The Bankruptcy Club & Supporters Club

sandralovescats

I haven't come across that question. I don't mean to worry you but have you checked the https://www.insolvency.gov.uk website for the latest version?

I can't help you with your question but having a look at the official site might help you out.

Good Luck on 3/11

sarah_skint

Baring a win on the Lottery - I will almost certainly be going bankrupt in Jan/Feb. I have found your site very helpful - could I join You?
David

welcome david, and ask away - sounds like the time i will be going br too.

LOL with capital one, i had that with mint ringing all the time, got to the stage when as soon as it rang i picked it up and said is that mint again?? reply oh yes is that miss sarah xxxxxxx, i said yes and shes busy and put the phone down again, now all i get are emails and statements, although they are due pro rata payments today ooops, so phone calls tommorrow!!!!

larakane

I have had Bankruptcy proceedings issued against me and am due to go to Court on 30th November at 11:00am at Reading County Court.

I am really finding it hard to get my head round the whole thing and to top it off have now been informed that I may have to do an IVA as I will have about £9k from the sale of my house mid November and they might not "let" me go bankrupt.

I am on benefits and my total unsecured debt is £28k. All of this debt is more than 4 years old from a time when I was working and earning well but spending it like it was going out of fashion. My own fault but ADHD and severe depression = spendaholic.

It is hard enough to have to accept that the house has to be sold - and that it is only fair to sell prior to the bankruptcy so OH does not get embroiled in the Official Receiver and having to pay whole mortgage without me being able to help at all.

I feel like either making another cup of tea or getting completely plastered and running away somewhere far away. Have a constant sick feeling in the pit of my stomach and don't know really where to turn.

Kids and me are off to B&B courtesy of the local authority and then who knows - grateful that they will house me after the sorry mess I have created. Do I qualify for a number and will someone please give me some more things to tell my 5 year old son when he wants to know where his new house is. "It's a surprise sweetheart" is wearing a bit thin now.

sandralovescats

Hi Larakane,

If you are going to be made bankrupt all of your debts will go with you - there will be no such thing as "having to do an IVA". The whole of your debt will go - disappear into thin air.

If the house is in joint names you are not allowed to sell your house prior to bankruptcy - the proceeds of the house will be taken. Even if the house is in OH name, the OR will deem that you have an interest in the property and will most likely want half of the proceeds of the sale.

You really need some expert advice. Perhaps the CAB can help you with the bankruptcy process? Have you thought about going there?

sandralovescats

larakane wrote:

I have had Bankruptcy proceedings issued against me and am due to go to Court on 30th November at 11:00am at Reading County Court.

I am really finding it hard to get my head round the whole thing and to top it off have now been informed that I may have to do an IVA as I will have about £9k from the sale of my house mid November and they might not "let" me go bankrupt.

I am on benefits and my total unsecured debt is £28k. All of this debt is more than 4 years old from a time when I was working and earning well but spending it like it was going out of fashion. My own fault but ADHD and severe depression = spendaholic.

It is hard enough to have to accept that the house has to be sold - and that it is only fair to sell prior to the bankruptcy so OH does not get embroiled in the Official Receiver and having to pay whole mortgage without me being able to help at all.

I feel like either making another cup of tea or getting completely plastered and running away somewhere far away. Have a constant sick feeling in the pit of my stomach and don't know really where to turn.

Kids and me are off to B&B courtesy of the local authority and then who knows - grateful that they will house me after the sorry mess I have created. Do I qualify for a number and will someone please give me some more things to tell my 5 year old son when he wants to know where his new house is. "It's a surprise sweetheart" is wearing a bit thin now.

More info for you re the house:

"There seems to be a lot of confusion over how houses are dealt with in bankruptcy, and a common misconception that you will automatically lose your house because of a bankruptcy order. This isn't the case.

First of all, you need to work out what equity in the property ( likely sale value less any mortgages + secured lending ) - if there is a surplus, then you need to do some working out.

If the property is jointly owned, you only have a 'beneficial interest' in the portion attributed to you. Generally this would be half ( if you owned it with one other person ) or a third ( if you owned it with two others etc ). Where there is a surplus, the other owners, or a generous third party ( parents, friends, relatives etc ) have the option of buying your BI from the OR. Once discharged, you can buy this back from them etc, although short term it protects your house.

If you have negative equity or there is no surplus ( ie house worth 100k, mortgage of 100k ), you can buy the BI for a nominal sum and would be liable for your and the OR's legal costs, which would be likely in the region of £ 500.

As far as timing goes, where the property is jointly owned, the other owners have 12 months priority to arrange to buy your BI from the OR. As it is likely that your case would be passed from the OR to a Trustee ( usually a Commercial Insolvency Practitioner ) there is a degree of time allowed whilst it is transferred etc.

If you do have substantial equity in the property, if only one of you are going bankrupt, or the house is in sole ownership, or are unlikely to be able to have your BI bought out by a friend / relative, you may be better off looking at an IVA or remortgage."

Try the insolvency site as it has details on your home too.
Hope this helps.

milly_rhys

can someone please give me some advice please ?

i am on benefits yes alot of benefits some people think but still doesnt seem much whne u have outgoings. can they tak eany excess income if it is benefits???

i done a soa the otherday and people said i had lots of surplus income , CAB and CCCS both advise bankrupt as i have nearly 38k of debt and am on benefits
, at the min i am paying a pound a month cab have sent out offers some agreed some not . the problems i have is that although i may have some surplus cash i would not want them to take it as i have 2 members of family that i wish to pay what i owe them .

i also have 2 rings that are insured on my house insurance one is my engagement ring worth £3,500 i do not want to loose this as i say it was an engagement ring and the other is worth 2,500 that was bought for me for my 21st although i know these are assets but they are more sentimental than value if it was value iwould have sold them along time ago believe me , i know they do not come into your home and check assests but what would happen as they are on my insurance. i do know someone in a similar situtaion that said they had pawned them and forgot to cancel the insurance and they let her off i know this is dishonest but i really do not want to loose them what can i do ???

i want to buy my home in the future but i wouldn't be able to with this debt hanging over me , am i best to go bankrupt and start a fresh for the future or do i try and pay them off based on £5 amonth it would take me 63 years to pay it all off what do u suggest??????

milly

sandralovescats

First of all no IPA payments would be taken when your only income is benefits.

As for your rings, whilst it is not legal, I would probably go the same way as you suggested.

Buying your own home post bankruptcy may pose a problem for you. Yes, you would be able to get a mortgage, on an horrendously high interest rate, but they usually ask for 25% as a deposit.

Surely it is more important for you to be rid of your debts in the first place?
Maybe you would be able to buy a house on the scheme 50/50 where half of the money is taken as rent, the other half towards the purchase of your home? I don't know more about it than that.

Perhaps it would be a good idea if you listed a Statement of Affairs on the board - incomings and outgoings to see where we could help you out with your budgeting, and take it from there.

milly_rhys

to be honest i know the areas i can cut down but if im absolutly honest i dont want to go bankrupt and be worrying about what i spend on treats" lik emy sky obviously i will stay within my means which i havent in the past and i will not be gambling like i was in the past i want to go bankrupt so that i can start a fresh and try and save for things like xmas and not get loans or buy from catalogues like i have in the past my monthly living is ok for my buget it has been the extras like shopping and gambling through grief that have got me into this hole, sorry i dont want u to think im saying get lost i dont want your help because i dont mean to come across like that .

can i ask if i have say £400 left after i pay out what i need to even though im on benefits would they take that ???? or would that be mine?

sarah_skint

it has been the extras like shopping and gambling through grief that have got me into this hole

Hi - Please stick around we are all here to help and support you!
Your quote sounds like something i would say, although my debts are nearly all through gambling - it was the only thing that would block out pain/anger, so I know where you are coming from.
Sarah

if you read through this post sandralovescats put up a post on surplus money and what you would have to give each month - may be worth searching for.

sandralovescats

If you go back up this thread a few pages you will find the IPA chart that I posted a day or two ago. That will tell you what the repayments would be on £400 surplus.

If you go bankrupt, you have no choice in whether you keep x, y, or z, that decision will be made for you. Normally Sky is not allowed at all but you would only lose it for the duration of the IPA, which is 36 months, that is if they give you an IPA. As I said earlier, IPA's will not be given when your sole source of income is State Benefits. You would not have anything to pay at all, the OR would not take the excess away from you.

One more thing, you have to declare money that you lost through gambling it away.