Renting when Bankrupt????

Useless_with_wonga

Thinking Bankrupcy might be the only option left for us after IVA was rejected by MBNA 29% of vote and voted "No" despite being offered 46p in the £. We are attempting to negotiate with a final offer of 70p in the £ but i am not hopeful.
They seem determined to reject the IVA no matter how good an offer we put forward:mad:
All the other creditors including RBS (who we owe twice as much to) agreed the 46p.
Anyway we will know on Wednesday how it's going to pan out (2nd creditors meeting)
Just a bit worried about Bankruptcy have confirmed i will not lose my job which i was afraid of so thats some relief.
Have accepted we will lose the house so will need to look at rented but on research noted some landlords will not rent to an undischarged bankrupt which is sort of worrying. Where are we supposed to live?
Anyone any knowledge of how this works in practice?
Loads of other questions but they can wait until i know for sure that we have to take the bankruptcy option.
Sort of feel a bit empowered now to be honest MBNA being difficult could see that my occupation most likely prevented me considering bankruptcy but now i have had the courage to ask my employer it appears it is not a sackable offence although still not viewed favourably i will keep my job.
So as i see it MBNA can take what i can afford 70p in the £ on an IVA or they can have 2p in the £ when i declare myself Bankrupt a no brainer really can't see why they are saying "No"
It's a long wait until Wednesday.

jamesd

Some will, some won't. Be up front about the situation and in particular your ongoing income and some landlord is likely to welcome a tenant who is likely to be around for a while due to limited choice. That decreases the chance of them having a vacant property with no money coming in.

In many parts of the country there's a shortage of tenants and that may prompt landlords who wouldn't otherwise consider you to take a risk.

For the landlord the risk is that it can take three months of no rental income but a mortgage still to pay before a tenant who isn't paying the rent can be evicted.

Have a word with a local letting agency or two and get their thoughts on the local situation and market.

draytonled

when I had my IVA MBNA where a bit daft with me along with HFC. it seems to me they are happy to let you struggle and pay them. As with renting I had a chat with our landlady and she was fine with me going bankrupt. she said its a new start and it happend to her in the early 90s.
my employer never knew about me going bankrupt My OR said its up to me if i tell them or not

hope it goes o.k on wednesday

Merry_Gentry

We spoke to various letting agents before even looking at houses. Some of them are quite happy to rent to undischarged bankrupts, and the ones we went with simply asked for a guarantor and one month in advance. It pays to be upfront and honest with them.

Useless_with_wonga

draytonled wrote: »

when I had my IVA MBNA where a bit daft with me along with HFC. it seems to me they are happy to let you struggle and pay them. As with renting I had a chat with our landlady and she was fine with me going bankrupt. she said its a new start and it happend to her in the early 90s.
my employer never knew about me going bankrupt My OR said its up to me if i tell them or not

hope it goes o.k on wednesday

Thankyou no chance of my employer not finding out as i know now before i even embark on this road that i will have an IPA imposed as i will have surplus income. It is my understanding that this comes directly out of your wages or have i misunderstood this?
Just really confused and bloody angry with MBNA at the minute. How can they be so stupid??? I really do think they are calling my bluff well let em and they will be shocked when i proceed to bankruptcy and they get 68p less in the £ than i am currently prepared to give them.

deedee_3

Your employer has nothing to do with an IPA it is set up bt direct debit by you to Clarke Willmott just like a normal bill.

The nil tax code IPA that you get is nothing to o with your employer either. All that happens is HMRC inform your payroll office to apply nil tax. They don't tell them why and the payroll just do it. There are a number of reasons for a nil tax code. You then pay the surplus that you would have paid in tax to guess who

Useless_with_wonga

Thanks that's a weight off. However i guess the payroll office would be smart enough to work out why i was on a nil tax code;) No tax? Really? i don't quite understand that. How long does that last? and sorry to be thick here but where does the money usually paid in tax go? What about NI contributions? What about occupatinal pension? Sorry so many questions don't want to be a nuiscance just i don't really understand it all fully yet.
Best bet would be for them thickos at MBNA to take the 70% i'm offering via IVA but if they don't well so be it.
I just want to throw it all in at the moment sod the lot of em. Thinking about moving into rental and giving up the house in anycase. Can i do that if in an IVA? Issue will be forced if i go down the Bankrupt route in anycase.
I'm just past caring to be honest i don't want anything more to do with credit be it a mortgage or otherwise. Tried to keep up with the "jones" on a single income and conform to expected standards i.e. home ownership etc. I have come to realise that these things are not the important things in my life i need to secure a debt free and cash only existence for the sake of my family and my sanity and i'll do what i have to to get there.

storminbalder

Useless.

Sorry to hear about your predicament. You shouldn't worry too much though. As you can see from the replies above, many of us have gone through the same thing.

Can't help much with the landlord thing. I will never know whether my landlord was informed or not! He's certainly never mentioned it, nor me to him.

Mind you, they do seem to treat me like porcelain though, probably as I've been here 11 1/2 years and never paid late.

You mention giving up you house! Are you aware that the only real advantage of an IVA is the greater chance of keeping your house. In other words, I cannot see any advantage of an IVA for a non homeowner!

To my mind, no house you want to keep quite simply = bankruptcy.

debt_doctor

Hi,

I agree if you have no house or job to protect then an IVA is an expensive waste of time, Br being a far quicker and much cheaper option. I pressume you have a fair bit of equity that no one can afford to purchase ( friend / family member ) otherwise you wouldnt lose your house in BR.

DD

Useless_with_wonga

Thanks for the input guys. Regarding equity well realistically about 10K to 15K ish. The monthly mortgage is a massive drain at just short of £800. I am the only one working hence my thoughts to ditch it all together. We can rent locally for about £450 providing of course they will entertain us with our debt problems. All i can offer them is assurance and proof that i have not defaulted on a monthly outgoing double that of the rent namely our mortgage.
Re benifical interest well only told the outlaws and they as much as they would like to help out are in no position to do so.
I have not and will not tell my parents what a mess we are in although i hate the secrecy it in my opinion would cause far greater problems if they knew and i have too much to deal with as it is without fielding 100 and 1 questions from them.
Regarding my job although i have confirmed that it will not be in jeapordy it would be better for me in the long run if we could avoid BR(BR will prevent me from moving departments as the only other things i would consider doing are vetted which entails a financial/credit check but having said that i am quite happy where i am so not too much of a drama really) but i have the option and will more than likely take it if MBNA don't accept our updated proposal.
I think the big thing is that once we set out along the BR route is the stigma. My work colleagues are not stupid people and they will soon work out what is going on so i suppose i am a little afraid of the embarassment but when all is said and done it is a little price to pay to get us squared away.
I am no longer bothered about being a home owner when we moved into our current house i had considered renting as opposed to buying in order to ease the financial pressure but again we were swayed by keeping up with our peers. I no longer care i just want a simple lifestyle with sufficent funds to feed us all, put a roof over our heads and the ability to enjoy the simple things in life again. Forget the expensive hobbies and foreign holidays just simple living and only buying what we can pay for in cash is where i want to be at.
Anyway i'll keep you posted sorry to rattle on.

fiveyearplan

Useless_with_wonga wrote: »

However i guess the payroll office would be smart enough to work out why i was on a nil tax code;) No tax? Really? i don't quite understand that. How long does that last? It lasts until the new financial year begins or you start another job. and sorry to be thick here but where does the money usually paid in tax go? You pay it to some company (not quite sure who) What about NI contributions? What about occupatinal pension? I'm not sure this is allowed. Sorry so many questions don't want to be a nuiscance just i don't really understand it all fully yet.
Best bet would be for them thickos at MBNA to take the 70% i'm offering via IVA but if they don't well so be it.
I just want to throw it all in at the moment sod the lot of em. Thinking about moving into rental and giving up the house in anycase. Can i do that if in an IVA? Issue will be forced if i go down the Bankrupt route in anycase.
I'm just past caring to be honest i don't want anything more to do with credit be it a mortgage or otherwise. Tried to keep up with the "jones" on a single income and conform to expected standards i.e. home ownership etc. I have come to realise that these things are not the important things in my life i need to secure a debt free and cash only existence for the sake of my family and my sanity and i'll do what i have to to get there.

The main benefit if an IVA is if you have a lot of beneficial interest in your house that you cannot afford to buy back. You will still be on the Individual Insolvency Register and your credit rating will be just as bad as if you were bankrupt.

I don't know what part of the country you live or if getting another job would be easy for you if you are worried of the embarrassment.