Ask a CCCS counsellor a bankruptcy question

System

mindarie wrote: »

I am being chased for debts of 30k and i have been issused with a demand for the full amount or they will start bc proceeding my question is my house is in joint names can they go for our house when the 30 k I owe is in my name

Hi Mindarie and welcome to the forum.

It depends on the available equity in the property; the official receiver would certainly consider your interest in the house.

I’d recommend that you contact us as soon as you can so that we can give full advice on your situation.

Please call our free Helpline on 0800 138 1111. We’re open Monday to Friday 8am - 8pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

I hope this helps.

Kind regards,

Mat

zoebeth

I was declared bankrupt in August of this year and jointly own a property (currently vacant) with my ex partner. I have lived in rented accomodation for two years now. The property is in negative equity so the OR has no interest in the property at present. My ex partner has recently sent me a Consent to Let form requiring my signature as the OR informed him that if he let the property in his name only that they wouldn't have any interest in the income (which would be less than the mortgage payment.)

I'm worried that if I sign that it will class as a change to the mortgage and therefore the shortfall will not be included in my bankruptcy. Could someone please clear this up for me.

Thanks in advance.

System

zoebeth wrote: »

I was declared bankrupt in August of this year and jointly own a property (currently vacant) with my ex partner. I have lived in rented accomodation for two years now. The property is in negative equity so the OR has no interest in the property at present. My ex partner has recently sent me a Consent to Let form requiring my signature as the OR informed him that if he let the property in his name only that they wouldn't have any interest in the income (which would be less than the mortgage payment.)

I'm worried that if I sign that it will class as a change to the mortgage and therefore the shortfall will not be included in my bankruptcy. Could someone please clear this up for me.

Thanks in advance.

Hi Zoebeth and thanks for your post.

I’d take up this issue with the individual Official Receiver who dealt with your bankruptcy.

He or she would be able to give a definitive answer on this.

I hope this helps.

Kind regards,

Mat

zoebeth

Thanks for the reply, Mat.

I did speak to them and also had an advisor from CAB call them on my behalf. On both occasions the answer was diluted and unclear. I think I'll have to seek legal advice on this as I'm worried about the consequences.

System

zoebeth wrote: »

Thanks for the reply, Mat.

I did speak to them and also had an advisor from CAB call them on my behalf. On both occasions the answer was diluted and unclear. I think I'll have to seek legal advice on this as I'm worried about the consequences.

Hi Zoebeth and thanks for your reply.

It could be worth seeking legal help. However, the individual Official Receiver who is handling your case should be able to give the definitive answer as it would be he/she who ruled on it.

I hope this helps.

Kind regards,
Mat

Lleuadwen

I spoke to one of your counsellors on Thursday who went through all my debt issues and the advice was to pursue bankruptcy.

I have been preparing myself emotionally for this eventuality for the past 2 years since taking out a DMP with Payplan, which has been maintained throughout this time.

My main concern is my home. My 1st mortgage with C & G is £92,000 I also have a second mortgage with FirstPlus which has an outstanding balance of £81,000 but my house is worth approximately £90,000, that is if it could be sold.

Incidentally, all my debts, including the mortgage, are in my sole name. I do have a partner but we are financially separate, as he has his own commitments/problems.

The main driver for bankruptcy is the FirstPlus secured loan as the payment is so high, my C & G is interest only at the moment with 9 yrs left on the mortgage.

My questions therefore are: if I do take the BR route would I automatically lose my home as it is not an asset? If I stopped paying FirstPlus could they force repossession if there is no equity whatsoever to be recovered? Is my only option to hand back the keys?

I would be very grateful for clear guidance on this issue.

Thanks

System

Lleuadwen wrote: »

I spoke to one of your counsellors on Thursday who went through all my debt issues and the advice was to pursue bankruptcy.

I have been preparing myself emotionally for this eventuality for the past 2 years since taking out a DMP with Payplan, which has been maintained throughout this time.

My main concern is my home. My 1st mortgage with C & G is £92,000 I also have a second mortgage with FirstPlus which has an outstanding balance of £81,000 but my house is worth approximately £90,000, that is if it could be sold.

Incidentally, all my debts, including the mortgage, are in my sole name. I do have a partner but we are financially separate, as he has his own commitments/problems.

The main driver for bankruptcy is the FirstPlus secured loan as the payment is so high, my C & G is interest only at the moment with 9 yrs left on the mortgage.

My questions therefore are: if I do take the BR route would I automatically lose my home as it is not an asset? If I stopped paying FirstPlus could they force repossession if there is no equity whatsoever to be recovered? Is my only option to hand back the keys?

I would be very grateful for clear guidance on this issue.

Thanks

Hi Lleuadwen and thanks for your post.

I answered the message you sent us.

I hope this helps.

Kind regards,

Mat

oplus

How does the OR deal with beneficial interest when the house was originally purchased by the wife for £28,000 and three years later she married an old fool who is now facing bankruptcy? The house is valued by Zoopla at £114,000 and the outstanding mortgage is £109,300

StepChange_Pavan

oplus wrote: »

How does the OR deal with beneficial interest when the house was originally purchased by the wife for £28,000 and three years later she married an old fool who is now facing bankruptcy? The house is valued by Zoopla at £114,000 and the outstanding mortgage is £109,300

Hi oplus and thanks for your post.

It’s difficult to say how this will be dealt with as it’s quite a complicated area.

If you’ve already gone bankrupt, I’d recommend that you speak with your Official Receiver. The insolvency Service gives you more information about what can happen to your home: http://www.bis.gov.uk/insolvency/personal-insolvency/bankrupts-home

If you’re still considering bankruptcy as an option, I’d recommend that you call our helpline as we have a specialist bankruptcy team that will be able to discuss your situation in more detail.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Hi there,

Many thanks for your question.

The CCCS MoneyAware team are out of the office on Tuesday 16th August, for one day. Please accept our apologies for any delay in replying to your question.

In the meantime you can still receive debt counselling through our online service Debt Remedy (http://debtremedy.cccs.co.uk) 24 hours a day, or call our Helpline on 0800 138 1111 (lines open 8am - 8pm).

Regards,

The CCCS MoneyAware team
http://www.cccs.co.uk
http://www.moneyaware.co.uk