HELP!!!!!!!! Partner £100k+ in debt

dollparts

So_Sad_Angel wrote: »

Thanks Jay thats my understanding also.

The OR will not allow payments to be made on any debt pre BR date....as it is seen as favouring a creditor.

Angex

Hi, I keep seeing this comment-can someone explain exactly what it means please?

When you say 'pre BR' is there a specified amount of time before you plan to go BR? or something else?

Tinytim

dollparts wrote: »

Hi, I keep seeing this comment-can someone explain exactly what it means please?

When you say 'pre BR' is there a specified amount of time before you plan to go BR? or something else?

Hi Ange, It means choosing to favour one creditor over another. There appears to be no strict time limit, and it is generally taken as being from the date you knew (or should have known) that you are insolvent.

In practice, the OR is unlikely to have an issue with you paying the electric bill ahead of the gas bill because they were more pushy - certainly in my case, I continued to pay full payments on one loan whilst making token payments on some others - the reason being that the loan was with the same institution as my business debt, and we were desperately trying to save the business and didn't want to give them an excuse to pull the plug. The OR seemed to think this was understandable in the circumstances.

Where they do seem to have a problem is where a lump sum repayment is made to a debt (especially a family debt) when the lump sum should have been apportioned between all creditors. You are also allowed to prefer priority debts - e.g. if you have council tax arrears, it would be quite in order to clear those before making any payment to say a credit card.

l.p.s.c - As others have said it is essential to get proper advice from the organisations suggested. I suspect that there will be no grey area, and the decision will point either on way or the other. It is likely to hinge on what will happen with respect to your partners mum and perhaps his friend. If he chooses bankruptcy, then he will be unable to pay his mum or his friend anything - the debts will be incuded in the BR. Quite a few people think they can continue to make "secret" payments in such circumstances, but the minimum payments at 2.5% of £30,000 of credit card debt is £750. If he really does have a surplus of £750 per month, it is likely that the OR will want 70% (I think) of it.

As far as self cert mortgages are concerned, they are almost non-existent now, with only a handfull of lenders still offering options. Even with a 25% deposit, you would be looking at rates in excess of 7.5%, and to get a rate of less than 6% you would need a 35% deposit. Most lenders now ask for proof of self employment, and also proof that the applicant is meeting his obligations as far as submitting tax returns are concerned. In most cases, they will still want to see copies of the SA302 from HMRC (with the figures blanked out) to prove that self employment is genuine. There is only one lender who still offers self cert to the employed.