Rent before BR and stop paying mortgage

dickoa

Hi there just wondering is it worth renting before going BR we currently have a mortgage house and the plan was to not pay the mortgage for as long as poss to save up some money. Is this a good idea? Should we rent before BR as if we say rented somewhere for 800 and the OR said that was too much do they do that? Can they tell you how much too pay rent? Also what are the next stages i have our SOA completed should i look hat getting the BR forms started or make appointment? Many Thanks

dalip

Morn
Quite a few on here have gone into rented before bc. The OR can not tell you where to live but he will know roughly what other houses are renting for in your area. If he feels it is too expensive he will allow a certain amount and you will have to find the surplus yourself,but this is rare as far as i know.


If you go to www.insolvency.gov.uk you need form 6.28 for bc. Either fill it in on-line or by hand. I would ring your local court tomorrow and see what system they operate.Then if it's appointments,make one.There can be a few wks delay so be prepared to wait.D

fiveyearplan

Hi dickoa. You could phone the court on Tuesday - tomorrow. Do you know which court it is? If not look on the insolvency website because not all courts do bankruptcy. You could either do your forms online or print them off and write them in - I chose to print and write mine. Thats it!

As for renting you will be fine paying whatever rent is 'normal' for your area. In other words probably best not to be looking at the houses with cinema and pool - that might be frowned upon. Look for something that is adequate for the size of household you have.

If you're definitely not going to stay in your house then you may as well stop paying the mortgage. You may need a sizable deposit for your rented property.

deedee_3

I would definatly rent before going bankrupt, although when they credit check you it may be bad it will be easier than with the bankruptcy on there.

Links to online forms

Completing the bankruptcy petition and Statement of Affairs.

Complete the forms online (registration required)

Debtors Bankruptcy Petition (form 6.27) - pdf version / MS Word version

Debtor's Bankruptcy Petition 6.27 Example (Thanks to NE Derbyshire CAB)

Statement of Affairs (Debtor's Petition) (form 6.28): pdf version / MS Word version

Statement of Affairs (Debtors Petition) Guidance Notes: pdf version / MS Word version

Statement of Affairs (Debtor’s Petition) 6.28 Example (Thanks to NE Derbyshire CAB)

from Ferm's sticky at the top of the board.

dalip

Is that a sticky? Dee if not it should be. Well done.Dx

dickoa

See the thing is at the Mo my partners mum has got a loan for her from years ago and we would ideally like to pay that off before we go BR. As i dont thing that the OR would allow a payment for a loan not in her name on the SOA anyone know anything about this. So the plan was to save up the mortage money and the money i have been paying to crediators to pay her off would the OR look bad on this or is this ok. Is there anyway of finding average rent for your area i put rent down as £800 a month this was just because i saw a nice house for that is there any guidelines thanks for the help

fiveyearplan

I would keep quiet about the loan to partner's mum. The OR will look down on this and has the right to demand it back. Of course you and partner will feel a moral obligation to pay her back but I would do so on the QT!

Don't worry about the average rent. How much is your mortgage, if the rent is less then you'll be okay.

skylight

no no no no.

The OR will look badly at this. Your MIL would be a preferred creditor and you are not allowed to place preference over any one - relative or not. The OR is in his rights after BR to contact MIL and ask for it all back...

The only way is to pay her back out of your surplus. You are right that the OR will not allow this "loan" to be paid - all debts must be included in BR. But we all seem to have more of a moral obligation to pay relatives than banks.

If you do not pay the mortgage then you will need to save this for renting. Worse case scenario appears to be here that some LL want a 6 month deposit upfront... costly. Paying your MIL back with it will mean no money for renting and the OR will want to know what you did with it.

dickoa

I think that cause i got alot of OT at the Mo i could save up enough for both the loan and the rent. The mortgages at the mo are 1022 including payments towards arrears usually 822 however this is interest only the rent i put down was 800 is this ok the thing is its a loan her mum got out with Northern rock in her name for my partner. again i really appricate(bad spelling) the help thanks very much

skylight

Go to rightmove.co.uk and the rentals section. It should give you average prices for rents in your area, based on number of bedrooms (over actual location). It will give you and idea of whats available and the prices.

And if you can save enough for rents and MIL, then do not be obvious about it and save it in the bank and do a cheque or transfer.... thats too traceable.

fiveyearplan

Please don't worry about the rent. £800 should be fine if thats what things go for in your area. Just look in the newspaper or online at estate agents and see. If most of the properties of the size you need are going for £400 then there may be a problem but if they are going for say £700+ you should be okay. Really shouldn't be a problem. If you want to pm me the area you live in I'll look it up for you.

I can't remember - is your partner going BR too?