think we may be advised to go bankrupt

louisaL

i have 15k worth of debt DH has 35k worth of debt and we have a 'meeting' with payplan tonight. I think by my calculations using the forms on here we should have £250 a month to pay the debts back but thinking that they may advise us to go BR.

i am just so worried about getting a new home.

can anyone advise me?

tigerfeet2006

By new home, do you mean rented? Are you in rented at the moment or owned?

rog2

louisaL wrote: »

i am just so worried about getting a new home.

First of all, louisa, I would wait and see what Payplan suggest.
There could well be an alternative to bankruptcy, in your situation.

Even if Payplan advise you both to file for bankruptcy it does not, necessarily, follow that you will lose your home.

Good luck with the meeting.

louisaL

thank you, we own 50% of our home with the other 50% being with a housing association. i dont really know the in's and out's of how going bankrupt effects your home if you only own half to begin with.

i just assumed if you had any assets (although we're in negative equity) they get taken off you when you go BR??

i know we would never be able to get another mortgage but i worry for renting as well with all the checks they do on you so wondered how else we would get a roof over our heads if the house did get taken away?

Do you know?

rog2

louisaL wrote: »

i just assumed if you had any assets (although we're in negative equity) they get taken off you when you go BR??

A common misconception, louise - often fuelled by misinformation from creditors and debt collectors.

True, if you have a sizable equity in the house, then the OR may insist that the house is sold with the proceeds going to your 'estate in bankruptcy' for distribution to your creditors. However, the OR will always give you the first option to 'buy back' any beneficial interest in the house. He/she will only 'force a sale' through the Courts, as a last option.
In your case, as you are in negative equity, you would e able to take advantage of the scheme, administered by the Insolvency Service, that allows you to purchase your BI for a nominal £1, plus fixed price conveyancing charges.

You should discuss the full implications of a possible bankruptcy with PAYPLAN, this evening - and make sure that you go through all of the things that are worrying you.

rog2

louisaL wrote: »

i know we would never be able to get another mortgage but i worry for renting as well with all the checks they do on you so wondered how else we would get a roof over our heads if the house did get taken away?

Do you know?

There are mortgages available to bankrupts - I appreciate that they are difficult to get, these days, but NOT impossible.

As I said before, you would be unlikely to lose your house, but even in the event of a forced sale this would not happen overnight, and Payplan, or your local CAB, would be able to advise you on the alternatives.

louisaL

thank you for all your advice, both of you!

i have so many questions i'm at bursting point, but dont want to worry myself unneccesarily if theres no need.

in one respect i feel as long as i can keep the house (not sure why) i would be 'happy' to go bankrupt as then it would save the next 10yrs paying off debts.

i'll let you know how i get one tonight.


regards louisa