Advise please!??!

Anne2

Hey all, hope good wkds are being enjoyed by all. Few questions here if anyone has a minute to answer that would be great, ta!!!

1. We have stopped paying mortgage in order to save rent/bankruptcy fees (and we don't have the money to pay for the mortgage), and then will do vol repo. Looks like we won't have enough by the time we move out and start paying rent. (we need to move out at planned time for various reasons) We have been offered a gift by a family member to make up the rest of the cash we'll need. Will this be frowned upon by OR/will they want to know where money has come from??

2. The BS have rung, and have now sent a letter outlining our options, etc. Might sound a bit silly but it feels wrong to pretend to them we intend to sort everything out when infact we intend to go for vol repo. Is it bad to just ignore them completely??

3. The reason for going bankrupt is the shortfall that will occur when the house is repossed (or even repossessed!) and then sold. Am I right in saying I can go bankrupt before the repossession etc takes place?? If yes, what if it takes ages ages for them to sue us for the shortfall, would it still be included in the bankruptcy???

4. Finally!!! My only other debt (apart from student loans which I know aren't included) is about £500 on a credit card. I haven't stopped the minimum monthly payments on this as I don't want to start getting letters from the CC company. Will the OR view this as me having favoured one creditor over another??

Many thanks if you have read this far!!!:T

dojoman

Hi Anne, when we were advised to go BR, we was told to stop all non essential payments otherwise it would be viewed as favouring 1 creditor over another. I am sure one of the more knowledgable posters will be able to confirm whether that is the case.

Anne2

Thx for the speedy response dojoman! What is considered a non essential payment??

fiveyearplan

Non essential payments would be anything other than priority bills. Priority bills are rent/mortgage, council tax and utilities. Everything else is non-essential. If you are considering bankruptcy though and want to keep anything after (ie mobile phone contract/insurance etc, then I would also try and pay that.

fiveyearplan

Anne2 wrote: »

Hey all, hope good wkds are being enjoyed by all. Few questions here if anyone has a minute to answer that would be great, ta!!!

1. We have stopped paying mortgage in order to save rent/bankruptcy fees (and we don't have the money to pay for the mortgage), and then will do vol repo. Looks like we won't have enough by the time we move out and start paying rent. (we need to move out at planned time for various reasons) We have been offered a gift by a family member to make up the rest of the cash we'll need. Will this be frowned upon by OR/will they want to know where money has come from??

2. The BS have rung, and have now sent a letter outlining our options, etc. Might sound a bit silly but it feels wrong to pretend to them we intend to sort everything out when infact we intend to go for vol repo. Is it bad to just ignore them completely??

3. The reason for going bankrupt is the shortfall that will occur when the house is repossed (or even repossessed!) and then sold. Am I right in saying I can go bankrupt before the repossession etc takes place?? If yes, what if it takes ages ages for them to sue us for the shortfall, would it still be included in the bankruptcy???

4. Finally!!! My only other debt (apart from student loans which I know aren't included) is about £500 on a credit card. I haven't stopped the minimum monthly payments on this as I don't want to start getting letters from the CC company. Will the OR view this as me having favoured one creditor over another??

Many thanks if you have read this far!!!:T

If your only other debt is £500 then you are not insolvent until you actually have the shortfall on your mortgage so wouldn't be able to go bankrupt until the debt actually exists. Hve you taken advice? You need to ring one of the debt charities like CAB, National Debtline or CCCS.

Anne2

Thx five-year plan. I have taken advice, spoke to national debtline, very helpful. We can't keep up with mortgage payments so have decided on the vol repo. I had the impression from somewhere I could go bankrupt before I have the shortfall on mortgage, but that would be a bit strange!??! Makes a lot more sense to be go bankrupt once BS comes for the shortfall.

Thx again!