More Advice Please

worriedsick_3

Sorry to trouble you again but keep going back to the form to fill in for BR and am not sure about a couple of things - the first thing I am not sure about is I took out a contract for a mobile phone a couple of months ago and realise that when I go BR I won't be able to keep up the payments and although I am not in arrears how do I put it down on my BR form - do I put the monthly payments or what will be incurred for the whole 18 months of the contract as they will charge me a cancellation fee - I also tried to set up homebroadband with the same company and have tried to cancel this before it has been activated but they said I have to pay over #400 cancellation fee even though I have not got it - do I put this down on my BR form!!!!! Am so afraid of making any mistakes

Also on the BR form it asks to state what the debts were for and am not sure what to put as there were a number of things I have spent this on over the past 18 months!!!

When I go to the Court on Monday to present my BR papers what is likely to happen? Am I allowed to ask questions? My main worry is am I able to stay in the house? If so for how long? Do I have to pay my mortgage to the OR or the Mortgage company?

Would welcome any advice anybody could offer as I am finding it harder and harder as Monday comes closer!!!!

fiveyearplan

worriedsick wrote: »

Sorry to trouble you again its no trouble! but keep going back to the form to fill in for BR and am not sure about a couple of things - the first thing I am not sure about is I took out a contract for a mobile phone a couple of months ago and realise that when I go BR I won't be able to keep up the payments and although I am not in arrears how do I put it down on my BR form - do I put the monthly payments or what will be incurred for the whole 18 months of the contract as they will charge me a cancellation fee - I also tried to set up homebroadband with the same company and have tried to cancel this before it has been activated but they said I have to pay over #400 cancellation fee even though I have not got it - do I put this down on my BR form!!!!! Am so afraid of making any mistakes If you want to get out of the contract just put them down on your form and I suppose you could either put down the monthly figure or the total - I don't think it matters.

Also on the BR form it asks to state what the debts were for and am not sure what to put as there were a number of things I have spent this on over the past 18 months!!! I don't remember that on the forms

When I go to the Court on Monday to present my BR papers what is likely to happen? Not all courts are the same but if you have an appointment you will need to pay your BR fees in cash, someone will look over your form and either you will see a judge or the person looking over your form will take it to the judge to sign. Am I allowed to ask questions? yes, up to a point. What would you like to ask - we can probably answer it here. My main worry is am I able to stay in the house? They wont' be able to answer question like this or give advice, they can only answer questions relating to the forms. If so for how long? Do I have to pay my mortgage to the OR or the Mortgage company? Do you want to stay in your house, can you afford to, what is the value of your home and what is the outstanding mortgage? If you do want to stay in the house you will have to keep up the payments on the mortgage.

Would welcome any advice anybody could offer as I am finding it harder and harder as Monday comes closer!!!!

You have plenty of time to ask questions. By the time Sunday comes along you should know what to expect down to the last detail.

worriedsick_3

thanks for your reply fiveyearplan - I will put the total cancellation fees on the form now I know I can put it down.

With regards to the form on your list of creditors it asks for the amounts, date occurred and what was the debt for?

I would like to stay in the house if I can because I have nowhere else to go have thought about putting my name down for a housing association flat or council flat but don't know how long it would take - the mortgage outstanding is 91,225.00 and the value of the property at the moment is anything between 65,000 and 80,000

The mortgage payments are 500.00 per month on a fixed mortgage but this is due to go up in September after the fixed rate finishes so not sure where I stand then - I read somewhere on the Bankruptcy site that I maybe able to stay because of the negative equity - another question I have - do I pay the mortgage to the Mortgage Brokers or OR?

No doubt I will have many more questions before Monday so thanks for making me feel I am not a pain asking all these questions

DON79

Hi worriedsick,

if the house does have negative equity, it should be safe and it doesn't sound like you have an excessive mortgage payment either, although it probably doesn't feel a small payment! You pay your mortgage as normal to the broker, not through the OR.

You are not being a pain, keep asking anything that you need help with.

best wishes for monday!

fiveyearplan

The OR has 3 years to make any decision on your property. In this current climate it is unlikely that it will recover enough for the OR to want any equity (unlikely that there will be any equity in that time for the OR to realise). If your mortgage goes up considerably in September and you cannot afford it then any shortfall can go in to your BR unless someone has purchased your beneficial interest.

worriedsick_3

could you please explain what beneficial interest involves as I have read about that many times - does it mean if somebody offers some money for the house? Is it the full amount outstanding that somebody would have to pay for beneficial interest - sorry to sound ignorant but not sure how that works.

When I go BR - my wages will be paid into my bank to pay Direct Debits for Mortgage, Gas, Electric, etc,, will this still be ok

fiveyearplan

Your beneficial interest is £0 since you are in negative equity so friend/family member (or partner if you live with someone) can buy it for £1.00 plus solicitors costs. That way when the value of your property does go up the OR won't have a claim on it. This is normally a good thing to do however in the current climate you could risk that the value won't go up to the amount you owe before the 3 year time limit that would also protect you from any shortfall if you couldn't afford the payments in September.

deedee_3

Worried Sick who do you bank with?

DON79

as long as you are now with a BR friendly bank, it is fine for your wages to go in and your dd's to come out. just make sure you tell the OR which bank account is your post BR account so that he/she can unfreeze it or tell the bank they have no interest in that account.

fiveyearplan

Beneficial interest in your property at the moment is £0 because you are in negative equity. Friend or family could purchase it for £1 plus solicitor's costs. This is usually a good idea but in this current climate if the BI was bought and then you couldn't afford the mortgage when/if it goes up in September the shortfall could not go into your bankruptcy. It might be better to risk that the value of your home won't go up sufficiently in the 3 year time limit for the OR to want his claim.

DON79

snap deedee! we are thinking alike!