One Brave leap into Bankruptcy

desmonds

Hi DFW,

Well time has finally arrived for me to finally make that brave decision and file for BR.

So, on Monday I am off to court to do just that and just hope that it works out well for my wife and I and our 3 yr old boy.

My only wish is that we keep the house and any interest in the house be small enough for some beneficiary we may have to settle.

My concern is my mortgage and that nearly all of my £1600 salary goes into paying the mortgage and I worry that the OR will want to release some of my income to pay creditors and forceus to down size.

All my debt is in my name only and all unsecured loans and credit cards.

My wife has no borrowing except the mortgage.

Our mortgage is fixed 'tll 2008 with a redemption penalty of £11,500.00.

Our outstanding mortgage is £357K and the house is valued at @£360K.

Our nett monthly take home income is £2100 and our mortgage payment each month is £1500.

There is always room for me and my wife to do extra hours to boost our income.

I just hope the OR let's us keep the house and if in the future we decide to downsize then that would be our decision and not someone else's.

Anyone that has gone through BR feel free to share your experiences and anyone else willing to lend a word.

Desmonds

Toomuchdebt

From what I have read I would think it would be very unlikely they would let you keep a house worth so much money...have you not thought about selling it and buying something cheaper?How much debt do you have other than the mortgage?

desmonds

I owe £127K:eek: :eek: :eek: :eek:

earwig

hi good luck with it all my oh has gone bankrupt its not as easy as some people on here think the or will only take surpluss income from your wages eg if you have 150 left after paying your rent and hosehold bill inculding food they will take 50% of the 150.00 but if there is less than 90.00 per month surpluss income they wont take it but they will take your car if its worth more than two grand and if you have things what are worth lots of money eg works of art they will take them its not easy as i have said but it worth it in the end and no harder than struggling to pay of debts that you cant aford as for the house its up to the or if they want it or not i hope it gose well for you all the best

Toomuchdebt

desmonds wrote:

I owe £127K:eek: :eek: :eek: :eek:

Yikes.I suppose the worst case scenario will be if they decide the house is worth too much for you to keep.I'm not an expert by any means but hopefully someone else will be able to give some advice.I must admit my gut reaction would be to sell the house and rent somewhere for a year at least as that would reduce the outgoings straight away and if as you say you or your wife could do extra hours I would use that to throw at the debt.But like I said I'm not an expert.

CLAPTON

clearly paying 1,500 mortgage with a 2,100 total joint income (for two people and a kid) is lunatic except...
i assume your plan is to minimise the IPA and once agreed to sell up and release lots of spending power.
frankly i've no idea if it will work, but maybe the judge will think your are taking the ....
i would have thought that a more realistic plan, sensible rent, out goings etc would minimise the IPA without comment ..but i really dont know.

best of luck whatever.

angelsam1984

DO you claim any benefits? or is this included in the income? Theres Tax credits (and 75 percent of nursery fees can be recovered) and Child Benefit. I know its not alot but it does help.
A friend of mine went banckrupt 7 years ago and kept nothing, not even a bank account. She moved into council housing, has recently bought the house and rebuilt her life with her two children and husband.

Is the debt from one creditor or several?

Also for monthly stuff you could sell your boys clothes that hes out grown on ebay, there are usually loads of willing bidders for bundles of clothes that can be posted. The same goes for old toys etc.

Do you have anything big like moblie phones?sky? If so get a payAYG and a digi box with cbeebies and CITV.

I know its not wise and I will probably geet flamed for posting this but has there been any thought of a remortgage over 5/10 years more with some of the £127k, please remember that your mortgage will nearly always stay the same but incomes usually rise.

Sorry if any info is wrong, too late or really wont help

So big hugs and a Big cheeky smile for your Boy

rog2

I think that they can apply a charge, at the land registry, to your house, meaning that if someone wants to buy it, the sarch will show that there is debt against the house. Equally, as I understand, if you sell the house at any time in the future after you are discharged, the OR can take proceeds of the sale. Someone will, I am sure, correct me if I am wrong, or give you more details on this.

scheming_gypsy

My g/f has recently gone bankrupt and was told that, if there is any equity in the house then they'll take it off them (her and the ex) but if not they can keep it.