Is Bankrupcy our savior?

fiveyearplan

I would get some advice on the life assurance as the OR will most likely take it or make you pay to get it back. If thats the case it may not be worth paying the premiums.

Doomboy

Hi guys
Heres my revised SOA for outgoings
council tax£23
Gas/electric£150
tv£12
Car insurance£26
phone 60
housekeep£450
car loan£200
petrol£80
water£30
car tax£15
car maintanance£17
haircuts£25
clothes£50
dental£20
do i put holiday ?

Doomboy

Hi guys....has anyone used their morgage insurance money to save for BR?....a bit worried cause we are and it may be illegal...not sure...anyone?

Lightattheend

If you think your home is going to be repossessed it might be worth registering for council housing. Not sure how it works in your area but I registered and was classed as General needs until I got the repossession order on the house and it then became Priority Extra. My local council messed things up a little but I did eventually get a house and then voluntarily surrendered the house I had the mortgage on (to save them adding court fees on if they went back to court to repossess).

Doomboy

Thanks Light.....Yes we are going to register with the housing people....so hopefully when the house is repoed the shotfall will be included in the BR.
Would we have to give the morgage and secured loan our new adress and phone number?
We also have a car on HP which has something like £2500 left on it to pay...it is used alot for our son who has ASD....would that be taken?

nickc25

Doomboy wrote: »

Thanks Light.....Yes we are going to register with the housing people....so hopefully when the house is repoed the shotfall will be included in the BR.
Would we have to give the morgage and secured loan our new adress and phone number?
We also have a car on HP which has something like £2500 left on it to pay...it is used alot for our son who has ASD....would that be taken?

Yep car would be taken as an asset depending on its value I think. If the car is linked to HP I think the HP company will take it back, sell the car and then take it off the balance, the balance would then form part of the BR.

I would advise to move as quickly as possible with the bankruptcy, make an appointment to get it all done. I think you will be given a while to stay in the house and find somewhere else, it is not as if you get chucked out the day of the BR...

It is basically paper and bricks, your family is more important. The stress and worrying has a massive inpact on your health, relationship and family life. I know it is hard, my situation was different but I am totally glad I did it, all those debts were just wiped and all the worries gone in an instant.

It has been two months since you originally posted here and probably longer since you first thought about bankruptcy, try to do it as soon as possible and then all this will be over, trust me when I say, the worries just disappear because you know that the debts are gone.

You will be given a certain amount of time to find somewhere to live, the council will put you as a priority, if you have to live in a "bad area" then so be it, better than nothing? Maybe try someone in your family to see if they could put you up too? The council should look at your sons condition and things like schools, but if there is no housing available then that is where they have to look a little further out.

Because of the DLA you should be able to get help with getting around for your son, if that is taxis or whatever call them to see. I have a motability car but I think there has to be a minimum age for it, but have a look into it all.

The most important thing is to take action. From your outgoings and income, you have enough to move forward because the debts will be gone. You may have to pay some back, you may not. I didnt have to pay back a penny, each case is different though. If your income is similar to your outgoings without the debts, then more than likely you will not have to pay anything back, but if you get a job and more income, that is when you would be asked for contributions I think, I am not sure on that part though. But just move on and get it done asap, you are in limbo at the moment and the best thing is to just do it, you will not believe how much of a relief it is to not have any debts anymore. 4 years down the line all I have as outgoings now are half the mortgage, and a few bills.

Doomboy

Thanks Nickc25...your words are comforting....its been taking long time cause benefits have been constantly changing and the BR forms have needed changing....but I hear what u are saying....and its all going ahead Vsoon...
We are having an estate agent to look at the property to see if we can quick sell it....is this worth doing?....there is no equity in the house

nickc25

Doomboy wrote: »

Thanks Nickc25...your words are comforting....its been taking long time cause benefits have been constantly changing and the BR forms have needed changing....but I hear what u are saying....and its all going ahead Vsoon...
We are having an estate agent to look at the property to see if we can quick sell it....is this worth doing?....there is no equity in the house

I wouldnt entertain selling the house, it will be sold for you anyway (well for the mortgage company) probably by auction. Maybe the estate agent has advised you to sell? One reason for that will be ££££ commission!! They do not care about your situation as long as they could pursuade you to sell it but it will just be for the estate agents benefit and not yours to be honest. Unless there is equity in it but if it is negative there is no point, it would probably take months to sell (maybe over a year?!) in the current climate which would hold you up even longer.

My BR was quite straightforward because I lived with my parents and my debts were about £70k just on loans, credit cards and car so that was the only property involved and the HP company owned that anyway. So I am not qualified to advise you on the house but from what I have learnt in the past it is not worth selling the house, just let it get taken if there is no way of keeping it and find somewhere to live. They are human too, they realise that you have children and need time to find somewhere to live so you will have an agreed timescale on which to find somewhere to live.

Someone correct me if I am wrong please though.

Doomboy

thanks Nick...ofcourse.....your right...its a waste of time selling.
I think what we are going to do is just quick as we can...find a rented place and up and go. What would we say to the morgage and secured loan people?
We have not as yet gone BR...but its in the process of finalising the forms....do we tell them we are going bankrupt and do we give them our new adress?

Doomboy

Hi Guys+...
My wife and I are both going BR...I understand we cant do it jointly....we are both on benefits...but we get DLA for our son do we put this on the forms?...if so whos forms would it be put on?....very confused!!!!!