My house

dickoa

Hey there second post in two days i think that BR is almost definate and i have a few more questions one of which is i have £16,000 secured loan a £15,000 charging order and £130,000 given these debts there is no equity in my property i want to get rid of the lot house debt i have other debts to inculded in BR totalling £15,000. Should i move out stop paying my creditors and go into rented dont mind doing this just want to make sure im completely debt free will all these go. My other issue is i have shares in the company i work for and if i take them out now i will get £2000 which i could do with to setup my new life will the OR have anything to say about this i would also use this to go towards my BR fees for myself and my partner. I have already asked the question before but does overtime get included in your SOA as its not definate and would my bonus which i usually get be taken same again its not definate. See my long term plan is to move abroad and whilst in BR i want to try and save as much as poss to do so. Also god theres alot of also's going in, should i set a new bank accounnt etc prior to going BR how do people approach it do they plan ahead for BR and save money or what


Thanks Alot for your help
This should help secure a better debt free future for the family and a stress free one for me

skylight

If you do a voluntary repossession, then yes, all associated debts will be included in your BR.

I personally would take out the shares ASAP. Renting somewhere after BR can be more difficult so its better to set up a home now. The shares will pay for this and your fees - therefore would be acceptable to the OR, afterall you have not furthered your debt. Depending on how soon in the future you plan on BR, then I would stop paying all creditors when you move out.

Overtime is possibly included, but it will be averaged out over the year to give a average earnings. This also depends on the OR and how frequent overtime is available to you. It is not advisable to do not O/T before BR, and then masses afterwards to make some extra money. The OR is handed all info from Inland Revenue and will know about it. In BR, you are also legally bound to tell the OR of all changes in circumstances so you have to tell him about your O/T and bonus. he may or may not want them depending on the amount etc. Whilst BR, it is not the done thing to save loads of money. If you have loads of savings then you are able to pay an IPA.And you will not be able to get a savings account anyway until discharge (they are just not offered).

I would also set up a basic bank account before BR and get everything running smoothly before the big day.

Have you spoken to CCCS or Payplan yet? You will have to have taken professional advice, the judge can turn down your application if you haven't.

dickoa

I have spoken to CCCS and debt companies i know that you cant have savings accounts and i understand that when you say voluntary repossession what does that mean not quite sure on what it is also if you dont get granted with an IPA and your discharged after a year can in say a year and halfs time have to pay a IPA. I.e. cant afford IPA for first year then get pay rise and can afford one what would happen
many thanks

skylight

An IPA can only be implemented during your bankruptcy. Once you are discharged then an IPA cannot be started.

If an IPA is started during your bankruptcy, then the amounts can change (up or down) depending on your changes in circumstances.

In your post did you mean you didn't understand about voluntary repossession??

dickoa

Yes i dont understand voluntary repossession doesnt the house automatically get taken

Thanks again

skylight

Yes and no.....

The house will eventually be taken, after some time of non-payments and after they have taken you to court for payment and again for repossession - there is little that is "automatic" to it.

If you are going BR, then its best to do a voluntary repo when you are ready. Call your bank and tell them that is what you want to do (when you are ready!) and they will let you know what happens. NEVER SIGN ANYTHING to do with repossession. There are clauses hidden that makes BR messy and is not worth it. Some banks accept voluntary, and some will insist on going the court route - which is daft as it costs them money they do not re-coup as its included in BR.

Its best not to just move out and ignore the property. This can drag out BR and its stressful enough as it is - you need to keep it simple for your own sake (as simple as it gets!!! LOL)

fiveyearplan

dickoa wrote: »

Hey there second post in two days i think that BR is almost definate and i have a few more questions one of which is i have £16,000 secured loan a £15,000 charging order and £130,000 given these debts there is no equity in my property i want to get rid of the lot house debt i have other debts to inculded in BR totalling £15,000. Should i move out stop paying my creditors and go into rented dont mind doing this just want to make sure im completely debt free will all these go. It would seem the best thing to do if your aim is to get rid of all the debt. If you wanted to stay in the house then I'm sure you wouldn't get rid of the secured debt.

My other issue is i have shares in the company i work for and if i take them out now i will get £2000 which i could do with to setup my new life will the OR have anything to say about this i would also use this to go towards my BR fees for myself and my partner. That would seem logical, if the OR asks where the money went you can say that 1,000 of it went on BR fees and the other 1,000 on living expenses (rent & deposit etc). If ou didn't take it out now and use it I'm not sure whether the OR has the right to take it so you may as well use it for yourself instead of giving it to the OR.

I have already asked the question before but does overtime get included in your SOA as its not definate and would my bonus which i usually get be taken same again its not definate. How regular is your overtime?

See my long term plan is to move abroad and whilst in BR i want to try and save as much as poss to do so. Also god theres alot of also's going in, should i set a new bank accounnt etc prior to going BR how do people approach it do they plan ahead for BR and save money or what I would open a Coop account before BR and when you do go BR let your OR know that it is a cashminder account that you set up for post bankruptcy. If you can't open a Coop, then try Barclays. Personally I think the Coop is a better account because it comes with a debit card whereas the Barclays only has an ATM card.


Thanks Alot for your help
This should help secure a better debt free future for the family and a stress free one for me

I'm sure you'll have loads more questions - welcome to the board!

skylight

One thing I haven't asked though - are you and your partner planning on BR?? Or just you? If just you, then is the property in your name or both?? And any joint debts?

dickoa

Both planning on BR as its in both our names and so are secured loans

dickoa

the overtime is regular at the mo but in the new year it will go away as the trainees we have will be passed out

skylight

dickoa wrote: »

Both planning on BR as its in both our names and so are secured loans

Cool! Should have asked to start with, as it makes a slight difference!!! (as in, if only one going BR, then all joint debts fall to the other, so repo is not so simple!)

Have you read National Debtline/CCCS/Payplans websites? There is loads of info there as well. I would suggest taking time to absorb it all, it does take a while for it all to sink in!