2009 : 19:09:54
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Yes, you 'could' have a beneficial interest in your ex-partner's house. This wouldn't affect their credit rating but it would mean that if there were equity in the property the OR 'could' deem that 50% of it is yours and try to release that equity to pay to your creditors.
I say 'could' because I don't think that there are any hard and fast rules regarding beneficial interest (BI) in a property if the mortgage/deeds aren't joint. It isn't an exact science and a case of 'if someone has contributed to the rent/upkeep for X years then they have a BI'. Hopefully Melanie or Paul will add a comment regarding any experience they have had with clients and BI.
If not you can contact them via the 'Experts' link on the left-hand side of the screen and their numbers/website addresses should be listed.
A Bankruptcy Restitutions Undertaking (BRU) also looks likely as you used your credit cards with no real means of paying then off however there also aren't any strict rules regarding this so you may get away with it. A BRU means that the bankruptcy restrictions (not being able to be a director of a company, having to tell creditors that you are BR if you want more than £500 of credit, etc.) will apply for a longer period of time. You would still be discharged from BR after 12 months but the restrictions would last until the BRU expired.
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karl.davies71
Starting Member
United Kingdom
5 Posts |
Posted - 02 September 2009 : 19:47:14
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| thank you for your reply ,i will contact Melanie and Paul,hopefully you can also add your expert advice to any future questions i may have,Many thanks Karl. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 02 September 2009 : 22:13:42
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From what you have said above I would recommend not rushing.
Rushing is a common problem and in the first instance I would suggest you try to stabilise your situation and get some normality back to your situation.
The debts can be put on hold via a debt management plan while you get yourself back on your feet. Then when you are settled and have an income and are back in control you will probably be in a better position to make a sensible decision about the way forward.
There are other solutions to bankruptcy and it is important to take time to review these.
Also by giving yourself time it will show the OR that flipped out because of a personal challenge and then you tried to get back in control of the situation by giving yourself time to recover.
just a thought
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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karl.davies71
Starting Member
United Kingdom
5 Posts |
Posted - 03 September 2009 : 10:41:28
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| Many thanks for your advice,i will take everything on board before deciding my next step,thanks again Karl. |
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Hello, I am new to the forum.
