a few questions after being made bankrupt

trip2themoon

After visiting these forums for the last 12 - 16 months, I’ve gathered huge amounts of information (thanks to everyone for posts they've made that have helped me out!) but never had the urge to post before.

After taking out a DMP in January 2009 that would last until 2020 and feeling like I was not getting anywhere reducing my debt I decided back in October 2009 to go Bankrupt. On 11th March 2010 I was made Bankrupt.

I just have a few questions to ask about what happens now. Firstly I have a joint mortgage and an unsecured loan with a friend (we are no longer friends though) through Northern Rock. I no longer live in this property (I don't even have a key!) and as far as I believe my friend rents this property out. What will happen in regards to the property? Its been on the market for the best part of 2 years, so will the OR put it up for auction? Will 100% of the unsecured loan be under my bankruptcy or will only half of it be covered with the remaining half to be paid by my friend? I also have a joint bank account that is overdrawn, how is this debt distributed?

I currently rent a house through a housing association, who don’t except bankrupts, with my fianc!e. Will the HA politely ask us to leave?

Do I need to tell the OR that I will be getting married in May, or after I’m married? I'm getting married in Cyprus, so would I have to show any marriage certificates to the OR? Most of the marriage costs have already been paid. All of my debts occured before we met so will going bankrupt have any effect on my future wife? She has already disassociated herself from me through the relevant credit reference agencies before I went bankrupt.

If I have an IPA or IPO will this come straight out of my wage's or will it be set up like a direct debit? Does an IPA only last until I'm discharged?

When is the best time to clean up my credit reference file? Is it after I’ve been discharged or after I finished paying the IPA?

This is all I can think of at the moment, I’m sure I will have more questions before and after my interview with the OR.

Thanks in advance for your help.

peppa-pig

trip2themoon wrote: »

After visiting these forums for the last 12 - 16 months, I’ve gathered huge amounts of information (thanks to everyone for posts they've made that have helped me out!) but never had the urge to post before.

Welcome to the forum, you are sure to get some very helpful replies to your posts. I have tried to answer the best I can, but am sure someone else will be along soon to add more information.

After taking out a DMP in January 2009 that would last until 2020 and feeling like I was not getting anywhere reducing my debt I decided back in October 2009 to go Bankrupt. On 11th March 2010 I was made Bankrupt.

I just have a few questions to ask about what happens now. Firstly I have a joint mortgage and an unsecured loan with a friend (we are no longer friends though) through Northern Rock. I no longer live in this property (I don't even have a key!) and as far as I believe my friend rents this property out. What will happen in regards to the property? Its been on the market for the best part of 2 years, so will the OR put it up for auction? Will 100% of the unsecured loan be under my bankruptcy or will only half of it be covered with the remaining half to be paid by my friend? I also have a joint bank account that is overdrawn, how is this debt distributed?

All joint debts now fall to the other person named on the account for the FULL amount owed not just their half, unless they have gone bankrupt too where then the debt will be covered by the BR.

With regards to the house, I am not sure what will happen here. Someone else will be along later to give you an answer on that.

I currently rent a house through a housing association, who don’t except bankrupts, with my fianc!e. Will the HA politely ask us to leave?

You are best checking the exact wording of your tenancy agreement, are you behind on your rent with them? We lived in a private rented house that had a BR clause in the TA and the landlord was happy to keep us. The OR will more than likely contact them so they will probably find out you are BR. The Shelter website gives more information if you need it.

Do I need to tell the OR that I will be getting married in May, or after I’m married? I'm getting married in Cyprus, so would I have to show any marriage certificates to the OR? Most of the marriage costs have already been paid. All of my debts occured before we met so will going bankrupt have any effect on my future wife? She has already disassociated herself from me through the relevant credit reference agencies before I went bankrupt.

If your future wife is not currently living with you and moves in after you are married you will need to advise the OR of this. If she is already living there you will probably need to inform them you will be away whilst you get married in case they need to contact you. You will be affected in the future if you try and get a mortgage together or any other finance as obviously this will be on your credit file.

If I have an IPA or IPO will this come straight out of my wage's or will it be set up like a direct debit? Does an IPA only last until I'm discharged?

You will deal with a company called Moonbeaver who will contact you and ask for payslips etc after the IPA has been agreed. This last for 3 years so will last after you are discharged and any changes in your income during that time affects the amount you pay. I think it is set up like a direct debit or standing order. You won't get an IPA if your sole income is benefits.

When is the best time to clean up my credit reference file? Is it after I’ve been discharged or after I finished paying the IPA?

A couple of months after you have been discharged is the best time to start the clean up.

This is all I can think of at the moment, I’m sure I will have more questions before and after my interview with the OR.

Thanks in advance for your help.

Best of luck for the future! And good luck with the weddding.

trip2themoon

Thank you for your response, it has cleared up a few things for me.

Just to note, i currently live with my fiancee, and put her details down on the debitors petition form. So will the OR need to know once we are married? We are currently up to date with our rent and have never missed a payment, so on this basis alone i'm hoping they will let us stay.

if anyone else has any advice, it would be much appreciated.

thanks again