Going bankrupt

FlofieGirl

I posted a few days ago with a long post about my situation - applied for an IVA which all creditors except 1 (the biggest one) accepted. So we were looking for another solution. We have almost definately decided to file for bankruptcy, but need a few questions answering first. We have decided on this because the amount we owe (including all interest) amounts to almost £100,000.

Can anyone please advise on the following :

We rent our house via estate agents. We have lived here for 3 years and never defaulted on the payments or our council tax. How would bankruptcy affect this ?

The debt is in each of our names so will we have to apply seperately and pay twice ?

Do you have to file in your local court ?

Thanks in advance.

skylight

FlofieGirl wrote:

Can anyone please advise on the following :

We rent our house via estate agents. We have lived here for 3 years and never defaulted on the payments or our council tax. How would bankruptcy affect this ?

Check what your rental contract says. Will not affect council tax.

The debt is in each of our names so will we have to apply seperately and pay twice ?Yes.

Do you have to file in your local court ? Yes. Try the insolvency website first. They have the forms that you can complete online and submit to your local court (you still have to make an appointment)

Thanks in advance.

Hope this helps

james32_uk

Can I ask what bank failed you? Did they flatly refuse or come up with stipulations you didnt agree to? How long do you have to wait until you can try an IVA again?

sanfrancisco

EA will not find out unless they read the local paper. I would keep quiet.

cliffsgirl

My Dad went bankrupt a couple of months ago, we lived in a rented house and the OR wrote to the landlord telling him my dad was bankrupt and asked did my dad have any claim to the house or did he ever own the house, this is in northern ireland so i don't know if the same would apply in england, the landlord was fine about it btw, he said just as long as his rent was paid it was none of his business.

Addicted2Chocolate

We rent our house via estate agents. We have lived here for 3 years and never defaulted on the payments or our council tax. How would bankruptcy affect this ?

answer: as it is a private rntal the Official Receiver woudl send a notice letter to the landlord or agents, asking for copy of tenancy agreement and whether there are any arrears. it shoud only affect your tenancy if there is a forfeiture cluase mentioning bankruptcy, so check your tenancy

The debt is in each of our names so will we have to apply seperately and pay twice ? yes a bankruptcy order is against one person so you both will fill out separate forms and pay two lots of fees

Do you have to file in your local court ? yes, you need to find which local court to you has bankruptcy jurisdiction.

FlofieGirl

Someone asked who refused and why.....

It was HSBC Bank. They were offered 25p in the pound (which all others accepted), but said their policy had changed 2 weeks ago to accepting no less than 36p. This took us below Debt Free Direct's policy/guidelines.

james32_uk

Those HSBC b@stards again. I was fortunate to be able to up my offer from 31% after HSBC insisted on 35% as a minimum for any IVA. Bad luck on that

When I first found out I imediately thought of going bankrupt straight away to get back at them. However, it really would be good to avoid bankruptcy if there's anyway you can possibly avoid it.

Can you shed a little more light on why Debt Free Direct wouldnt allow you to go ahead with a higher offer? Was it because they thought you didnt have enough money left after payment? Can I ask how much you would have had to repay?

Just a thought, if HSBC sold on your debt to someone else then you'd have a much better chance of getting an IVA approved 6 months down the line. I have no idea of how you can find out how close HSBC are doing to selling off but maybe someone at Payplan/CCCS could have an idea?