To go BR or not??

imcognito

Hello,

I posted on the DFW board a few weeks back.
http://forums.moneysavingexpert.com/showthread.html?t=1145883
Original post there - long one sorry!!!

Since then I have been in contact with Payplan who have been a great help especially the 2nd lady I spoke to this week.

Basically, after speaking to them an IVA is not an option for us as they can only take into account DH's basic salary and not his overtime as it is not gaurenteed.

If you read the post Dh does and will get overtime pretty much every month but even with that we are struggling.

After a long converstion with Payplan this week one option was for me to become bankrupt.

Of the almost 60K debts 27K are in my name.

I do not work and am a SAHM, my only income is child benefit. Dh was obvioulsy paying my debts for me but is becoming increasingly difficult to do so, we are robbing peter to pay paul.

So I have a few questions,

The House: We believe we are in neg equity or at least very little (we bought a year ago before the CC hit!) Payplan suggested I sign over the beneficial interest to my husband (or my mum??) so that I have no interest in the property.

Can I ever get this back?? In 5/6/7/years time?

Do I need to remove myself from mortgage - payplan said not just to let them know now DH is only one working and I am not contibuting.

My Car - is on HP so I presume will be given back and I will be left carless ?? Huge Huge worry with 2 kids and one on way. Dh works 40+ mins away so giving lifts is not really option as unsure of how to get little one to school and soon both to2 different schools.



We currently have a joint account, should I remove myself from this account and leave in just DH's name~?

My own bank account is dormant (very very overdrawn) but the Child benefit is paid in there I presume I should tranfer this over.


Bills household (all are in my name some are in joint) should we move all over to DH's name?? so we dont have to go on card meters etc???


Shold I do all of the above bank accounts signing over house BEFORE i go do the bankruptcy??


Is this our best option, for me t go bankrupt we think will be getting rid of about £750 worth of payments a month.,

I feel such a fool to be in this position, as does DH but we are here and I hope I can get some advice from you guys. We are hoping Dh will not haveto go bankrupt and we can survive once this is over....

Thanks

imcognito

peachyprice

imcognito wrote: »

Hello,

I posted on the DFW board a few weeks back.
http://forums.moneysavingexpert.com/showthread.html?t=1145883
Original post there - long one sorry!!!

Since then I have been in contact with Payplan who have been a great help especially the 2nd lady I spoke to this week.

Basically, after speaking to them an IVA is not an option for us as they can only take into account DH's basic salary and not his overtime as it is not gaurenteed.

If you read the post Dh does and will get overtime pretty much every month but even with that we are struggling.

After a long converstion with Payplan this week one option was for me to become bankrupt.

Of the almost 60K debts 27K are in my name.

I do not work and am a SAHM, my only income is child benefit. Dh was obvioulsy paying my debts for me but is becoming increasingly difficult to do so, we are robbing peter to pay paul.

So I have a few questions,

The House: We believe we are in neg equity or at least very little (we bought a year ago before the CC hit!) Payplan suggested I sign over the beneficial interest to my husband (or my mum??) so that I have no interest in the property. Your husband will be able to buy the BI from the OR for £1 + £211 costs, it's best to wait until you're actually bankrupt just so it's clear you've done nothing to dispose of an asset, and the cost of £211 is a special deal the OR gets for you.

Can I ever get this back?? In 5/6/7/years time? You can buy it back once you're discharged in 12 months

Do I need to remove myself from mortgage - payplan said not just to let them know now DH is only one working and I am not contibuting. You don't need to do anything about the mortgage, just carry on as normal. Your mortgage has nothing to do with beneficial interest

My Car - is on HP so I presume will be given back and I will be left carless ?? Huge Huge worry with 2 kids and one on way. Dh works 40+ mins away so giving lifts is not really option as unsure of how to get little one to school and soon both to2 different schools. That depends on your HP agreement, some have a bankruptcy clause, some don't. As you don't actually own the car until the last payment is made the OR is unlikely to have any interest in it.



We currently have a joint account, should I remove myself from this account and leave in just DH's name~? As long as it's not overdrawn you'll be able to.

My own bank account is dormant (very very overdrawn) but the Child benefit is paid in there I presume I should tranfer this over. Yes, but do this just before you have your name removed from the joint account, otherwise you'll have to fill in forms to have it paid into an account in just your OH's name! Or open an new account with Co-Op


Bills household (all are in my name some are in joint) should we move all over to DH's name?? so we dont have to go on card meters etc??? Are you in arrears with utilities? if not you just carry on as normal


Shold I do all of the above bank accounts signing over house BEFORE i go do the bankruptcy??


Is this our best option, for me t go bankrupt we think will be getting rid of about £750 worth of payments a month., It will be a fresh start for you, and will be easier if it's just you.

I feel such a fool to be in this position, as does DH but we are here and I hope I can get some advice from you guys. We are hoping Dh will not haveto go bankrupt and we can survive once this is over....

Thanks

imcognito

Welcome to the forum, hope this helps some. Anymore questions just ask.

Richard_S

imcognito wrote: »

Hello,

I posted on the DFW board a few weeks back.
http://forums.moneysavingexpert.com/showthread.html?t=1145883
Original post there - long one sorry!!!

Since then I have been in contact with Payplan who have been a great help especially the 2nd lady I spoke to this week.

Basically, after speaking to them an IVA is not an option for us as they can only take into account DH's basic salary and not his overtime as it is not gaurenteed.

If you read the post Dh does and will get overtime pretty much every month but even with that we are struggling.

After a long converstion with Payplan this week one option was for me to become bankrupt.

Of the almost 60K debts 27K are in my name.

I do not work and am a SAHM, my only income is child benefit. Dh was obvioulsy paying my debts for me but is becoming increasingly difficult to do so, we are robbing peter to pay paul.

So I have a few questions,

The House: We believe we are in neg equity or at least very little (we bought a year ago before the CC hit!) Payplan suggested I sign over the beneficial interest to my husband (or my mum??) so that I have no interest in the property. There's no hurry to sign over any B.I. If it was worth signing over then the O.R could, and probably would, negate the transaction. If the house is in negative, or negligible equity, then you can do that at a later date if you decide that bankruptcy is the best way forward.

Can I ever get this back?? In 5/6/7/years time? Yes, a B.I can be transferred.

Do I need to remove myself from mortgage - payplan said not just to let them know now DH is only one working and I am not contibuting. Removing yourself from the mortgage won't make any difference. Any transaction of that nature that's seen as "frustrating creditors" will be reversed, and all transactions relating to property are documented.

My Car - is on HP so I presume will be given back and I will be left carless ?? Huge Huge worry with 2 kids and one on way. Dh works 40+ mins away so giving lifts is not really option as unsure of how to get little one to school and soon both to2 different schools. If you need a car, as opposed to want one for convenience, then there should be no problem in your budget accomodating the cost of an appropriate replacement.



We currently have a joint account, should I remove myself from this account and leave in just DH's name~? If your O.H is not declaring bankruptcy then it would be best if you can seperate your finances, but if there's any borrowing on the account it's unlikely that the bank will allow you remove your name.

My own bank account is dormant (very very overdrawn) but the Child benefit is paid in there I presume I should tranfer this over. Yes, definitely, as a matter of urgency. If you can't open a new basic account have it paid into a friend or relative's account.


Bills household (all are in my name some are in joint) should we move all over to DH's name?? so we dont have to go on card meters etc??? If you're up to date with your utilities it shouldn't make any difference, but probably worth doing if it's not too much trouble.


Shold I do all of the above bank accounts signing over house BEFORE i go do the bankruptcy?? It doesn't really make any difference. The best preparation is to ensure that you have a cash buffer to rely on once you're declared bankrupt; if that's what you ultimately decide. Not in your name I hasten to add.


Is this our best option, for me t go bankrupt we think will be getting rid of about £750 worth of payments a month.,

I feel such a fool to be in this position, as does DH but we are here and I hope I can get some advice from you guys. We are hoping Dh will not haveto go bankrupt and we can survive once this is over....

Thanks

imcognito

Hi imcognito,

Apologies for the brief post. From what you've posted so far, bankruptcy should be relatively painless for you, but keep posting and keep reading other people's diaries that have been in a similar position to you.

Regards

Richard

imcognito

Thanks for your responses.

About the car, I am obviously including that in my debt. So they would let us keep it if DH could carry on paying for it? Its £250 a month plus petrol tax insurance etc so a good £300+ for Dh to pay out.
Would they just tkae it back??? and if I owed money on it it would get taken into the BR??

Or would they help me find a much cheaper car (its fairly new 07) who would help me the finance company get it into Dh's name?? or the OR??

Or noone and I would be carless?

Sorry car is very confusing for us at the moment as is all of it!

Thanks,

imcognito

Richard_S wrote: »

Hi imcognito,

Apologies for the brief post. From what you've posted so far, bankruptcy should be relatively painless for you, but keep posting and keep reading other people's diaries that have been in a similar position to you.

Regards

Richard

Thanks am reading thru posts now... Will keep posting as we make this decision. I think I am set on it, though DH seems a bit wary. But I cant see another way

imcognito

Sorry another question.

When they look at assets.. will they go thru things in my house? like tv and stuff???

Thanks

philnicandamy

Nope...only assets they are interested in are houses/cars of high value/items of high value (large screen tv's etc...paintings etc) normal white goods are safe

imcognito

philnicandamy wrote: »

Nope...only assets they are interested in are houses/cars of high value/items of high value (large screen tv's etc...paintings etc) normal white goods are safe

Thanks, as for the house?? should i get it valued? whilst Id love for it to have made us money in this climate bought a year ago and its a new build so overpriced to start i really think it is negative. I just dont want to lose it they wont take it will they?? in a year or 3 years if i sign over te BI (if needed) to DH??

peachyprice

The car - You need to find out whether it is an HP agreement or a loan. This makes a difference, if it is HP it belongs to the finance company until you have made the last payment, so technically the OR won't be able to take it. If it's a loan the OR can take it.

The house - If you sign over your BI to your OH they won't take it ever, if you don't they have 3 years to take it, but they will only do that if there is any equity, but remeber as it's only you going BR they can only take half the equity. Even if there is equity your OH will be able to pay the OR for this. There's no rush to decide what you want to do with the house, absolutely nothing will happen for the 1st year. You don't need to get it valued, just get a rough idea of how much houses are selling for in your street.

imcognito

Hi again..

I have been reading some other posts on here and I have another question.

It is only me going Bankrupt. Dh cannot afford to keep paying my debts if he wants to get to work and feed us and pay the mortgage etc etc etc..

They wont take his income into account will they? They cant chase him for my debts?? Only the mortgage is in joint names and i plan to if there is any BI sign it over to him.

Also, as yet we have not missed any payments.

I plan in the next few weeks on sorting out changing the So where Child benefit is paid into and making sure all Direct debits are in the joint account and all bills are not in my sole name.

Once all that is done I plan to go for the BR.

My Dh does not have £500 to give me to go bankrupt - he can probably find it somewhere but will mean less food essentials etc. Can I withdraw cash on my Credit card to pay for this? As I have not missed a payment it is still active and I still use it when we are short for other things.

Should I get that done soon and stash it.

Then should I cancel the DD's for my debts (except the car we are still debating that one??)

Thanks and Morning everyone!

peachyprice

Hi again,
No they can't make him pay for your debts. You don't even have to tell them how much he earns. When you fill in the forms you will have to put down what all the household bills are and also your income, and any contribution from anyone else in the household. When you do this you put your income down as £0, there's a bit for benefits where you put the child benefit, then in the box for contribution from others you put the total of all the bills. Thats so they can see how you are going to afford to live after BR.

The OR usually overlooks taking out BR fees from a credit card, so that will be OK. You can take it out now before the !!!!!! hits the fan. Or you can use the money from when you stop paying your DD's for your debts, if that will be enough?

Change the DD's to the joint account before you have your name taken off, some companies get shirty if you try to set up DD's and SO's from account that's not in your name.

HTH