Voluntary Repossession & Bankruptcy Advice Please?

shazzab123

Hi,
Rather complicated so will bullet point circumstances. What should we do and in what order?

• Have mortgaged property (empty) with unauthorised let mortgage which is not affordable, in negative equity
• I have debts of approx 12K
• Partner has debs of approx 15K
• Joint debts of 15K credit card and loan in my mothers name
• I live in Spain with seasonal pay so can not afford to pay anything towards debts
• Partner lives in UK with reasonably paid job (awaiting redundancy which would sort all this out but it is not looking that likely now)
• On paper partner can afford to repay debts but in reality can't - will this be taken into account?
• Can partner go bankrupt while he has his job?
• I can return to UK in winter to declare myself bankrupt but will the mortgage debt be then applied to my partner?
• Mortage co. (Accord) started repossession - we are happy to see back of property and realise that repossession is inevitable. In meantime, mortgage arrears are increasing, will this stop if we volunteer repossession? How do we do this?

Sorry this is all a bit messy, but life usually is. My partner wants to come live in Spain but all this debt is stopping him. I foolishly thought I could leave the country and leave my debt behind but I am hounded by all the creditors and need to get rid of them all by going bankrupt but son't want to make it any harder for my partner. Worried that if the court make him pay toward debts he will not be able to fly over to visit me as he does now monthly. I know it seems like I want to eat and keep my cake but it has got so out of hand now we just don't know what to do. Please can anyone help?

Shazza

IF

Hi Shazza and Welcome, I'm not sure about some of your questions but I'm sure others will advise further in the meantime make a list of all your creditors, debts and assets.
Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x


Please click on Blue links below.


For ‘essential’ info this is Fermi’s sticky at top of the forum:-


http://forums.moneysavingexpert.com/showthread.html?t=1056083


These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/


More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083


And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

Flyright

The debt in your mother's name cannot be included in the bankruptcy, this will remain your mother's debt to pay. It may be that you cannot declare bankruptcy in the UK if you are resident in Spain.

shazzab123

Hi If...

Thanks for the advice, I am not rushing things as I have been looking for advice on this for months. I have consulted an agency who deals with the bankruptcy for me but get the feeling that they might be trying to simplify things a bit. I have tried the links you sent me but as I currently live abroad they can't help me. Can you give any advice on my idea to voluntarily give the keys back on my house and maybe a good thread to read on this. Also - if we do this, do the mortgage arrears stop building? there is no way we can pay them already without incurring more. the sooner the house has gone from us the better. It has been like a mill stone since the purchase and we just want rid in the fastest and most cost effective way possible.

dancingfairy

O.k the loan in your mothers name - well that's up to you to sort out between you really (you going bankrupt shouldn't affect that) although it might alter how much money you have to pay your mum's loan.
Is the house in joint names?
I'm not sure how long mortgage arears build for? at some point the mortgage company will sell the house and you will become liable for any shortfall unless you go bankrupt. I'm not sure how it works if one partner goes bankrupt but normally joint debts fall to the other person so maybe the mortgage arrears would fall to him?
How long have you been in Spain? I'm surprised that none of the debt charities can help? I would have thought you can either apply at a county court local to where you last lived (Depending on how long you've been abroad) or maybe the High Court if you are considered a British Citizen (just woking abroad for now).

Regarding your partner going bankrupt - the OR will look into how much he earns and how much his expenses are for certain things and if he has a surplus of more than 100 pounds then he will be expected to pay some of that to the OR for a period of time - although not sure how that would work if he then goes abroad.
I really think you need to try all of the debt charities - surely someone can help you?
Good luck trying to sort it all out.
df

shazzab123

OK I have now read all the info from the National Debtline site which was very helpful and has given me some hope. I have written to the solicitor acting for the mortgage company asking them to delay repossion proceedings until I return to the UK in Oct. Yes I know not very likely but I am trying. Until then I will try to find a way to keep the property. I am thinking re-let it to cover the mortgage payments then work on the arrears. In the meantime I have found this ad in the paper fro Spencer Hayes about "writing off" up to 70% of debt over £12,001, does anyone know if this should be avoided?? I am worried about it being too good to be true. If it seems like it is then it usually is!

dancingfairy

You've already answered your own question - if it seems to be good to be true it is.
They are probably offering one of the following options:
1) an IVA
2) a dmp with writing to your companies with full and final settlement offers (a dmp you can do through a free charity if it is the best option for you and the settlement offers you can negotiate yourself - see the debt free wannabe board
3) checking the enforceability of the debt - before 2007 a lot of credit agreements were badly worded and did not fulfill legal criteria and as such are not worth the paper they are written on - also some companies do not follow correct procedures and issue default notices etc in the way they are meant to or again they may not be worded correctly. Have a look on the debt free wannabe board and have a look at enforceability if this is something you are considering - agiain you can do this yourself for the cost of a few stamps and envelopes. If the debt is unenforceable
then the companies can't chase you for the debt.
4) the other thing they may be offering is to check whether the debts are statute barred - again there are threads on this on the debt free wannabe board - basically if a set time period (6 years in England I think) has passed when you have not paid anything towards a debt or written to the creditors regarding the debt and the creditor has not obtained a CCJ then the debt is statute barred - it still technically exists but the creditor is not allowed to chase you for it.
Hope this helps but basically I would not pay this company (or any other) any money.
df

shazzab123

Thanks a lot for that. Thought as much but was just checking in case a miracle answer to our problems was availabe. Of course not! Since posting I have emailed the soliitors who is dealing with the arrears advising I will be back in UK from mid Oct and will they hold until then and that I do not have a reliable postal address abroad but can contact me on a correspondence address. They clearly did not read the email properly as they wrote back saying that they will not wait and that they will not discuss it with me until I have provided my residential address in UK. Bit unreasonable I thought? Is there any way I can get them to wait until my return to discuss this, the arrears are approx £3,000.