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YuGiOhMart
Starting Member
United Kingdom
3 Posts |
 Posted - 14 November 2009 : 22:05:09
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Me and my wife have unsecured debts (around 79k) and negative equity in our house (secured debt around 230k, house value 180-200k). HMRC have started action against us (distraint).
We are both looking at declaring bankrupcy and would like to remove as much of our debt problems as possible.
My question is, can we try and rent a new home, then hand the keys back to the mortgage company on our mortgaged house, then declare bankrupcy?
By handing back the keys to the original house, this should convert the negative equity into unsecured debt, which can then be covered properly by the bankrupcy. It also means that we have more choice in finding rented property as we dont have bankrupcy on record yet. We have stopped paying all of our debts (except gas, elec, phone, etc), including the mortgage and secured loan, in order to save up enough money for the rental deposit/advance and the bankrupcy.
We have one dependant child (15) living with us and one non-dependant (daughter 17 who has a baby).
I have loads more to ask, but this is the most essential. I have gathered a lot of information from your forums already, but feel that it is probably best to ask the questions that specifically related to our situation.
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 14 November 2009 : 23:51:03
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hi and welcome to the forum
in a nutshell yes answers your questions, you seem to have a good grip on the procedures pre-BR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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YuGiOhMart
Starting Member
United Kingdom
3 Posts |
Posted - 15 November 2009 : 01:48:28
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Thanks for boost - almost of all of the information I gained from these forums, so it shows that the system works!! Also, thanks for reply at such a late time.
More questions,
1) If the bankrupcy process is started before HMRC distraint action is taken, will this stop the HMRC distraint ? Or will it happen anyway?
2) What should I tell the mortgage company, securured loan company, credit card companies, etc that are all phoning ? I wouldn't have thought that telling the bank about impending bankrupcy would be a good idea, as they could freeze my business account (not bothered about the personal account, as this already over its O/D limit anyway). Is it best just to try and put them off by telling them that I am trying to sort out my finances and to give us a bit more time?
3) Is there anywhere I can get more information about the HMRC distraint action. I know the basics (i.e. basically bailifs), but what I am worried about is that my 17 year old daughter and her baby are likely to be in when they turn up (whereas me and wife will be out working) and that is not really fair on them. When I spoke to HMRC they said that they could not arrange an appointment time (which if they did, I could make sure that I was in).
4) Is there much benefit from using a bankrupcy agent (such as Reviva), rather than gather the information from forums such as this?
5) Is it worth trying to set up a new (basic) bank account prior to the bankrupcy? Or is it likely that an existing account (that is not overdrawn at that time) can be converted (different bank to the mortgage)?
I am sorry there are so many questions, but this a BIG step for us and we want to try and get it right.
Martin |
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theguvnor
Junior Member
100 Posts |
Posted - 15 November 2009 : 06:25:43
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hello, cant help with all your questions at the moo, but certainly start the ball rolling by opening a co-op cashminder a/c. you should be able to complete forms without an assist service and any questions you have re the forms can all be answered on here. i presume you have allready had professional asvice re your debts?
cheers. |
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theguvnor
Junior Member
100 Posts |
Posted - 15 November 2009 : 06:52:11
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As i understand it The Tribunals, Courts And Enforcement Act 2007, introduced the term 'legally taking possession of goods' in place of the term 'distraint' and the phrase 'controlled goods agreements' in place of 'walking possession agreements'.
now i believe this act allows HMRC to attend your house and lay claim on Some of your items to sell in order to recoup monies owed to them. i believe that once they have called to advise you of there intentions they are not obliged to make an appointment to attend as long as they visit between sunrise and sunset.
HMRC will have no power of entry to your house (this would need to be obtained from the court)so they cannot usually force their way in.
in relation to the order they may only lay claim on items solely owned by you therefore any jointly owned items or gifts cannot be taken.
they may lay claim on any vehicle you have and usually they will not accept it as a 'tool of the trade' sgain they will hold this for 5 days from seizure to allow you the oppertunity to settle the liability.
i cannot fully advise what will happen if you go Br prior to this action but you could potentially end up with a BRO depending on your assets/tax liability.
hope it helps and remember they cant force entry or take jointly owned property ;-) |
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RHB
Senior Member
1159 Posts |
Posted - 15 November 2009 : 08:18:32
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| You also need to consoder that going bankrupt may well affect your business account. |
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Jane.l
Average Member
511 Posts |
Posted - 15 November 2009 : 11:25:11
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| Don't forget that the shortfall on the house will technically only become unsecured on sale of the house, not when you hand the keys back so you will still be chased for the mortgage and secured loan so stay firm and do not pay, there is little point if you are giving the house up but the mortgage company will be persistent. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 15 November 2009 : 12:31:53
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answers in order of being asked
1
once you are BR HMRC can not legally pursue you for any debt, as said above they cannot force entry without a court order, any CCJ against you becomes invalid once BR
2
tell them you are taking advice as regards your financial situation and you will be in touch shortly, any that don't accept this fail to answer the security questions correctly and they cannot/will not talk to you, also it it sometimes worth buying a PAYG phone and giving them all that number and choosing whether to answer it , leave it on silent. Also any business A/Cs will probably have right of claim on them against other debts to that bank so i would open 2 COOP cashminders accounts use 1 for business and other for personal.
3
as already mentioned they cannot force entry without a court order of which you would know if it has gone anywhere near that far yet, advise your offspring not to let anyone in.
4
Professiona experts are just that. experts. thay handle nearly everything (reviva does anyway) they answer all questions and put your mind at rest , they deal with the creditors,sort out the forms, attend court , deal with the OR i cannot deny you can do the forms yourself and people do, but it is a personal choice, i cannot recommend Reviva rnough, they are not expensive and they offer a complete service from before BR to after discharge.
5
already answered, yes open COOP cashminder account(s)
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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YuGiOhMart
Starting Member
United Kingdom
3 Posts |
Posted - 15 November 2009 : 14:03:39
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Thanks to all that have given answers here.
I will be calling Reviva shortly.
I will try to keep you posted about my situation.
Thanks once again.
Martin |
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Me and my wife have unsecured debts (around 79k)
