Bankruptcy seems only choice

loopylu36

Hello

I am new to this forum although I am a regular on DFW pages.

Firstly, I would like to say thank you to Rosey and Scarlett I have read both of your diaries from start to finish and you are both an inspiration :A Also thanks to those of you that replied to my post on Headache's thread. I have several questions tho, so thought it best to start my own.

Situation currently is that I am out of work having been "let go" in May. This was becasuse i was signed off sick with depression and my employers were less than sympathetic to say the least. As i had only been with them for three months there was nothing i could do.

Prior to this we had set up DMP but now can't pay that. My OH's salary covers mortgage, ultities etc, and my salary was the DMP payment. I am looking for work but finding it hard, although I am hoping to now register as a childminder. This however a) won't pay a fortune and b) will take 3-6 months to register and start bringing in money. Even if we paid say £500 to a DMP it would take us ver 20 years to repay debts and that's if anyone ever stopped adding interest which they haven't yet!

Three months ago I would rather have poked sticks in my eyes than go b/r, but this whole process kind of changes your outlook on things and I am now thinking it would be a sensible option.

I wonder if you lovely people could answer a couple of questions for me?

1. Our house doesnt have a lot of equity in it and my dad could buy this from the OR, which understand is an option given to you by OR so we could keep house right, which woud be FANTASTIC. However, losing our house is not so much a worry as my second problem...

2. We have second house also mortgaged and also not much equity in it. My mum actually owns the first 15% of any equity, although I understand that the OR could choose to disallow this and make it our asset. However, I assume that the same option to purchase would be available? The reason this house can't be sold is cos my mum and dad live in it. They are retired and had to sell their house cos they were mis sold a pension mortgage and found out too late in the day that it wouldn't pay off the mortgage. Hence the buy to let and my dad having some funds available. Bu if this house had to be sold,they would be homeless too and at their age I think they deserve a little more security than a rented house that the llord could sell at any time and of course I would feel awful that I had made them homeless

3. I fully expect that we will have an IPA implemented and that's fine, but could someone give me any idea of how much of our "surplus" income this is likley to amount to?

I'm sure I will think of a lot more questions and if we decide to go down this path, I think I may start a diary if no one minds, as I have found other's diaries really insightful.

Thanks

Loopy x

jmc2305

HI Loopylu36.

Sorry I can't be of much help but as you are aware there are some great people with fab advice out there - it's only a matter of time before you get some guidance.
Welcome to the board.

peachyprice

Hi Loopylu,
how much equity, realistically, is there in each of these properties?

fermi

loopylu36 wrote: »

3. I fully expect that we will have an IPA implemented and that's fine, but could somene give me any idea of how much of our "surplus" income this is likley to amount to?

50 to 70 % on a sliding scale.

Banded like this:

dalip

Hi Loo welcome to the bc forum.

First off who have you done your DMP with?. If one of the debt charities like CCCS or NDL then you need to go back to them and expain the change in circumstances. The reason i say this is the judge will ask if you have taken legal advice.If not he can refuse your petiton.

I can not help on the house front i am afraid.


With regards to an IPA the allowances in bc are far more generous than with a DMP. No one can say what IPA you may have to pay. It all depends on you income,, and expendture. The one thing i can tell you is you are allowed £99 surplus before an IPA will be sought.D

loopylu36

peachyprice wrote: »

Hi Loopylu,
how much equity, realistically, is there in each of these properties?

Hi Peachy

Slightly difficult to say in current climate but BTL property is FTB market, so I would guess if we were going to sell it, even if it went on market for £130k we would no doubt end up selling under Stamp duty threshold of £125k which would leave about £10k after costs (about £14k before)

Our own house would be about the same. Worth about £185 - £190 (but I doubt top end at moment) and mortgage is £172k

loopylu36

dalip wrote: »

Hi Loo welcome to the bc forum.

First off who have you done your DMP with?. If one of the debt charities like CCCS or NDL then you need to go back to them and expain the change in circumstances. The reason i say this is the judge will ask if you have taken legal advice.If not he can refuse your petiton.



I am on DMP with CCCS - they are due to ring me on Tuesday to do a review but in the meantime I have spoken to NDL. He answered some questions for me but didn't actually advise me one way or the other.

dalip

Cheers loo. Let us kow what CCCs advise on tuesday.Until then you could go on the IS website and take a look at the forms to give you an idea.D

tigerfeet2006

If you want to register to fill them in online then you do that here:

https://www.insolvencydirect.gov.uk/isolv/

If you want to download them to fill in by hand then you need these two plus the notes:

Debtors Bankruptcy Petition:

http://www.insolvency.gov.uk/pdfs/forms/form6-27.pdf or http://www.insolvency.gov.uk/pdfs/forms/form6-27.doc

Statement of Affairs (Debtor's Petition):

http://www.insolvency.gov.uk/pdfs/forms/6-28.pdf or http://www.insolvency.gov.uk/pdfs/forms/6-28.doc

Statement of Affairs (Debtors Petition) (Guidance Notes):

http://www.insolvency.gov.uk/pdfs/fo...rsguidance.pdf or http://www.insolvency.gov.uk/pdfs/fo...rsguidance.doc

JCS1

Please make sure you take specilist advice regarding the 2nd property. I seem to recall that only the "family home" can have the BI purchased and the OR has 3 years to deal with, other rental property vests immediately in the OR. Though the guidelines might have changed in the last 6 months since I left the IS.

fermi

JCS1 wrote: »

Please make sure you take specilist advice regarding the 2nd property. I seem to recall that only the "family home" can have the BI purchased and the OR has 3 years to deal with, other rental property vests immediately in the OR. Though the guidelines might have changed in the last 6 months since I left the IS.

I seem to remember something similar from the few times I have have been brave enough to look at the property sections of the manuals online.

I think there are certain provisions under the EA2002 for dealing with a "family" home that only apply to properties if the bankrupt, their spouse or former spouse are living in the property at the time of the bankruptcy order.