Is being forced into Bankruptcy an option?

ToughDecisions

Hi everyone - I've got a quick question I hope you can help with. For various reasons I think BR is the best option for me, but from the advice on this site I'm not sure my debts are 'bad enough' for this to be agreed by the OR. My preference is for BR rather than an IVA as I feel like I've only just got myself emotionally back on my feet again and would rather a 3 year IPA which would give me a slightly better standard of living than the 5 year IVA which would mean I'd have real trouble getting on with my new life and starting fresh.

My house is in slight negative equity, and I've split from my partner so we don't want to live there any more. So basically I'm prepared to lose it. If the advice I get from the official advisors is that BR isn't something they'd recommend for me, I was wondering whether stopping paying the mortgage would eventually 'force' my bank to make me BR.

Is this a good or really bad idea???

Thanks for any help
TD

JPS29

Hi.

If you're not sure your debts are "bad enough" have you thought about a DRO.

I would strongly suggest you get free professional advice, as this is not something to go into lightly

peachyprice

Mortgages are not debts that are included in bankruptcy until the house is repossessed. If you stop paying your mortgage that it what the bank will do, repossess the house, they won't then make you bankrupt for the shortfall, they will use other debt collection methods to get you to pay the debt.

HTH

tigerfeet2006

Hi and welcome to the board.

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only.National Debtline operate an advice on first phonecall system CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

Read as much on here as you can, starting with the Bankruptcy Help sticky and that will answer a lot of your questions. But don't be afraid to ask about anything you don't under stand.

http://forums.moneysavingexpert.com/...html?t=1056083

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

sieve

What Peachy said is correct, however bear in mind that it doesn't mean you have to wait for the house to be repo'd before you go bankrupt. You can go BR, give back the house, and then whatever shortfall there is will be automatically included as you took out the mortgage before you went bankrupt.

If you are definitely going to go BR and are happy to lose the house then stop your mortgage payments immediately so you can save for both the BR fees (£530ish) and the hefty rental deposit you are likely to need moving into rented accommodation. They can't repo the house until you're at least 3 months behind and even then it will take time so you will have plenty of time to save for a deposit if that's what you decide to do.

But as others have said, YOU MUST GET ADVICE from somewhere like the National Debt Line (links are at the top of the main Bankruptcy & Living with it forum).

Good luck.

Cheers

S