Partner on soa and co-op question

Anne2

Hi!
Having spoken to national debtline, I have decided that I am going to stop paying mortgage payments, opt for voluntary repossession, wait for the request for shortfall from bank and then go bankrupt. Been reading as much as I can to get things clear in my head before we take the first step of stopping mortgage payments! Two questions I have, if anyone could help that would be great...

Can the OR ask for bank statements etc from partner?? Or do they just take what you put on the SOA?? His income isn't amazing, but combined with mine we might end up with a small IPA. Rather than him work full time to end up loosing alot of it, and have it all go on for 3 years instead of 1 we were thinking this might be a good opportunity for him to take training to improve his future job prospects, would the OR frown upon that???

National debtline recommended opening a new bank account soon to get wages paid into, etc to prevent the bank taking anything. I was thinking of going straight to opening the bankrupt account with co-op. Nat debt line also said not to open with Royal Bank of Scotland as they were affiliated with tesco (I have small credit card debt with them) and may try and get the money back after bankruptcy. I got the impression from a thread on here but wasn't 100% sure that Co-op is affiliated with Manchester Building Society (mortgage is with them), can anyone confirm this or even better, tell me it's not true!!!

Sorry 3 questions!!! To stop mortgage payments is it just a case of cancelling the direct debit payments????

Many thanks for taking the time to read this!

peachyprice

Hi Anne,
Waiting for the house to be repossessed can take a long time, up to a year in some cases, you don't need to wait for the repossession and a final figure from the bank to go bankrupt, the shortfall will still be included in your BR.

They will only ask for your CC & bank statements, not your OH's.

As far as I am aware co-op isn's affiliated with any other banks.

Yes, just cancel the DD for mortgage.

Anne2

Thank you for the amazingly fast and helpful response peachy price!!! How does that work with going bankrupt before repossession?? I was under the impression from nat debtline repossession hadto take place first. The negative equity in our property is reason for going bankrupt. OH is other half!!?! What's CC, haven't come across that one yet!??! Good news on the co-op! Can't wait to press that cancel button on the mortgage direct debit!!!

Many thanks again

Anne2

PS
Would the OR frown on husband doing a course???

peachyprice

CC is credit card

Sorry Nat debtline gave you that impression, it isn't correct. The house can be repossessed at anytime, even after discharge, the shortfall will always be included, as long a you don't sign a Deed of Acknowledgement from the bank after the date of bankruptcy.

Because bankruptcy is personal to you the OR wouldn't give a flying wotsit about your OH doing a course, it's none of their concern

Anne2

OR not giving a flying wotsit is good to hear! CC, very obvious now I know!!! How would property not being repossessed work for petitioning for bankruptcy as we wouldn't have any debt at that point? (except for £400 credit card)

debtinfo

Hi anne, on the statements question, in general the OR will only ask to see your bank statements,but although rarely enforced the OR does have wide ranging powers. One of these is that the OR may request detals from a person appearing to have information about the bankrupt. Dont worry though this would only happen if the OR thought the bankrupt was witholding something

peachyprice

Sorry to sound thick Anne, but I don't understand why you need to go bankrupt just because of negative equity.

Can you not afford the mortgage or do you need to move or something?

Anne2

I'm on maternity leave at the moment, and we saved up as much as we could before to see us through to my return to work. Unfortunately my husbands income dropped a lot in the last couple of months, something we hadn't planned for. With almost 3 months to go before I return to work we have run out of cash and do not have what we need to cover the mortgage. Even when I return to work we will not have enough to cover everything including childcare for 2 children plus the £4500 of debt we would have built up by then to pay mortgage. So we have decided to bite the bullet now rather than wait until the debt is worse.
Hope that answers your question!!!

peachyprice

Thanks Anne, that explains your position perfectly.

When you fill in the forms you just put your unsecured creditors, so your £400 CC, any overdraft, catalogues, any unpaid bills, utility arrears parking tickets, literally anyone you owe money to. Put your mortgage under secured creditors and in the explanation part you just put exactly as you have above and a rough estimate of what you expect the shortfall to be.

We did have a member who like you had very little debt and a house that hadn't been repossessed, it all went through fine and the OR completely understood the need for BR. I'll see if I can dig the thread out later.

But you certainly don't need to wait, you can get the ball rolling now.


HTH

Anne2

That's a great help, and thanks for having a look for the thread peachyprice, v good of you! Good to know we won't have to wait for house to be repossessed before applying for BR, be good to get things going...starting with cancelling my mortgage direct debit tomorrow! Yey!!! Registered on the do it online for BR forms etc, forms look a bit daunting, bit by bit is the best approach???

HTH- happy to help!???! (I'm getting good!)