Any advice please

peachyprice

Hi Silou,
If you go BR while still in your house you put the mortgage payments down on your SoA as this is the amount you are saving to put towards your rental deposit and moving costs. Everything else like utitlties CT etc you put as you are living at the time of BR. These can be altered once you move.

silou

Thanks Peachy, I am really confused at the moment! If I put mortgage paymemnts down won't this cause a problem with the OR as I'm not making those payments (and haven't for 4 months now) also I have the money saved for rental deposit etc sitting in my bank a/c, I could transfer it to my partners account but won't this also raise questions with the OR - I obviously don't want to lose that money as we'll need it when we do find a suitable rental.
Also a big part of my reason for BR is the shortfall that there will be once the house is repo'd - but if I haven't even moved out of the house at the time of BR how would I explain that?
Sorry for all the questions but its starting to look like this whole BR thing won't happen in the order I hoped it would (ie move into rental then go BR).
Thank you.

fiveyearplan

You can still put down the mortgage payments even though you aren't paying them because thats what you should be paying. You will be paying something once you get in your rental. As for the rental savings I would take it out of your bank bit by bit if you have time otherwise take it all out. Don't go BR with ANY money in the bank or the OR will most likely take it.

silou

Thank you, thats made things a little clearer in my muddled brain!

silou

Well after many sleepless nights and much pondering I have decided that for the moment I will be staying in my house and not declaring myself bankrupt. There are 2 main reasons for this, the first being the difficulty that we have had finding a property to rent - just to explain so that I don't frighten anyone in a similar situation - we are limited as to what area we can live in because of where my children go to school and the school bus routes, so we are mostly looking at villages where there are few rental properties and those that do come up get snapped up very quickly. In a worse case we could have moved slightly further afield but then the kids would have needed taking to and picking up from school, not ideal when I work full time and partner will hopefully be doing so aswell soon.
The second reason is that as interest rates have dropped my mortgage payments have (at least for the moment) reduced to the extent that renting would no longer be significantly cheaper.
I have also received some advice on the situation with my ex's charging orders that gives me a glimmer of hope that I may not end up paying off all of his debt, so I want to look into this further.
The mortgage and secured loan companies have agreed to be sympathetic about my paying off the arrears (hope they are true to their word!) and I intend to use the money I had saved for deposit and rent in advance to make full and final offers to other creditors.
Who knows if this is the right course of action and I may be back on here at some point in the future if this doesn't work out but at least I can come back to the idea of BR whereas once house is repo'd and BR there would have been no going back.
I just want to thank everyone who has offered advice and support and those who post on here as your posts answered many of my questions. It is really good to know that there are people here offering support when people like me really need it, and I'm sure there will be many needing it over the coming months so keep up the good work. Also to those still considering or going through the BR process, good luck!
Best wishes
S

dalip

Just wanted to say good luck and all the very best. I really do hope you don't need to go bc in the future. I think you are very very wise to leave bc until there is no other way out. It is not a decision to be taken lightly.Dx

fiveyearplan

Hi Silou, If you can possibly avoid BR then thats what you must do - you can always change your mind later if circumstances change. Regarding F&F's start at 10% and be prepared to go up to 30%. I wouldn't go further than 33%. If you need help just shout. Also make sure they will show completely satisfied on your credit report and that they will not sell the debt on to any other parties. Important that you get all that in your offer letter.

silou

Thanks both for your good wishes - you've both helped answer many of my questions along the way and it's the good and honest advice of those on here who have 'walked the walk' that helped me make my decision.
fiveyearplan - I've PM'd you about these F&F's.
S x