Bankruptcy Questions

Sleepy_2

Hi All,

I am thinking of going Bankrupt. My Australian girlfriend isn't so sure.

My problem is that my Mum & Dad lent us £45,000 to fix our house which we were then to sell for a profit. This unfortunately wont happen as there is now no equity in the house.

Sadly, this has split the family up which I deeply regret. I am determined that this money will be repaid in full to my parents one way or another.

Question 1 is how will this affect repaying my parents going through BR? - will the OR just treat them as another Creditor?

Question 2 is my girlfriend just wants to go back to Australia (with me) early in the New Year as she's had enough of all the money worries - is this possibly if we both go bankrupt?

peachyprice

Q1, yes your parent will be treated the same as all your other creditors, especially with such a large loan, the OR will want to know where that amount of money came from.

Q2. Once you're BR and you've had your interview with the OR you can go wherever you please, as long as you give the OR your contact details.

HTH

Sleepy_2

Here is my SOA.....

The Mortgage figure covers 2 Mortgages, ours (£1500) & my Parents old House which is a BTL (£555).

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1550
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2950

Monthly Expense Details
Mortgage................................ 2055
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 116
Electricity............................. 50
Gas..................................... 65
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 22
Mobile phone............................ 12
TV Licence.............................. 11.62
Satellite/Cable TV...................... 20
Internet Services....................... 13
Groceries etc. ......................... 135
Clothing................................ 10
Petrol/diesel........................... 25
Road tax................................ 30
Car Insurance........................... 52
Car maintenance (including MOT)......... 35
Car parking............................. 50
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 11
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 3
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 4
Haircuts................................ 9
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2790.62

Assets
Cash.................................... 0
House value (Gross)..................... 380000 (£270,00 & £110,000)
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 384000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 376402...(2055).....6.5
Total secured debts........... 376402....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Home Shopping Loan.............20151.....335.......11.9
A&L Loan.......................13731.....326.......5.9
RBS Loan.......................21575.....280.......6.9
Sister-in-Law..................4000......0.........0
Parents........................43000.....0.........0
Sky............................1671......33........14.9
Post Office....................2420......55........13.9
RBS CC.........................4276......95........15.9
Halifax CC.....................9214......96........11.9
MBNA CC........................7677......173.......29.9
Total unsecured debts..........127715....1393......-

Monthly Budget Summary
Total monthly income.................... 2,950
Expenses (including secured debts)....... 2,790.62
Available for debt repayments........... 159.38
Monthly UNsecured debt repayments....... 1,393
Surplus(deficit if negative)............ -1,233.62

Personal Balance Sheet Summary
Total assets (things you own)........... 384,000
Total Secured debt...................... -376,402
Total Unsecured debt.................... -127,715
Net Assets.............................. -120,117

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Merry_Gentry

I don't think you'll be allowed to pay for 2 mortgages...

Sleepy_2

Merry_Gentry wrote: »

I don't think you'll be allowed to pay for 2 mortgages...

house 1 where we live is the £1,500 / month and we accept that this is beyond our means and would be happy to rent something a lot cheaper.

house 2 is where my parents lived (renting from me) until they moved out a few months ago. I want to see the back of this house for personal reasons.
I owe about £120,000 and it may be worth just about that. I dont want to rent it to some poor tenant who might get kicked out just because of my stupid mess if I go bankrupt.

Sleepy_2

I feel like I have a million questions to ask.. hope its Ok to ask...

Both my GF and myself do Agency work, my current contract runs out in Jan and has been renewed on a month to month basis for the past 12 months, but only at the 11th hour! - I'm really nervous about having no work and no money by Feb - will the OR be flexible enough each month if we are on an IPA

My girlfriend picks up shifts when they become available, most weeks there are plenty and she can pick up 37.5+ hours but some weeks there are only 30 hours or less, again if we are on an IPA will the OR allow for this variance each week?

Sleepy_2

another quick question...

some of our debts are just in my name, but some are joint. alll our money each month is shared. If the OR looks at just my ingoings and expenses e.g. Mortgage £1500 it looks clearer that Bankruptcy is the option, but my GF doesnt pay "nothing" - even though officially it would appear that way.

do we need to bankrupt at the same time?