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Bankruptcy, joint debts / joint assets & job offer in New Zealand!

Hi all... my first post here so be gentle with me! It's a long post, but I have a complicated life!! Sorry....

My wife & I run up unsecured debts of about £47K to 9 different creditors. Clearly we haven't been able to cope with the repayments (if we had, we wouldn't be in this mess). We've been in a debt spiral for a while now, but we've been burying our head in the sand... until now. What's really brought this to a head are 3 factors all occurring just before Christmas 2009 (1) She lost her job, (2) I have had my hours drastically cut so my pay is about half what it has been for a few years, (3) Due to family bereavement we have just taken on 2 children (3 month old & 6 year old) that nobody else can take care of. They are in the Philippines, where my wife is from (although she is also UK citizen). She is there now & will be staying there until she can sort out the adoption. This could take a year so there's no chance of her working in that time. You could say that it a "perfect storm".

Our house is worth approx £170K (my estimate) with £134K mortgage/loan secured against it. It is in joint names.

Most of the £47K debt is in my name, but a few thousand is in joint names.

I have been in touch with the CCCS and they recommend I go bankrupt. I have been really reluctant to do this because I don't want to lose my house. Now, I am realising that I think I have no option.

If all of this wasn't enough, I've been offered a job in New Zealand. This of course is dependant on me getting the necessary visa etc... but I think there is a good chance. We are thinking... "clean slate, new life, new country".

So, my questions are:-

1. If only I file for BR, am I correct in assuming that the Official Receiver will only be looking to take my share in the property equity (170K-134K)/2 = 18K? If so, that would at least leave some money to start in NZ with.

2. As it's only me filing for BR, can the joint debts (Bank Overdraft) be included in the application?

3. Would I be better off trying to sell the house before filing for BR? I'm thinking that if I'm in NZ, I'm still paying the mortgage & secured loan (over £1000/month) while the OR tries to sell the house. Besides, with the distance & time difference, it could be difficult to sell.

I've got so much going on in my head at the moment it's really stressing me out. I was just wondering what other people would do in my situation. Thanks in advance!

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    1) Yes only your half of the equity would go into the bankruptcy.
    2) For joint debts the whole debt would fall to the none bankrupt person
    3) Cant really tell you what to do but it is a possibility, she can use her half however she wishes such as paying her own debts, your half would need to be handed over to the Official Receiver when you did go bankrupt
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
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