bankruptcy help

cookie12

Hi everyone!

I'm new to this and a bit scared and a bit clueless to say the least!

I will give you an outline of my situation. Sorry if it's a bit long winded. A friend recommended me and said that you were all really lovely and give really good advice.

I am planning to go bankrupt but have so many questions so here goes.....

I have two barclays accounts. One has my wage, maintenance, all my household direct debit bills, mortgage, barclays secured loan and payplan going in and out and the other just has my chb and ctc/wtc. Both are overdrawn.

As my loan is secured against the house, does everything go in the bankrupcy such as mortgage, loan, credit cards. I am up to date with mortgage and loan but going via payplan at the moment for the cards.

I can afford my mortgage as it is £377.00 but the loan is £380.00 and I owe 30'000 on the cards. As I understand it as the loan is secured against the house I have to lose the house to lose the loan. The only thing is it will cost me aprox £700 to rent which is clearly more that I'm paying for my mortgage. Is there any way that I could keep the house but bankrupt the loan and cards? The house has been up for sale for two years after an ex boyfriend left me with the loan (joint) and I was intending to sell, pay off mortgage and loan but it would still leave the cards. I have not been able to sell the house and can no longer keep up with all the outgoings. The house is up for 152'000 and I paid 150'000 there is £92'000 left to pay on the mortgage. The loan has 43'000 left to pay.

Once I have decided to go bankrupt do I stop paying the loan, mortgage and payplan or just paying the mortgage just in case I can keep the house as I don't want to fall behind and be in arrears? Also how does it work during the bankruptcy paying the household bills whilst still in the house?

I understand that I should open another bank account but when would be the right time to do this regarding continuing to pay the household direct debits and mortgage if applicable. My wage etc gets paid in on the 1st of each month and all outgoings come out at that time. In order to avoid loan/mortgage/credit cards and overdraft just being taken from the barclays account I have now without my permission when and which do I transfer over to the new bank account? I am wanting to go bankrupt asap but it's too late for my wage/maintenance/chb/ctc to be changed before 01/11/09.

In the house is my self and two children aged 10 and 13. If I do lose the house how long do we have before we have to vacate the property?

I'm so sorry for going on and if you are still awake I would really appreciate your advice

Thank you in advance

Cookie

Darnit_2

Hi and welcome. I am still learning myself, but here is how I think it would work for you...

Add together to mortgage and secured loan (if it is in just your name?). take this off value of house, you have a balance, so have equity. If yiou go BR in these circs, the OR would want the equity from you to pay other creditors. in these ci8rcs, you may be better not paying your mortgage and saving it to pay rent, until such time as you leave the house and give it up for volutary repossesion, orit is repossed by either secured lender. the only way I know that you could avoid this, is if teh value was lower 9are you sure price is realistic) and it was in negative equity or worth same as loans. the the OR wouldnt be interested in your house, and you cold stay.

If the secured loan or mortage is still in joint names, then the lender would go after your ex for the payments, if you are BR.

I am not sure if the benificial interswt would apply if you could show the true value to be a bit lower with a small amount of equity, then you cuold make a payment to the OR to buy back the equity rather than being repossessed.

I hope this is right, someone will be along later to correct me if i am wrong!

Br will write off ALL unsecured debts in your name, so you don't need to pay any of those again after BR.

debtinfo

Hi Cookie and welcome,

ok, the first thing to know is that if you want to stay in the house you will have to keep paying both the mortgage and secured loan, these are secured on the property and the lender has the right to get their money from the property. the second problem is if you have equity in the property, if you do then the or will either want you to buy this back or may sell the property to get the equity. As darnit says make sure you know what a realistic value of the equity is (sometimes estate agents put them on the market for a bit more than they are actually worth)

If you decide you can't afford to stay in the property in the long run then you do have some time in the property to get things sorted out. If the OR tries to sell the property to get the equity they normally will not do this in the first year after the bankruptcy, and with less than £10,000 of equity they will not usually do anything for the first 2 1/2 years. If you stop paying the mortgage and refuse to give the house back voluntarily it is usually 3 months minimum before you would get repossessed as it takes time to go through the courts.

cookie12

Thank you for your advice so far. I am very grateful for any help I can get x