Considering bankruptcy
Staceyw1985
Posts: 1 Newbie
Hi first time I have ever done anything like this ,but I have got to the point where I'm literally being chased for my debts all the time!
I'm a single mum living with my parents for the last 8 years due to a messy break up, I had a joint mortgage with my ex but the house got repossessed last year leaving us with just short of £40,000 debt! I also have about £5000 in debt for credit cards overdrafts and catalogues,I now in a minimum wage job just reaching25 hours per week!
I considering bankruptcy as I feel it's my only option,
However Ian concerned as it says they can take your assets I did have a car in my name up u til about 18 months ago when I signed it over to my mum as I could afford the finance which was also in. Her name, I continued to pay tax petrol and insurance as she let me carry on using the car because she now owns 2 cars,
Can this be classed as my asset because I have contributed to the car i.e. Tax petrol and insurance? It is registered to my mum not me,
Th aks
I'm a single mum living with my parents for the last 8 years due to a messy break up, I had a joint mortgage with my ex but the house got repossessed last year leaving us with just short of £40,000 debt! I also have about £5000 in debt for credit cards overdrafts and catalogues,I now in a minimum wage job just reaching25 hours per week!
I considering bankruptcy as I feel it's my only option,
However Ian concerned as it says they can take your assets I did have a car in my name up u til about 18 months ago when I signed it over to my mum as I could afford the finance which was also in. Her name, I continued to pay tax petrol and insurance as she let me carry on using the car because she now owns 2 cars,
Can this be classed as my asset because I have contributed to the car i.e. Tax petrol and insurance? It is registered to my mum not me,
Th aks
0
Comments
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Hi Staceyw1985 and welcome to MSE,
It sounds as though the car may be subject to hire purchase agreement. If that is the case we would need more details about the agreement, and specifically how long it has to run. If it is on hire purchase it is not an asset of anyone's until the final payment is made, because until that point it is own by the finance company. But after you go bankrupt it is unlikely you can continue to contribute to the monthly payments, which means your mum would have to pay them, and if the agreement ends whilst you are undischarged then you may have a beneficial interest in the car based on previous payment and it may be at risk at that point.
If your debts are around £45k in total then bankruptcy is a potential solution for you. As the main debt is a mortgage shortfall you just need to be aware of a couple of other things. Your ex would still owe the full amount even if you go bankrupt. The property was in joint names, so this creates joint and several liability and only your liability will end once you go bankrupt. And you must be careful not to sign anything from the old mortgage lender after going bankrupt. They may ask you to sign a 'deed of acknowledgement', this means you accept liability for the shortfall irrespective of the bankruptcy. This would make the bankruptcy quite pointless.
However, you may have other options depending on the age of the mortgage shortfall. When did you start to struggle with paying the mortgage please? Have they got a CCJ against you for this debt?
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Staceyw1985 wrote: »Can this be classed as my asset because I have contributed to the car i.e. Tax petrol and insurance? It is registered to my mum not me,
Th aks
If the car finance was taken out by your Mum and she is the person named on the agreement - then you don't need to worry. If you have paid your Mum reasonable expenses to use the car - that's fine too.0
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