Beneficial Interest and other Bankruptcy Qs

Phoebs

Back again, but this time, not just looking into it, am going to do it. After lots of long hard thinking and considering and a chat with my friendly IFA we've come to the conclusion that Bankruptcy is the only option for me.

But I have some questions that I hope you knowledgeable people will be able to help me with:

1 - My partner owns the house we live in, the mortgage and everything is in his name, and when it was purchased I signed a Deed of Consent basically waiving any rights to the property etc. Does this therefore negate any possibility of my being able to claim (or rather the OR being able to claim) that I have Beneficial Interest in the property?

2 - I have an endowment policy not due to mature until 2023. Is the OR likely to order that it is an asset and must be surrendered? Since taking it out I have developed long term health problems (and hence my financial predicament) so it is unlikely taht I will ever be able to get this kind of insurance again. Surrendering it now would be worth around £5k (about 10% of my debts, but can it be seen as future protection planning?

3 - It may sound extreme, but due to my illness, I need an automatic car and I need a car with a/c or climate control. My current car was purchased last year (by my OH) for £3-3.5k. Will this be taken from me? I mean argueably a cheaper car meeting my needs may not be reliable, and again, due to mobility issues, it must be reliable or I become housebound.

4 - What about our pedigree cats? We breed as a hobby, can clearly show there is no profit in it, but obviously there was the investment originally. Not that the same amount would be achievable on resale. As they are in both our names, is it feasible to explain that they are his cats but in my name also as I'm the one most likely to be doing vet/insurance etc things. Would that protect them? If I lost our cats, I believe my health would diminnish.

5 - Finally, I haven't been able to extract a straight answer from the CIMA (Chartered Institute of Management Accountants) - despite direct emailing and responses - of whom I am an Associate member (!) as to what the implications would be if/when I return to work if I am a bankrupt (discharged or otherwise). Does anyone know CIMAs standpoint as opposed to the general guidelines?

And, finally, finally, is it possible to directly ask the OR these questions as hypothetical questions? Ijust feel that the more prepared I can be, the better.

Thank you in advance

Macduff_3

Hi

Try looking on http://www.insolvency.gov.uk for detailed advice. They are always really helpful if you call them as well and will go away to find out answers and call you back with the info if they don't know immediately.

Phoebs

Thanks Macduff.

I had trawled through their site, but not thought to try phoning them. I will be on the case this afternoon (after paying a couple of much needed cheques into my bank account )

Addicted2Chocolate

1. if you made any contribution to deposit and or mortgage payments the OR may claim you have a benmeficial interest. If you can show you only paid your share of household utilities like gas electric, but nothing toward the mortgage, the OR would be unlikely to look into beneficial interest.
2. If any policy has a surnder value it will be an asset in bankruptcy and realised for the benefit of the bankruptcy estate: ie pay the bankruptcy fees and costs, if any left over a distribution wil be made.
3. If your husband can proove he paid for the car then he is the legal owner, regardless of who is the reg keeper. so woudl not be an asset. If you were the legal owner you coudl claim it as an exempt asset, only if you are reg disabled and yourmobility would be seriously restricted without it, ie you can proove without it you cannot meet medical appointments etc.
4. cannot answer this for sure: they can be treated as assets but i have nt come across this.
5. not sure on CIMA, i know ACCA do not allow bankrupt's to be members, i woudl expect CIMA to have similar policy.

Phoebs

thanks addicted2chocolate

I am pleased to see you coming up with the same answers as I've come to conclusions (the added benefit being the car and proving OH paid for it, which we can do - bonus)!

My only concern now is the cats, even my two calls to the Insolvency Service have not resolved this one.. obviously not an every day occurance!

fatbelly

So the cats question remains...

I had a similar problem with a client who had a couple of horses worth over £1000 each that she couldn't bear to lose. I couldn't guarantee that they would be ignored by the OR and so the client investigated an IVA instead.

In that case they appeared on the Statement of Affairs because of the stabling and feed costs on the expenses part of the form.

Just wondering where the cats would be declared on the form. Perhaps A2C could help here.

Addicted2Chocolate

i think the cats would either be included under 3.19 'any other property of any value' though i woud check the definition of property and if its just inanimate objects dont include them. The S/A does not ask about livestock or pets.
On the outgoings section keep the cats expenses to a minimum, i think the guidance we have is to question anything over £20. So if pet food and insurance is £20 per month it wont raise eyebrows. I love cats and would hate to be in a position where i had to tell a bankrupt we were going to take her cats! id rather not know about it!

Iriahm

hi! I have a pedigree cat and its just accepted that sometimes you have to pay for a pet ( i chose pedigree so i could choose their behaviour traits and lovely breed etc). Never ever have i been asked if he is valuable, which of course he is. He and his sister are worth about £1500 if sold. Payplan never asked for a valuation as they don't consider them "assets". hope this helps!