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Can anyone help or put me in touch with someone who can advise please?
Basically my limited company entered in to voluntary liquidation on 28th April this year. Due to personal guarantees on a business overdraft & loan combined with the fact that I had a breakdown and was unable to work I had to go personally bankrupt too. I have just had my telephone interview with the O.R examiner and the problem I have is in relation to the family home which is solely in my name.
Although I have lived with my partner for a number of years, along with our 5 year old and my two children from a previous marriage, the house has remained in my name so I was aware from the outset that this was going to be my only major asset of any significance in bankruptcy.
I have an interest only mortgage of £123,500 which had been in negative equity for a number of years, however due to the recent housing boom I thought it was best to get a couple of valuations from local estate agents to help me determine the beneficial interest (if any) in the house.
I didn’t inform the first estate agent of my impending bankruptcy and he valued the house at £135,000 with a view to getting around £130,000. We felt that £135,000 was overpriced so I got another estate agent in and this time explained the situation with my bankruptcy and also pointed out a few faults that could affect the market price. She valued the house at £119,000, which is definitely on the low side but better than £12,000 equity, so this was the value I entered on my bankruptcy forms.
I must emphasise at this point that stability for my children through this mess is the only thing that really matters to me and losing the family home terrifies me as we would struggle to rent with damaged credit ratings.
So, back to the O.R interview! It seems that she basically accepted my valuation of £119,000 and explained that the house would be transferred to the LTAU and reviewed at 2 years 3 months.
When I asked whether my partner or a family member could purchase my beneficial interest at a later date (I know I would have to get more valuations or possibly a surveyor in and there would have to be equity), I was told that there was absolutely nothing we could do until the 2 years 3 months had elapsed and the value of the house was reviewed at this point!
It seems ridiculous that had I entered a valuation of, say £125,000, that we would have had an opportunity to buy back the B.I, but as it stands the chances are that house prices will continue to rise over the next few years and by the time we have the opportunity to buy back the B.I it will be well out of our reach, leaving us pretty much homeless!
Please can someone help or advise where I may be able to get help as we are pretty desperate at the moment and struggling to cope with this situation hanging over our heads, possibly for the next 2+ years. We don’t mind paying for advice as long as it is the correct advice!
Sorry it’s a long one and thanks to this forum for giving me the opportunity to reach out.0 -
Hi,
I went BR in January and have just received letter from OR with a figure for IPA payable assuming no change in circumstances for 36 months - is this normal to happen 6 months in?
At the end of the 36 months, will I be all 'clear'? I understand that my BR is discharged after 12 months - will they ask for more after 3 years
Thanks!0 -
steve.g.67 wrote: »Can anyone help or put me in touch with someone who can advise please?
Basically my limited company entered in to voluntary liquidation on 28th April this year. Due to personal guarantees on a business overdraft & loan combined with the fact that I had a breakdown and was unable to work I had to go personally bankrupt too. I have just had my telephone interview with the O.R examiner and the problem I have is in relation to the family home which is solely in my name.
Although I have lived with my partner for a number of years, along with our 5 year old and my two children from a previous marriage, the house has remained in my name so I was aware from the outset that this was going to be my only major asset of any significance in bankruptcy.
I have an interest only mortgage of £123,500 which had been in negative equity for a number of years, however due to the recent housing boom I thought it was best to get a couple of valuations from local estate agents to help me determine the beneficial interest (if any) in the house.
I didn’t inform the first estate agent of my impending bankruptcy and he valued the house at £135,000 with a view to getting around £130,000. We felt that £135,000 was overpriced so I got another estate agent in and this time explained the situation with my bankruptcy and also pointed out a few faults that could affect the market price. She valued the house at £119,000, which is definitely on the low side but better than £12,000 equity, so this was the value I entered on my bankruptcy forms.
I must emphasise at this point that stability for my children through this mess is the only thing that really matters to me and losing the family home terrifies me as we would struggle to rent with damaged credit ratings.
So, back to the O.R interview! It seems that she basically accepted my valuation of £119,000 and explained that the house would be transferred to the LTAU and reviewed at 2 years 3 months.
When I asked whether my partner or a family member could purchase my beneficial interest at a later date (I know I would have to get more valuations or possibly a surveyor in and there would have to be equity), I was told that there was absolutely nothing we could do until the 2 years 3 months had elapsed and the value of the house was reviewed at this point!
It seems ridiculous that had I entered a valuation of, say £125,000, that we would have had an opportunity to buy back the B.I, but as it stands the chances are that house prices will continue to rise over the next few years and by the time we have the opportunity to buy back the B.I it will be well out of our reach, leaving us pretty much homeless!
Please can someone help or advise where I may be able to get help as we are pretty desperate at the moment and struggling to cope with this situation hanging over our heads, possibly for the next 2+ years. We don’t mind paying for advice as long as it is the correct advice!
Sorry it’s a long one and thanks to this forum for giving me the opportunity to reach out.
Hi there,
Sorry for the delay in getting back to you, I consulted our bankruptcy department to see if there was anything I could advise.
You are bound to waiting until the 2 years 3 months is up before the option to buy beneficial interest is reviewed. There is nothing you can do to change this time-frame. It is the decision of the OR to set that time period.
What I would say is the value of the house after the 2 years 3 months will depend on how the market does in your area. There’s no guarantee that the house will raise in value over that time. Also if the house had been valued with £12,000 equity the house may have been sold now to realise the interest.
Please don’t pay for advice – there is nothing they can tell you and you will be asked to live to a budget as part of your bankruptcy – paying fees for advice will not form part of this.
If you have worries about becoming homeless please don’t wait, speak to you OR – they will have the information and be able to realistically advise you knowing all the facts.
Thanks,
Jess0 -
Hello,
I am considering bankruptcy and would appreciate some advice. I have tried to complete the online form on the stepchange website, but it won't let me proceed as I have no income and no priority bills. My husband is working and since I finished work in March, his income has been running the house. I have been on antidepressants for the last 8 months and gave up my job in March when my doctor told me that I couldn't possibly go back to the place I was working at, as that's what made me ill in the first place. I had applied for redundancy there, but after being approved, it then fell through, so I felt there was no option but to resign. I was hoping that once I resigned from there, I would quickly get back to normal and get a new job. Unfortunately, my depression has not lifted and I am unable to contemplate looking for work in the foreseeable future.
My husband and I have separate bank accounts and he has been very supportive since I finished work and has been running the house on his sole wage. When I finished work, I got holiday pay, so for April and May, I was able to cover my debts with this money. This month, I have no income and no way to pay my debts.
I had my house repossessed 19 years ago and owe about £35,000 still on this. I have 2 credit cards, which are both closed, but have monthly interest added to them. I owe about £18,500 in total on these and have been paying £450 p/m to them just to tread water. On one of the cards I have paid the company about £36,000 over the last 10 years and have cleared about £250 in total off the balance.
I also owe about £4000 authorised overdraft with my bank account.
The situation is making me depressed and my depression is making me unable to get a job, so its a vicious circle.
All of the household bills are up to date. We rent our place from the council, but the tenancy is in my husband's name, as he was already living here when we met.
I don't have any assets. My husband owns a car and I am named on the insurance docs as a named driver, but he needs the car to get to work (we live in a village and there is no public transport).
My 21 year old daughter also lives with us and she works, but doesn't pay any board. She buys her own food and picks up shopping for us if we need it and takes us out for meals and gives my husband petrol money as he takes her to work in his car.
I have printed the form off to apply for bankruptcy, but my head is boggled with it. Could you please give me help on the following:
1)Am I likely to have a bankruptcy granted, or could it be refused?
2) Would my husband be liable to pay any of my debts?
3) The form asks for the total household income but I don't know what my husband or daughter earn. We have always kept our own bank accounts and my husband does all of the bill paying, due to me having debts when we met. What can I say on the form?
4) On the form it asks if I have the use of a car. As I'm named on the insurance docs, does this mean I say yes, even though I don't drive it and it doesn't belong to me? Can my husband be made to sell his car to clear my debts?
Please help. Many thanks, Mofski0 -
As it's the weekend and Stepchange probably won't reply until Monday, here are my answers:
1) Your bankruptcy will definitely be granted. 100% certain.
2) your husband only becomes liable for joint debts. On your list it sounds as though there aren't any.
3) your husabnd's income only matters so that he pays a fair share of your household bills. As he is paying all of them this isn't going to matter. You can write that you don't know on the forms, or you could ask your husband, he really isn't going to be made to pay any money to your creditors or to an IPA.
4) yes say that you have the use of the car. But if your husband bought it, then it will not have to be sold.0 -
I'm two weeks away from my 12 months discharge and need some advice.
I want to rebuild my credit in a correct and responsible way, however I'm in desperate need of replacing my car. After doing some research I'm thinking of looking into car finance for an amount of around £3,500 over around 48 months. I fully understand that it will be costly, but I can now afford to manage to do this and hopefully repair the damage to my credit status (although I won't be applying for anything else whilst paying for a car).
When would be the best time for me to start to enquire or apply for possible car finance? I understand that this is one way of building up my credit status, and I really am in need of replacing my car as soon as possible and definitely by the end of August.
Thanks a lot.0 -
Hello I'm new to all of this
I have spoken to step change and have decided bankruptcy is the only option.
I know I have to close my current account but I owe Barclays money so they won't let me open a basic account with them
My local credit unions don't do current accounts and you can't join another one.
My only option that I can see is for somebody else to open a bank account and for me to use it but is that possible? I don't want to be committing fraud as well as everything else that is going on!
Thanks for your help.0 -
Hello I'm new to all of this
I have spoken to step change and have decided bankruptcy is the only option.
I know I have to close my current account but I owe Barclays money so they won't let me open a basic account with them
My local credit unions don't do current accounts and you can't join another one.
My only option that I can see is for somebody else to open a bank account and for me to use it but is that possible? I don't want to be committing fraud as well as everything else that is going on!
Thanks for your help.
Is the co-op one of your creditors? if not, open a cash minder account but don't mention you plan on going bankrupt. They don't take on undischarged bankrupts, but if you have an existing account it should stay open.
You can open a Barclays account once made bankrupt too
0 -
Hello I'm new to all of this
I have spoken to step change and have decided bankruptcy is the only option.
I know I have to close my current account but I owe Barclays money so they won't let me open a basic account with them
My local credit unions don't do current accounts and you can't join another one.
My only option that I can see is for somebody else to open a bank account and for me to use it but is that possible? I don't want to be committing fraud as well as everything else that is going on!
Thanks for your help.
The Natwest have a decent basic account, and from later this year they're removing the restrictions on using other ATM machines, so that'll make life a whole lot easier. There's also one called 'This Is Money' who'll take you before, during and after bankruptcy. Having said that, do you owe Barclays on your bank account or is it a Barclaycard? You may be able to keep your Barclays account open. I had a Barclaycard in my bankruptcy and after a couple of months of my bankruptcy they wrote the debt off and put my account as settled.0 -
Thanks for the replies.
I owe on a barclaycard, they told me they no longer allow even a basic account if you owe them anything anywhere.
I will try nat west first 0
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