Trusts and BR

dojoman

I may be wrong (often am) but if the trust is not yet set up, and you know you are going BR then I would imagine the OR will be able come after it.

Gemlou26

dojoman wrote: »

I may be wrong (often am) but if the trust is not yet set up, and you know you are going BR then I would imagine the OR will be able come after it.

That does make sense, I would imagine it is correct, or least they will have a good go at trying.

dmg24

Gemlou26 wrote: »

That does make sense, I would imagine it is correct, or least they will have a good go at trying.

As they should, in order to protect both the lenders and the rest of us who inevitably pay for the debts of others.

silvercar

timpe wrote: »

I figured somebody might bite my head off about this. Possibly rightly so. Maybe I wrote my question wrongly originally. I don't have the 120K personally. My family don't particularly want to see 40k (or less say if I came to an agreement with creditors say) going down the plug hole of my debts. I am currently on the dole with debt collectors drawing in. I may not seem to be in the same position of others on here going BR but I have child and partner and am seriously struggling to get by. I'm not particularly keen on giving a company more money that ruined my business by making 100K out of me a year leaving me with nothing who now want even more money out of me now it's gone bust. Call me old fashioned but I'd rather not pay them a penny more.

You need to consider whether the impact of bankruptcy on your future will be greater than losing whatever is necessary to pay off your creditors. As you say, it could be less than 40k.

Lets say in the next 5 years you want a mortgage. As a bankrupt you will be looking at sub prime mortgage rate with a large deposit. That could cost you an extra 2% on the interest rate each year.

It could also effect your car insurance and house insurance etc

JCS1

Something to consider:

• An IP would likely be appointed to see if the trust could be overturned (I'm not sure if they can or not, so seek more advice on this). If if was, they would get the debts paid in full and also would get their fees paid too. So from owing £40k, it would likely go up to £50k plus with fees and costs, so you would end up with £70k rather than £80k
• You could consider using some of the money in the Trust to do full and final settlements to your creditors. I think they usually settle for 50-75% of the debt though it varies from creditor to creditot, so you could clear £40k of debt with £20-30k leaving you with £90-100k.

timpe

dmg24 wrote: »

As they should, in order to protect both the lenders and the rest of us who inevitably pay for the debts of others.

Is that a dig a me?

I thought "This Board Is For Help Not Judgement"?

philnicandamy

Ignore DMG's "issues"......;)

debtinfo

ok leaving all moral issues aside which i wont comment on, a couple of points

Look at JCS's post, the only thing i disagree on is that if it could be overturned then i think the fees would be alot higher and you could end up paying £100K all told.

At the moment as i understand it you have not inherited so it is not your money, it is still theirs, they can leave it to who they want to, so that begs the question if they dont want it to go to your debts why dont they just cut you out of the will completely, if they survive to the end of the mortgage they could always change it back then, it takes the uncertainty out of it

timpe

Thanks for the feedback guys. We're going back to the family solicitor to double check stuff. Like you say it may be safest just to arrange the inheritance for after my BR