Found out today i have been made bankrupt HELP

pickle2467

Long story cut short

HMC filed a petition for bankruptcy due to estimated tax owed as i hadnt done my books for 4 years had been suffering with serious depression and stuck my head in the sand. i have since done them and recieved a statement of liability, what weight of my shoulders that was. but i stupidly forgot about the bankruptcy petition and have today found out i am now bankrupt.

I bought my house 8 years ago, am a single parent, self employed, due to not completing books havent been able to claim working tax credit for 2 years and have been living on a very low income, hence everything coming down around me and just coping with day to day stuff hoping everything else will wait.....i cant pay the money i owe

i have roughly around 16,000 in debts, i thinkmy house is worth about 180,000 a mortgage of 40,000 what r my options if any or will they just evict me and sell my house?

tigerfeet2006

Hi and welcome to the board

First thing tomorrow get on the phone to Business Debtline and go through everything with them, Number and link in my sig.

The OR/IP will be looking to realise the equity in your property. You will either have to find the money to buy the OR/IP's interest or they will look at selling to realise the equity. This won't happen straight away and you would get a chance to find new accomodation. Do you have children?

How much equity is in the property? Is it a joint mortgage? Have you had any recent valueations done?

The OR will be want a SoA at some point too so if you pop one up on the board then someone will check it for you.

http://www.makesenseofcards.com/soacalc.html

Have a read of the Bankruptcy Help sticky as that is an invaluble source of info.

pickle2467

I have 3 children, 2 still living at home aged 23 and 8

havent had valuation done since i bought the house but know roughly what other houses in the road sold for about 4 years ago

I do have equity in my house i have a mortgate of 40,000 and so think i have about 140,000 equity?

what is a Soa? sorry dont know all the abbreviations

tigerfeet2006

As you have dependants they are not going to chuck you out on your ear. You will get a chance of securing alternative accomodation if needs be.

Get some estate agents round and ask them to value the house for a quick/forced sale to give you a better idea of what you are looking at.

SoA= Statement of Affairs. If you follow my link and fill in hte form, format to MSE, then copy and paste it into a thread and some one will check it for you, so you know what the OR is looking for when he sends you the forms to fill in.

How much are your debts for?

pickle2467

having gone through all ignored mail today about 16,000

tigerfeet2006

Is that the total of all your debts?

If so could you get a remortgage or loan to cover that plus the OR's fees and look to get the BR annuled. If it is that low, it issn't worth losing your house over.

pickle2467

i didnt think i could remortgage if i have just been made bankrupt?

tigerfeet2006

This is where I get a bit out of my depth but there is sure to be someone along tomorrow who will be able to help.

Give Business Debtline a ring and get some professional advice tomorrow.

With those low debts and that equity I am sure you can find a way to anull the BR.

Some light reading
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/Canmybankruptcybecancelled.pdf

I have to try and sleep now and my battery is going to die.Will look in tomorrow evening to see how things went.

blind-as-a-bat_2

You may well get several letters from companies offering to 'help' annul your BR

DO NOT USE THEM

You really need professional legal advice from a reputable law firm on this one.

You should be able to raise the money from your equity, though it won’t be easy, and doubt you can do it on your own.

But there are a lot of sharks out there now waiting to rip you off so you need to be very careful who you choose to help

debtinfo

Hi Pickle, Is the property solely or jointly owned, If it is solely owned then the Official Receiver has control of your assets and so you cannot remortgage to get the money. If the Property is jointly owned then the none bankrupt person can raise money against the property. Other options are to secure the debt to the satisfaction of the court with an IVA. You should go see an Insolvency Practitioner as they will have contacts where you can do this. How much did the HMRC debt turn out to be after the redetermination

tigerfeet2006

Thanks for that information debtinfo.

How has it been today Pickle?