Decided I am going for bankruptcy and house repossession

stradlinho

Ok so here is my current situation.

I hold a joint mortgage for a house with my ex-gf. The ex moved out 2 months ago as she met someone else. She refused to pay anything towards the mortgage.

So I continued to pay everything on my own but this weekend I have finally snapped and handed in my notice at work. I have been to the doctor and been diagnosed with anxiety and depression.

My debt situation is as follows

Mortgage 91k (House value 75-80k)
Credit Cards 2k
Sofa £150

The area which the house is in, is 100 miles away from my family and I cannot continue there.

I have now relocated down to my family (staying in my sisters, she has a 3 bed council house and I am sharing a room with my 2 young nephews) and have removed all of my possessions from the house. I have cancelled the direct debit for the mortgage.

I want the house repossessed and realise there will be a massive shortfall so I want to go bankrupt to clear all of my debts and make a fresh start.

Point to note - I have never missed a payment on anything in 6 years so my credit file is perfect ( I also realise what going bankrupt will do to it)

However instead of battling for years to clear the shortfall and my other debts I think my best option is bankruptcy.

Please do not reply with stay in the house and sell it as doing this has caused my health to deteriorate considerably and even if I managed a quick sale I am not prepared to foot all of the bills regarding selling the house and then paying off the shortfall by myself for years just to save my credit rating. It's just not worth it.

What kind of things do I need to be doing pre-bankruptcy ?

As I will be looking at being rehoused by the council, should I settle my utility bills to keep these companies sweet for when this happens ? Is there any advantage in doing this ?

Could I apply for a privately rented property as I have enough for a deposit and months rent in advance from my final wage packet. (However I am in receipt of benefits as of today). Would a private landlord take me on as I am not bankrupt yet ?

Can I use my credit cards ?

Should I continue paying my mobile contract ? Will this be cancelled once the bankruptcy starts ?

Basically, the point of this topic is to find out the things that a person in my situation (perfect credit rating, between 1 and 2k capital) can do to make the process of bankruptcy and moving on after it as painless as possible.

Any advice is welcome.

Thanks

nervousmother

stradlinho wrote: »

Ok so here is my current situation.

I hold a joint mortgage for a house with my ex-gf. The ex moved out 2 months ago as she met someone else. She refused to pay anything towards the mortgage.

So I continued to pay everything on my own but this weekend I have finally snapped and handed in my notice at work. I have been to the doctor and been diagnosed with anxiety and depression.

My debt situation is as follows

Mortgage 91k (House value 75-80k)
Credit Cards 2k
Sofa £150

The area which the house is in, is 100 miles away from my family and I cannot continue there.

I have now relocated down to my family (staying in my sisters, she has a 3 bed council house and I am sharing a room with my 2 young nephews) and have removed all of my possessions from the house. I have cancelled the direct debit for the mortgage.

I want the house repossessed and realise there will be a massive shortfall so I want to go bankrupt to clear all of my debts and make a fresh start.

Point to note - I have never missed a payment on anything in 6 years so my credit file is perfect ( I also realise what going bankrupt will do to it)

However instead of battling for years to clear the shortfall and my other debts I think my best option is bankruptcy.

Please do not reply with stay in the house and sell it as doing this has caused my health to deteriorate considerably and even if I managed a quick sale I am not prepared to foot all of the bills regarding selling the house and then paying off the shortfall by myself for years just to save my credit rating. It's just not worth it.
Have you considered letting it out?
What kind of things do I need to be doing pre-bankruptcy ?

As I will be looking at being rehoused by the council, should I settle my utility bills to keep these companies sweet for when this happens ? Is there any advantage in doing this ?

Could I apply for a privately rented property as I have enough for a deposit and months rent in advance from my final wage packet. (However I am in receipt of benefits as of today). Would a private landlord take me on as I am not bankrupt yet ?
a private landlord may take a bankrupt so yes you stand a good chance, your main problem is you are on benefits
Can I use my credit cards ?
do not use credit cards knowing you are going bankrupt.
Should I continue paying my mobile contract ? Will this be cancelled once the bankruptcy starts ?only if you want to cancel it. I kept my mobile on after BR no problems

Basically, the point of this topic is to find out the things that a person in my situation (perfect credit rating, between 1 and 2k capital) can do to make the process of bankruptcy and moving on after it as painless as possible.

Any advice is welcome.

Thanks

I would suggest if you really want them to repo the house and then go BR is not to do anything until they have actually repossessed it, this could take some time. You can normally claim council tax releif for 6 months but if the property not repo after that you will become liable for the council tax too, if of course you go BR afterwards the debt can be included.

The whole process could take 7months, in that period your circumstances may have changed and it may be possible to negotiate the shortfall rather than having to go BR.

kerrypn

Stradlinho,

NM has raised some great points here. I know you are feeling really low and finding this difficult, but please dont do anything rash.

Your credit file is (by your own admission) perfect, and your current unsecured debt is quite small-no comfort, I know it still needs paying-but lets look at all your options before you make a decision that will impact you for the rest of your life.

You need to take professional advice. Contact National Debtline, CCCS or CAB and discuss all your options.

Letting it out sounds like a great idea to cover the mortgage. Have you had your ex signed off the mortgage btw?

If you take advice and feel BR is still the best option for you-and only you can really decide that-come and post back and you will get loads of support and advice.

I am bankrupt, and its the best thing I ever did-but it was, and should always be, the last resort when all other options are exhausted-the sacrifices you make when declared BR must be outweighed by the benefits of it or you will just end up even unhappier.

Best of luck with everything, hope you start to feel stronger and better soon-and take professional advice-and keep posting for support.

All the best

Kerry

fiveyearplan

I would also advise to take meter readings of elec, gas and water, if applicable, backed up with photos of the meters. Tell the utilities you have moved out and get a final bill. You can then decide whether or not to pay it or put it into your bankruptcy.

stradlinho

kerrypn wrote: »

Stradlinho,

NM has raised some great points here. I know you are feeling really low and finding this difficult, but please dont do anything rash.

Your credit file is (by your own admission) perfect, and your current unsecured debt is quite small-no comfort, I know it still needs paying-but lets look at all your options before you make a decision that will impact you for the rest of your life.

You need to take professional advice. Contact National Debtline, CCCS or CAB and discuss all your options.

Letting it out sounds like a great idea to cover the mortgage. Have you had your ex signed off the mortgage btw?

If you take advice and feel BR is still the best option for you-and only you can really decide that-come and post back and you will get loads of support and advice.

I am bankrupt, and its the best thing I ever did-but it was, and should always be, the last resort when all other options are exhausted-the sacrifices you make when declared BR must be outweighed by the benefits of it or you will just end up even unhappier.

Best of luck with everything, hope you start to feel stronger and better soon-and take professional advice-and keep posting for support.

All the best

Kerry

Thanks for the great reply Kerry. It's nice to know someone cares !

Letting it out is not an option for me. Mortgage co will not let me let it out and i have nowhere near enough equity for a BTL mortgage which is what letting agents require. I do not know anyone whom I could rent it out to 'on the sly' if you know what I mean.

Also the house needs slight renovation work to bring it to a standard to be let. I am out of work and do not have the funds for this.

The ex is not signed off the mortgage. Mort co would not remove as I did not earn enough to take it on myself.

In a way I am pleased this didn't happen as my ex thought she could walk away from the financial commitment scot-free and is now well and truly ******. She loves her job and would not want to give it up so as she is earning she will end up with a nice IPA for 3 years whereas I won't as I will not be working over the next year at least until I am discharged.

I really do feel BR is the best option. An IVA or negotiating a repayment plan for the shortfall will both cost me my credit rating. The ex has made it clear she will not make any contribution to the shortfall. Why should I struggle paying this for years and years ?

confused76

hi welcome to the board!
as others have said br should be a last resort. make sure you speak to one of the debt charities before you make your final decision. they will at least give you all your options and you can weigh up the pro's and con's.

i can totally understand you moving back towards your family where you are happier. many people on here understand the emotional strain you are under so make sure you post and questions and there will always be someone around to reply or say hi
all the best

stradlinho

fiveyearplan wrote: »

I would also advise to take meter readings of elec, gas and water, if applicable, backed up with photos of the meters. Tell the utilities you have moved out and get a final bill. You can then decide whether or not to pay it or put it into your bankruptcy.

Thanks for reply !

Been busy today.

Water DD has been cancelled. I am due £18 refund lol
TV Licence DD cancelled.
Council Tax DD cancelled. Think I'm owed a refund but lady on the phone said she wouldn't be able to tell before I sent her a letter of repossession ??
Gas and elec - i will be going back to the house 1 more time at the weekend so will take meter readings once everything is unplugged. I've just settled a bill at start of month so will ask for final bill and shouldnt be much.

I take it this will stand me in good stead for when I do become rehoused ?

I plan on continuing to pay my mobile contract. I will also continue to pay for my landline and broadband and hopefully will be able to transfer this to new property ? Is this right ?

I hope nobody thinks I am taking the easy way out. I have struggled by the past 2 years after losing job after job. At one point I was placed in 5 different companies within 1 month by an employment agency and always paid everything on time.

My health and my sanity mean much much more to me though and the fact that it will totally mess up the exes life is 1 of lifes little bonuses !

stradlinho

confused76 wrote: »

hi welcome to the board!
as others have said br should be a last resort. make sure you speak to one of the debt charities before you make your final decision. they will at least give you all your options and you can weigh up the pro's and con's.

i can totally understand you moving back towards your family where you are happier. many people on here understand the emotional strain you are under so make sure you post and questions and there will always be someone around to reply or say hi
all the best

Hi

I have absolutely no-one where I was living to turn to. I need my families support.

I am due to see CA tomorrow. I know the judge will want to know I have had some advice before BR.

My mind is made up though. A fresh start is what I want and need. I realise it won't be easy but it is better than still paying for the debt all on my own for years to come.

kerrypn

stradlinho wrote: »

Thanks for the great reply Kerry. It's nice to know someone cares !

Letting it out is not an option for me. Mortgage co will not let me let it out and i have nowhere near enough equity for a BTL mortgage which is what letting agents require. I do not know anyone whom I could rent it out to 'on the sly' if you know what I mean. Fair enough, I know BTLs can be hard to get

Also the house needs slight renovation work to bring it to a standard to be let. I am out of work and do not have the funds for this.

The ex is not signed off the mortgage. Mort co would not remove as I did not earn enough to take it on myself.

In a way I am pleased this didn't happen as my ex thought she could walk away from the financial commitment scot-free and is now well and truly ******. She loves her job and would not want to give it up so as she is earning she will end up with a nice IPA for 3 years whereas I won't as I will not be working over the next year at least until I am discharged. Your ex will become liable for the entirety of the shortfall, however she will not necessarily be declared BR just because you are. It will mean she will have to pay though.

I really do feel BR is the best option. An IVA or negotiating a repayment plan for the shortfall will both cost me my credit rating. Certainly-as long as you are comfortable with your decision The ex has made it clear she will not make any contribution to the shortfall. Why should I struggle paying this for years and years ?

No one thinks you are taking the easy option-BR can be wonderful after years of financial hardship-but can also be the wrong decision for some people-as long as you take advice and are happy with your choice, people will help you here with everything from general support to filling in your statement of affairs. Some great Stickies at the top for info, also see www.insolvency.gov.uk

Best of luck

stradlinho

Thanks Kerry

I have one question regarding voluntary repossession and bankruptcy. After reading on this forum it seems that Northern Rock will try and make me sign an acknowledgment of shortfall which everyone advises not to sign if going bankrupt.

I certainly won't be signing it but as the mortgage is in joint names and both myself and the ex (with whom im not on speaking terms with) will be contacted, if she signs this acknowledgment will that be like I have signed it also if you know what i mean ?

confused76

stradlinho wrote: »

Hi

I have absolutely no-one where I was living to turn to. I need my families support.

I am due to see CA tomorrow. I know the judge will want to know I have had some advice before BR.

My mind is made up though. A fresh start is what I want and need. I realise it won't be easy but it is better than still paying for the debt all on my own for years to come.

i'm glad you've got your families support

noone will think you're taking the easy way out. you'll get loads of support here, we just want you to be sure as it's a big step. we're with you all the way though