amateur bankrupt query part 2 pls!

dollparts

Hi all, before I start I just wanted to say this forum/site has been an absolute godsend and there are some really great people on here posting and advising which has helped me out more than I care to imagine this weekend-so THANKS VERY MUCH!

And now for my query/ies.

I have a few questions that I can't seem to fathom-can anyone help? tbh, I think I've just read too much and have tied myself in knots this past few days.

I am in arrears with mortgage approx 3800. House is on market but in Negative equity. soon 2b ex is on mortgage but doesn't want to know. Should I wait for sale before bankruptcy or just file and let NR repossess?
NB am in middle of SOA and will post when finished.

Depending on answer to above will I have to move out straightaway if they RP? I have a five year old. Would it be better for us to rent a property now?

If/when I file the BR what will happen to my tax credits/CB payments? I thought you could only get these paid through the bank nowadays.

Sorry if these questions seem obvious, it's been a real minefield of fact finding and I need some help!

nik_k

If the court grants an Outright Possession Order, this would mean that you won't have the right to live in your home after the date given in the order. This is usually 28 days after the court hearing. If you think you need more time, tell the judge at the hearing. You may be given more time if you are in a difficult situation, for example, you are ill or you have young children, though any delay is unlikely to be for more than 56 days.

As for the CTC/WTC/CB, you can still open a basic bank account, which would allow these payments to be paid into a bank account

dollparts

Ok, so it may be an idea to start renting before I file to minimise the disruption for little one? Parents will be helping with rent until I can get LHA application started which I don't think I can do before my name is off mortgage.

skylight

I would look at moving before. Mainly due to the credit check that letting agencies do! Your credit file is bad now, its going to be crap later!!! I would also tell them about the pending BR as some landlords have anti-BR clauses as they are blinked pretend-landlords who do not understand a real business proposal and you would want a professional anyway!

Would you need help from LHA to pay the rent though?? It would be tricky then to rent AND have the property before its sold (not repo'd) and get LHA (as technically you have a home under their rules).

dollparts

Sklylight, that's the issue that has me confused! I would be entitled to LHA save for the fact I own a property. EXhb is on JSA and hasn't paid anything towards mortgage or maintenance since easter which is what has dropped me in it.

I think Maw and Paw will be able to help with rent until the house has gone.

Oh my this just gets more and more complicated

dollparts

and should I hold out until property is sold or just let them repo?

skylight

Well, dont worry about exHB, Just ensure that you pass on all his current contact details to the lenders when they ask so they know who to chase when you have gone BR.

And if he is on JSA, he should be paying you £5 per week direct from his benefit for CSA (unless he has the child for one night per week or more). Not much, but not the point!

skylight

dollparts wrote: »

and should I hold out until property is sold or just let them repo?

The place will have to be repo'd before they can sell it (or do you mean you are trying to sell it, cos you wont be able to). There is a voluntary repo or a formal one - neither is any different to the other but the main thing is NEVER SIGN ANYTHING! This is because some shafty lenders add clauses that would still make you liable for the debts Although this only really works after you have gone BR as the clauses you sign after BR mean its a new debt and you are therefore liable. Before BR it shouldn't make much of a difference to you but don't sign anyway as its potential hassle you can do without.

dollparts

He has her for 2 nights a week so that's a non starter but thanks all the same. So that just leaves me with the mortgage 'ishoo'.

Can I ask another dumb question?

skylight

No you cannot ask a dumb question - there is nothing dumb about the seriousness and concern over BR. Now, consider yourself told off and ask away!

Tinytim

Dollparts, The first thing to say is that before you make any firm decisions, speak to CCCS and/or National Debtline, and/or CAB. They will be able to explain your options and point out the advantages and flaws in each course of action.

However, if it was me, I would be tempted to stay in the house until NR repossess and delay declaring BR until after that has happened. If you are paying money towards the mortgage, and it is a lost cause, stop. The money can be saved towards a rental deposit when repossession actually happens. This might lessen the amount you need from your parents to rent, and (depending on their generosity) may mean they have some in reserve if it is needed soon after BR is declared.

If you wait to be repossesed, then you wont fall foul of the LHA rules, and as you soon to be ex's failure to pay is the cause, I can't see you being classed as intentional homeless. At the point od repossession you could go into rented, sort out the LHA, and then file for BR.

As far as the credit check is concerned, the BR is likely to be a greater hurdle than the repossession. Most letting agents can only carry out a very limited credit search which details voters roll info, CCJ's and bankruptcies. It does not show payment histories, defaults, or, to the best of my belief, repossessions. This information is only available to actual lenders.

As far as tax credits and CHB is concerned, a basic account from Co-op or Barclays will be more than sufficient. Both will accept change of bank details over the telephone and will action these reasonably quickly.

Whatever you decide, good luck