Advice on Bankrupcy!!

sarchet

I am considering going bankrupt, I would be very grateful for help and advice on things you SHOULD KNOW before commiting to this.

• Firstly I am currently living with my partner, who has a mortgage/bills accounts in her name only, with no debt problems/history, so I want to check if this will affect her in any way, i.e would her address be blacklisted etc.
• I have a buy to let property, which currently has tennants in it, if I went bankrupt, would this automatically get re-possesed? as the property would be in negative equity if this happened, would the shortfall/difference owing get included into the bankrupcy?
• If you go bankrupt, do you have to still pay anything back?
• Does bankrupcy last for three years?

Again, would be very gratful for help advice on above questions, or if there is anything I've not mentioned, that I should be aware of before doing this.

fiveyearplan

Hi sarchet and welcome. Your partner would not be affected in any way by your bankruptcy unless you have joint financial obligations.
Your buy to let would probably be taken.
You only pay any money towards creditors if you have over £99 surplus each month. If that is the case you would pay a certain amount for 36 months unless your circumstances change.
Bankruptcy lasts for 12 months.

maxmycardagain

sarchet wrote: »

I am considering going bankrupt, I would be very grateful for help and advice on things you SHOULD KNOW before commiting to this.

• Firstly I am currently living with my partner, who has a mortgage/bills accounts in her name only, with no debt problems/history, so I want to check if this will affect her in any way, i.e would her address be blacklisted etc.

"SHOULDNT"...................

• I have a buy to let property, which currently has tennants in it, if I went bankrupt, would this automatically get re-possesed? as the property would be in negative equity if this happened, would the shortfall/difference owing get included into the bankrupcy?

Your interest will pass to the OR, unless (maybe) you are a pukka lettings business but even grant bovey lost his, shortfalls are included.

• If you go bankrupt, do you have to still pay anything back?

Only out of any surplus - nothing uptp £99 PCM then 70% (inc the £99)

• Does bankrupcy last for three years?

No, 12 months automatic discharge or less with early discharge (6 months for some) though an IPO payment arrangement last 3 years and a BRU (banking restriction) for naughty boys/girls can last 15 years

Again, would be very gratful for help advice on above questions, or if there is anything I've not mentioned, that I should be aware of before doing this.

loads but its time for my tablets

hadenoughnow

.....................

sarchet wrote: »

I am considering going bankrupt, I would be very grateful for help and advice on things you SHOULD KNOW before commiting to this.

• Firstly I am currently living with my partner, who has a mortgage/bills accounts in her name only, with no debt problems/history, so I want to check if this will affect her in any way, i.e would her address be blacklisted etc. The house would be safe, although if you are financially linked, then ti woudl affect her credit file too
• I have a buy to let property, which currently has tennants in it, if I went bankrupt, would this automatically get re-possesed? as the property would be in negative equity if this happened, would the shortfall/difference owing get included into the bankrupcy? As it is not your home, i would have thought that it will get repossesed, although im not 100%, and yes the neg. equity would be included in BR
• If you go bankrupt, do you have to still pay anything back? Certain, things are exempt from BR, student loans, court fines and you may have to pay a IPA depending on surplus of income
• Does bankrupcy last for three years? you are discharged after 1 year, however if there are certain reasons for your BR, i.e Gambling, favouring creditors, taking out loans knowing your BR was looming, you may be subject to a BRU which can last for upto 15 years.
• Make sure you contact thevarious debt helplines before making any decisions, CAB, CCCS, National DEbtline and the likes, im sure more people will offer their advice shortly, and one even has all the phone numbers for these charitie,s "TIGERFEET" i think

Again, would be very gratful for help advice on above questions, or if there is anything I've not mentioned, that I should be aware of before doing this.

sarchet

Thank you all...... for your help on this.

You mentioned would have to pay if have a surplus income over £99 per month, which I don't!!! but as mentioned earlier because I live with my partner (we are not financially linked) and do not want to involve her at all in this, would I have to give details about partners income, etc etc... as this is nothing to do with her....?

One other thing I,ve thought of is bank accounts.......do they all get frozen?

Would I have to have i.e my wages paid onto my partners bank account?

further info will be much appreciated!!

fiveyearplan

You can have your wages paid into partner's account if you wish. The only thing about your partner's income you need to declare is how much they contribute to the household budget. Say your partner earned £2,000 per month her contribution could be £1,500 as she would be expected to have her own things to pay too.

fiveyearplan

Why don't you put up your SOA so we can give you some advice on it.

sarchet

Sorry for being slow!! but what is a SOA??

hadenoughnow

sarchet wrote: »

Sorry for being slow!! but what is a SOA??

SOA= Statement Of Affairs income/expenditure, go to www.makingsenseofcards.com and format it on there, and then paste it one here. its quite easy to do

fiveyearplan

You're not being slow. There is sticky on the front page of the BR forum called "Glossary of bankruptcy terms" or something. Have a look in there if you're not sure of anything.

sarchet

We have just completed the SOA as below, items such as the car is not my assets but my partners, but I do pay some small contribution towards it.

Company I worked at went into liquidation in Oct last year and have since found employment but not full time (22 hours per week currently).

It is confusing, so I have listed my partners mortgage at top, but put my buy to let further down under debt/assests.

Most of the debts are to do with a business which went into liquidation in Oct and I was a director along with my mother, so I kind of inherited the debts!! it is a long story..........

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1 partners asset not mine!
Monthly Income Details
Monthly income after tax................ 470
Partners monthly income after tax....... 1083
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1553
Monthly Expense Details
Mortgage................................ 720 Partners mortgage in her name
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 30
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 15
Mobile phone............................ 90
TV Licence.............................. 12
Satellite/Cable TV...................... 47
Internet Services....................... 10
Groceries etc. ......................... 260
Clothing................................ 20
Petrol/diesel........................... 80
Road tax................................ 35
Car Insurance........................... 42
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 2.6
Pet insurance/vet bills................. 7.5
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 23
Other insurance......................... 26
Presents (birthday, christmas etc)...... 100
Haircuts................................ 228
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2016.1

Assets
Cash.................................... 0
House value (Gross)..................... 115000 this is my buy to let
Shares and bonds........................ 0
Car(s).................................. 1
Other assets............................ 0
Total Assets............................ 115001 What buy to let is prob worth
at the mo!!
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 136000...(291)......0 this is the buy to let house
Hire Purchase (HP) debt ...... 600......(30).......0
Total secured & HP debts...... 136600....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
credit card x 2................5000......50........0
weatherbies finance............15000.....50........0
lloyds tsb.....................11500.....50........0
Total unsecured debts..........31500.....150.......-

Monthly Budget Summary
Total monthly income.................... 1,553
Expenses (including HP & secured debts). 2,016.1
Available for debt repayments........... -463.1
Monthly UNsecured debt repayments....... 150
Amount short for making debt repayments. -613.1
Personal Balance Sheet Summary
Total assets (things you own)........... 115,001
Total HP & Secured debt................. -136,600
Total Unsecured debt.................... -31,500
Net Assets.............................. -52,499
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.