About to go Bankrupt

In_Deep_2 · 13 November 2008 at 9:44AM

Hi

Need some advice from someone who has maybe done this already. I am soon to be made bankrupt and would like to know how I can keep a foreign property? Is it possible to just not tell them about it try and put away some money to cover mortgage until everything dies down!!

My husband and I own our own business and are putting into liquidation, until 2 weeks ago I would have never dreamed of doing this. But then 2 weeks ago due to a downturn in the economy (we are in the building industry) the bottm has fallen out of our lives, we have no work, no work no money no bills get paid I am sure you have all heard it before. Anyway we have a good standard of living and have had for several years but we are personal gaurantees for the business loans etc and could not afford them. Out house is in negative equity with Northern Rock mortgage just about to end fixed rate period so we have no choice. Debts are too high for IVA and many are secured.

My husband has been offered a job due to start in January I am currently not working. Is there a way we can keep our house abroad?

maxmycardagain · 13 November 2008 at 9:49AM

firstly you MUST take advice from the proper sources, CCCS, national debtline, CAB, etc.

having a LTD company, a UK house and a property abroad will make things complicated to say the least. (i assume the business is Ltd as you mention "liquidation", if he/you are sole traders its not liquidation as such)

would you BOTH be going BR, who owns the property abroad, are all debts joint, etc, etc...

quite a few will say sell the house abroad and pay your damn debts.....so be ready

good luck

(BTW, just as a note, is 2 weeks really sufficient time to consider going BR? isnt hubby owed monies due in?)

In_Deep_2 · 13 November 2008 at 10:04AM

I Have had some input from an insolvency practitioner. Our company is a Limited company so liquidation is our only option. Most debts are joint, property abroad is in both names, but has no equity we only bought it 2 years ago in the peak of the prices so it may be in negative now. We are currently owed some money but it would not be enough to cover everything and if we liquidate now then the business creditors will get something out of it although not all of it. The bankruptcy has to be done because whatever the banks don't get from the company they will come to us for as we gave personal gaurantees for our business.

In_Deep_2 · 13 November 2008 at 10:08AM

If I though selling my villa would pay everyone I would sell it tomorrow but property is just not selling even abroad, its probably in negative equity although I don't know for sure. Selling would not resolve my issues I think thats what I am saying.

maxmycardagain · 13 November 2008 at 10:49AM

any UNsecured debts can go via a CCJ and charging order to become a SECURED debt on your properties (just so you know what to expect), which in turn means the debt would not be written off in a BR. and payable by you from the proceeds of any eventual sale.

courts have issued CO's post-BR (though they shouldnt) so be prepared for that, and a court rarely overtuns another courts decision

BTW, in my experience, no creditor gets anything from a liquidated company once the IP and HMG have had thier slice, unless you have cash in the bank, money owed on the balance books and equipment to flog.

About to go Bankrupt

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