Bankruptcy Petition Received - Mixed Emotion

rog2

Richard_S wrote:

Hi Rog,

Equitable interest in a property does get involved and it is affected by children being resident in the house although I think this only relates to the time scale you're allowed to sell the property. If any of the children were contributing to the mortgage that could work in your favour. Do you have a wife or partner who has a legal claim on the property or is named on the mortgage?

Rich

Sorry, I didn't make myself very clear - The house is in joint name (self and wife). We don't, possibly unfortunately, have a mortgage as we finished paying over 10 years age (lived in same house for 30 years).
As I understand it OR will be entitled to request that I sell MY equity in the house, to go towards BR debt. My question, hopefully better phrased, is 'What effect, if any, will the fact that I have grown up children still living in the house, have on the %age of my equity in the house?'
The reason I ask this is that when I applied, several years ago' for a secured bank loan (now paid off) the Bank (HSBC) told me that, as my son was over 18, he would be considered as having equity in the house, and I had to get him to sign the application form as well.
Another suggestion, raised by CAB, was that I get my son to buy my equity share. I am pursuing this, but, if he is unwilling, or unable, to do so, what other options remain open to me?
Cheers

anniestar

rog2, nothing useful to add just wanted to voice my support to you. You have been such a help to me and just want to say thank you and good luck to you and your family.

sgx.saint

Firstly I just wanted to say "Good Luck" with it all and I am sure that everything happens for a reason and in the end everything will work out ok.

May I ask why you think it got to this stage? i.e. The Creditors Petitioning, rather than say you deciding to declare BR yourself.

Were you unable to make any repayments? Or was it just the sheer level of debt?

I am just trying to understand why the Creditors took this action as most times it isn't in their interests. Unless you have lots of assets etc.

I know that if it ever happened to me I would ask the court to throw it out based on the fact I am willing to repay it all and that I also have no assets.

Btw, I am not trying to suggest that you have done anything wrong, I hope I am not coming across the wrong way ... As I say, I just want to understand the creditors viewpoint.

Richard_S

rog2 wrote:

Another suggestion, raised by CAB, was that I get my son to buy my equity share. I am pursuing this, but, if he is unwilling, or unable, to do so, what other options remain open to me?
Cheers

I know you maybe don't feel it at the moment Rog but you're not in that bad a situation. You should be able to stay in your family home (if you want to) and if you decide to sell then you should have enough money to put down as a deposit on a new house.

You have a number of options open to you and it seems fairly certain that your children will have an equitable interest that should limit the scope of action by the OR. I'm certain that when you have your interview the OR will explain your options but if I was you I'd want to be 100% certain that I knew exactly what my options are, and a solicitor is probably the best source.

I don't know how old you are but I assume that if you've already paid off one mortgage then you're probably mid forties to fifties and the prospect of paying another is not very appealing. Given that you've still got children at home it doesn't seem unrealistic that one way or another they should contribute something towards the mortgage.

rog2

sgx.saint wrote:

May I ask why you think it got to this stage? i.e. The Creditors Petitioning, rather than say you deciding to declare BR yourself.

Were you unable to make any repayments? Or was it just the sheer level of debt?

I know that if it ever happened to me I would ask the court to throw it out based on the fact I am willing to repay it all and that I also have no assets.

Sorry for late reply - had to go out.
Thanks for your interest - very quick reply as I really didn't want to play the 'sympathy' card. Yes I was managing my debts, till the money literally dried up. HMRC had obtained a CCJ, based on an assessed return. Tried to get correct return done, but could not get it done on time, as I could not find a friendly accountant (willing to wait for payment). HMRC would not accept any offer of instalments and issued statutory demand, followed by bankruptcy service.
HMRC, unlike other creditors, are not concerned about whether you have sufficient assets to cover your debt or not - they are, by far, responsible for most creditor initiated bankruptcies in the UK (either Inland Revenue or Customs and Excise) and, once they have stamped my piece of paper, they will, in the true spirit of the civil service, simply move on to the next one.
In a way, they have probably done me a bit of a favour, in that I had just got to the stage where I could no longer service my other debts, and didn't have sufficient cash to initiate my own BR petition.
Some irony in that I had just found a chartered accountant, who was prepared to put my accounts in order - she has started, but is not sure that she will even be finished before my hearing.
Basically CAB said it was probably not worth doing, as it would make no difference to the case - may still do it, because HMRC assessment would mean that I drew over £100k from a business that turned over £54k.

Mike_St_Helens

Ha.. Thats similar to me..... They are insistant little fellows at the HRMC arnt they !

Funny thing is Rog, this afternoon after we finished talking here... Knock at the door.. Only an official stat demand from a creditor.. They want to make us bankrupt !!

Id rather do it myself, I know there is no pride in it, but this way I know its my doing, and no one has made ME bankrupt but myself..

rog2

Mike_St_Helens wrote:

Funny thing is Rog, this afternoon after we finished talking here... Knock at the door.. Only an official stat demand from a creditor.. They want to make us bankrupt !! ..

Nice one Mike - I bet that, even after your own hearing, you will still receieve a petition from them:rolleyes: :rolleyes:

Mike_St_Helens

rog2 wrote:

Nice one Mike - I bet that, even after your own hearing, you will still receieve a petition from them:rolleyes: :rolleyes:

Let em !!

let battle commence !

earwig

Mike_St_Helens wrote:

Ha.. Thats similar to me..... They are insistant little fellows at the HRMC arnt they !

Funny thing is Rog, this afternoon after we finished talking here... Knock at the door.. Only an official stat demand from a creditor.. They want to make us bankrupt !!

Id rather do it myself, I know there is no pride in it, but this way I know its my doing, and no one has made ME bankrupt but myself..

mike
if they wanted to make you bankrupt dose it mean they would have to pay the court cost and not you

Mike_St_Helens

earwig wrote:

mike
if they wanted to make you bankrupt dose it mean they would have to pay the court cost and not you

yep.. They are saying effectivkey they will pay.. But as we are a partnership id rather sod them and do it myself. We need to be together through this.