Filing for BR - Outgoings less than income?

nesp_2

Hi all,

I was wondering if it's possible to file for bankruptcy even if your SoA shows that your outgoings (debt/bills/etc) are actually less than your income? i.e. you have some disposable income after deductions?

I'm thinking that if I filed for petition, could the court dismiss my petition on the grounds that I could actually afford to repay my debts?

(I have about 12k unsecured debt and a possible house repossession on the horizon).

Thanks in advance!

mypiggybankisempty

Yes it is and I can't see a problem because if your surplus income was excessive then the official receiver would request a monthly repayment contribution which although your bankruptcy would last 1 year your repayments would last 3 years subject to circumstances. The best thing to do and to give people a chance to give you a more concise answer would be to post up your SOA so that we could see what actual figures you are talking about is your surplus say in the tens of pounds or the hundreds. Have you taken advice from any of the debt helplines.

tigerfeet2006

If you can afford the minimum repayments then you are not insolvent. When the house is repossesed and you cannot afford repayments then you will be able to file.

Have you spoken to one of the debt charities about your situation? You must do this as if you file for BR the judge may ask if you have taken professional advice and can delay your petition until you have.

nesp_2

Hi. Thanks for your replies. I have taken advice from the national debtline and they agreed bankruptcy is a viable option, particularly when I am expecting to have the house repossessed. I will try and get an SoA together and post it up in the next day or so.

What I am worried about is if the house is repossessed (I have a joint mortgage and will defninitely end up with a mortgage shortfall) and my bankruptcy petition is denied, I will end up owing my current debts plus the mortgage shortfall (which I know my ex-wife cannot afford to help with).

Arrgh!!

fiveyearplan

IF you go BR then the shortfall would all be your ex's then. Are you behind with your mortgage payments? When/why do you think it will be repossessed?

We will be able to get a better picture once you post your SOA.

nesp_2

Hi. Next month will be the first non-payment so I would assume after a number of non-payments they will repo the house? I am going to give the mortgage company a ring tomorrow and ask them because the ex-wife won't sign a voluntary surrender form I want to get the house reposessed, claim BR and start a fresh. I don't know if the mortgage company will repo quicker if I tell them upfront we won't be making any more payments (and be honest and tell them if it wasn't for the wife we would fill in a voluntary surrender form). the ex-wife can't afford her half of the mortgage payments so I don't know how she expects to keep the house anyway; it's annoying she won't just sign the form!