Further Bankruptcy Advice Please

purple-pear

Hi Everyone,

Sorry for keeping posting I wouldnt be suprised if I get no replies - but please do. If I link on to other threads do they get picked up? or is it better to post a new thread each time u come up with different worries/queries - in my case everyday.

Decided I need to go BR after lots of thought and reading on here. However, my main problem is my house that I cant afford. I have run up lots of unsecured debt whilst living here just to cover day to day living especially since I had my little girl 16 months ago. When the house gets repossessed there will be a massive shortfall.

What I cant get my head round is what happens between now and the house being repossessed as if I am not payin the mortgage I will be much better off and of course I have stopped paying my debts which I will start shortly to pay minimum thy will accept until I go BR. Want to pay my mum back some money I owe to her from our failed small business and this may be my only oppurtunity to do this. Will the official reciever look at my bank statements from last 6 months etc and query where surplus money has gone prior to repossession/br?

I will be be better off after br due to rent being much less than mortgage and realise I will have to pay in to estate, but going to put realisitc figures on my SOA as I have been more unrealisitc previous to this cutting back on everything trying to kid my self that I can keep the house.

Plus do I need to wait til the house is reposessed before I declare br,has there ever been any cases where the judge will say u cant have house repossessed and have to continue to pay?

Thankyou for all your advice it is so appreciated I am so confused with it all have been changing my mind on what to do almost everyday has anyone else felt like that my family are so fed up with me.

nervousmother

Hi,
If you Link onto other threads it makes that thread appear on top of the list, so it will get read, I do know however that sometimes this board moves so quickly that some get missed anyway. One of those things, no doubt as things get worse with the financial sector this board will be like trying to read the credits on a bad B movie.

You can go BR before the house gets repossesd, it could take them months to do it, whatever way round you do it play safe and dont sign anything.

If the OR found out you had pay your mom back, he may ask her for the money, I dont know how much you owe her but if your going to give her some cash back over next few months do it in cash and small amounts that could be hid within household expenses.

The OR will look at your finances over say a two year period, he will go over them with a fine tooth comb

good luck

Dodger61

Sorry for keeping posting I wouldnt be suprised if I get no replies - but please do. If I link on to other threads do they get picked up? or is it better to post a new thread each time u come up with different worries/queries - in my case everyday.
Yes, start your own thread, or why not keep a diary, many do.

Decided I need to go BR after lots of thought and reading on here. However, my main problem is my house that I cant afford. I have run up lots of unsecured debt whilst living here just to cover day to day living especially since I had my little girl 16 months ago. When the house gets repossessed there will be a massive shortfall.

What I cant get my head round is what happens between now and the house being repossessed as if I am not payin the mortgage I will be much better off and of course I have stopped paying my debts which I will start shortly to pay minimum thy will accept until I go BR. Want to pay my mum back some money I owe to her from our failed small business and this may be my only oppurtunity to do this. Will the official reciever look at my bank statements from last 6 months etc and query where surplus money has gone prior to repossession/br?
If you are going BR, dont pay anything, whats the point. Yes, the OR will probably query any surplus money, and will ask your Mum to pay it back if you declare this to him/her
I will be be better off after br due to rent being much less than mortgage and realise I will have to pay in to estate, but going to put realisitc figures on my SOA as I have been more unrealisitc previous to this cutting back on everything trying to kid my self that I can keep the house. Be as honest as you can.

Plus do I need to wait til the house is reposessed before I declare br,has there ever been any cases where the judge will say u cant have house repossessed and have to continue to pay? No, you can go BR at anytime. Many people still keep their house even when they BR, especially if they are in negative equity and if it not worth the OR selling it.

Thankyou for all your advice it is so appreciated I am so confused with it all have been changing my mind on what to do almost everyday has anyone else felt like that my family are so fed up with me.
This is the hardest decision to make, once made you can move on with your life. Make sure you take advice from the debt charities. Ask any question/s you like.

purple-pear

Ok so the OR will look at my finances leading up to BR? Can thy query money I have spent leading up to the BR then? Just worried as over the last two years I have also done a lot of silly spending on things I shouldn't have bought, eating out etc. So could they say actually if u dont do all these things then u can now afford to keep house slowly repay debts?

Have also read that some people have had work done etc on ther houses prior to br need a bed for a my little girl and wardrobe was going to order from next catalogue my only credit left and include this would this be frowned upon then?

Main problem is the house can manage the payments at present but cant afford it when the rates start to increase again as it will increase by 220 per 1% and its on interest only....due to debt problems wont be able to negotiate a better deal with anyone else and in negative equity.

What can I include for house keeping for 2 adults and one baby?

purple-pear

Plus unsecured debts are now 39,000 and I couldnt swap to interst free cards so couldnt make the repayments as didnt have enough coming in to cover but obviously as I am not makin full payments then I also ahve spare money from this but will need some for br and bond etc for rented.

purple-pear

If I didnt have the house then I could have afforded to apy back debts will thy say u should just get repossessed then and start paying debts? However the shortfall fom house would be approx 50,000 when thy sell and I couldnt fford to pay this 2 but this may not happen for 1 year, 2 years etc who knows. Thats why I want to sort it now and walk away and start again?

nervousmother

I know what you mean about walking away and starting again, im looking at a £116k shortfall :-(

But the fact is if you dont have your house you will have to pay rent somewhere,

If you take on any credit knowing you are going br it will be frowned upon, could even lead to a BRO The person who had work done, took out a loan and then found out after that they were going to be made redundant, im guessing this in not your situation.

Id guess about £300 per month for housekeeping, look at others SOA on the board see if any match your situation..

purple-pear

Obviously OR woont know that I was planning on goin BR so early will prob go BR nearer to summer I was thinking as may take a while for morg company to reposess. So will say to OR plan was to start making payments to creditors which I will do to show this and surely thy cant claim back money from morgage payments I havent paid if I draw it out in cash and pay to my mum do I have to declare this? however I have read people do keep some money for br and bond for rented house etc so will OR be ok with this?

purple-pear

Also i dont have bank statements form last 2 yrs will this be a problem?

nervousmother

If at all possible get rented accommodation before you go BR, you will find it harder after, that way your bond will be sorted. The OR will understand you needed to get somewhere to live.

I had 1 bank statement to send OR, it doesnt matter he will request from the bank.

If you could pay your mom in cash and hide within other expenses less chance of getting cought, Its a difficult one.

tigerfeet2006

Stop paying your mortgage and save that money to get a deposit together for a rented house. The OR will understand this sort of thing.

If you need things then sign up to your local groups on Freecycle https://www.freecycle.org. You express an interest in an item and if chosen you then pick it up for free.

If you are going BR then don't pay creditors, it's throwing good money after bad.

Make sure any money you give to your Mum isn't traceable.

Have you taken advice from any of the debt charities?