Bankruptcy/assets/beneficail interest/early discharge

Shiku_2

Thanks for the advice peachyprice...... but what would be the benefit of disposing of a property which has no equity in it? I thought they would only do this if there was any equity in order to repay creditors?

peachyprice

Although it's in negative equity now the OR can hold onto a property that isn't your home indefinitely and you have no right to buy the BI and it will not be transferred back to you 3 years after discharge. Therefore the OR can wait as long as he likes for prices to rise before selling it. So you may not lose it immediatley, you will eventually when prices increase.

With your home the OR only has a maximum of 3 years to realise the asset, after which it will automatically be transferred back to you.

dvs

Shiku wrote: »

Thanks DVS..... I want to file for BR but don't want it to be a case of 'out of the frying pan and into the fire!' I did inflate it by alot, but thatnx for the advice regarding rental income I could argue that should I have to?? How long have u been BR DVS? Do they also look into ur bank account to see how/what you have been spending on?

I went BR in December 2008. I was asked to send 12 months worth of bank and credit card statements. I don't know if they ever went through them thoroughly. During my interview, the OR checked my SOA and asked me about each account, why I took the account out, what I spent it on, any major purchases etc. I hadn't opened any new accounts in the previous few years.

If you need to go bankrupt, you need to do it. Just make sure you've had advice and you know the consequences. I thought about BR on and off over for about 3 years and constantly considered it for about a year before I actually did it. During this time I got into more debt just to keep paying my debts. My only regret is that I didn't do it sooner.

It's unlikely that you'll get a BRU but even if you do, it's not the end of the world.

Shiku_2

Thank u so so much dvs, all ur advice is much appreciated and it is great to hear from someone who has already gone through what I'm about to go through, and has come out of it so positive, just like u I have been contemplating for many years and even had my paperwork filled out but the only reason it never happened was because I went to the Royal Courts of Justice, and I could only file at Romford County Court, I took this as a sign and just left it for a couple of years but now i know i cannot manage at all without dragging my family into debt as well!!

Once again DVS thanks so much, I've decided to go ahead with it.... did u speak to someone like CAB before u went ahead with the bankruptcy?

tigerfeet2006

Shiku just about every one on here has taken professional advice from the debt charities. We always recomend it and the court may delay your petition if you haven't taken the right advice.

dvs

Shiku wrote: »

Once again DVS thanks so much, I've decided to go ahead with it.... did u speak to someone like CAB before u went ahead with the bankruptcy?

I did seek advice from the local CAB beforehand and you should get advice too. When I saw the judge, he asked if I had sought advice and whether I understood the consequences. He also asked my name (but that was easy!) Just 10 seconds later, I was declared bankrupt. Whilst I feel a little deflated afterwards, it was definitely the right thing for me to do. I couldn't go on as I was.