Help needed!!!

foxy47

IVA now out of the question. Have defo decided BR route and will contact my local county court this week to book a date to submit my paperwork. Need advise with the following:

1. should I continue paying the mortgage alongside all priority debts.
2. should I make token payments to my creditors to keep the wolf's from my door and phone?
3. will I be able to keep my car. it's worth about 2.5k. I am a 'key worker' and need it for my job which I can prove as (it's highlighted in my contract). I do alot of mileage and need a reliable car -for quick getaways. It wouldn't be logical to buy an older, delapidated, one that might be costlier to run.
4. re my home, how long before I'm asked to leave. Current equity is confirmed with bank as being approx 22k. i only own 50%. separated from husband. No one can by my BI? both my children are students over 18 but still dependant on me.
5. will the OR allow me to save money to rent somewhere? Will I need 6 months rent in advance. I don't have a guarantor. What I do have is a great work record. Good credit record up till now. Surely this should go in my favour.
6. Would I be eligible for a key worker rental whilst BR?

many thanks from a deeply troubled woman. Sorry for the long thread.

Holes_in_my_pocket

I cant answer quwestions regarding mortage but sure someone will .

If you are going bankrupt STOP paying all creditors you dont get a pat on back for trying to pay a bit.

I would imagine you would be able to keep the car though i believe the valve is round £2000 so you may have to offer a bit or just value your car at £2000 and see if slips through the net,

Sorry cant help any further

foxy47

thanks for your reply. I had the insight to change to a coop bank acct so i don't owe any money on this new acct. Will this neccessarilly be frozen once i am BR. It's a basic bank account without an od?
thanks
Foxy

Holes_in_my_pocket

I opened my co op account prior to bankrutcy and very happy with the co op. Tell them you are goig bankrupt when you open account the OR doesnt freeze accounts its the banks that do that but the co op wont freeze you account but you need permission from OR to use it . I phoned the OR day of bankrutcy and i was given permission and they fax the co op

foxy47

thanks for that. if anyone can assist with the rest of my questions i will be very grateful
thanx
foxy

Holes_in_my_pocket

weekends are always quiet on here but you will get advice

Tinytim

Hi Foxy,

As far as the mortgage is concerned, if you have equity in your property then the OR will want it. If there really is no one able to buy your BI, then unfortunately you will have to give up your home one way or another. The choice is between stopping the mortgage now, and being reposeessed in 6-9 months, or keep paying the mortgage and have the OR ask you to leave in a year or so. My preference would be to stop paying the mortgage and use the money to save for a deposit, thus having a fresh start as soon as possible. There are those who would advocate stopping the mortgage and getting into rented accomodation before declaring BR, and in some cases there could be merit in doing this.

As far as your 18+'s are concerned, legally they are considered as non-dependents, despite what the reality might be. It may be that they have to reconsider what they are entitled to in the way of grants/loans in light of your change in circumstances, but I know almost nothing about student loans etc.

Unfortunately, the OR will not allow any leeway on your car due to you being a key worker, and personally I would be very careful in playing that card. The term itself has been a creation of the current government, and there are many in government employ who absolutely despise its use. I had a conversation with a fairly senior local government officer who was livid at the fact that teachers, for instance were considered to do a more valuable job than many who he employed. It would be terrible if you ended up with an OR who felt the same.

As far as Key Worker rent is concerned, you will need to talk to your local authority/ housing association. Sometime your local Homebuy zone agent will help (www.homebuy.co.uk) although they are more concerned with affordable home purchase schemes than renting. I do not whether special schemes exist in the rental sector; in the purchase sector most schemes which were limited to key workers are now open to all on a low income.

I assume that you have taken advice, but if not it is essential to talk to CCCS, National debtline or CAB before finally making a decision.

mna78

Just to add a point about the car, the £2k limit is only a guide line.

I got to keep my car that was worth a fair bit more (& know others on here have in the past) than this as without it would make it difficult to get to work (live in a village no public transport). The OR should look at the overall picture and make a judgement call on it.

Maybe I was lucky with our OR, I certainly didn't think we'd keep the car, but they said, they have to take storage costs, auctioneer fees etc... into account to see if it was worth their while.

peachyprice

foxy47 wrote: »

IVA now out of the question. Have defo decided BR route and will contact my local county court this week to book a date to submit my paperwork. Need advise with the following:

1. should I continue paying the mortgage alongside all priority debts. If you want to keep the house, yes
2. should I make token payments to my creditors to keep the wolf's from my door and phone? No point, just tell them your're seeking help fron the debt charities
3. will I be able to keep my car. it's worth about 2.5k. I am a 'key worker' and need it for my job which I can prove as (it's highlighted in my contract). I do alot of mileage and need a reliable car -for quick getaways. It wouldn't be logical to buy an older, delapidated, one that might be costlier to run. Most likely yes, OR's can be felixible on the limit, and the majority are if you are working,
4. re my home, how long before I'm asked to leave. Current equity is confirmed with bank as being approx 22k. i only own 50%. separated from husband. No one can by my BI? both my children are students over 18 but still dependant on me. You would normally have 1 year if you have dependents.
5. will the OR allow me to save money to rent somewhere? Will I need 6 months rent in advance. I don't have a guarantor. What I do have is a great work record. Good credit record up till now. Surely this should go in my favour. No, once the OR has told you if/ when they are going to sel the house you can stop paying the mortgage to save for rental deposit.
6. Would I be eligible for a key worker rental whilst BR? Sorry I don't know.

many thanks from a deeply troubled woman. Sorry for the long thread.

Hope that helps some.