Bankruptcy Advice needed

makingendsmeet_2

I would have posted this in the Bankruptcy supporters thread but it is getting quite big now and I'm struggling to follow it. I know bankruptcy is my best option as Im paying back £27k and rising with charges and intrest on a DMP at £100 per month and to be honest I am very unlikely to be able to raise that amount in the next few years. So at this rate I will be debt free by 2029.

Anyway I have a question regarding my house in bankruptcy. I purchased it 5 months ago on a shared ownership scheme with a housing association so there is no equity in the property at all.I also had a 100% mortgage. The house is solely in my name. Is it standard practice for the OR to let someone buy the house back for me for £1 plus fees or can he/she decieded not to let this happen? Also my wife is a bankrupt (gettingitsorted) and it looks like she will be discharged in early FEB. After this time can she buy our my benificual intrest as she is no longer a bankrupt? Also I ned to save for the fees at the moment I am paying Paypaln £100 per month if I stop this arrangement and save that money for the next few months what is the worse my creditors can do, all I can think of is a charging order/CCJ which will obviously be written off in bankcrupty anyway

smokey112

I had no equity in my home and I had to pay £500 to our Trustee for him for the beneficial interest.

You will generally find that if there is no equity then some sort of nominal payment is made by a 3rd party - although I am not sure about the shared ownership side of things

If you are intending to go BR then I would stop paying Payplan and use that for the fees - or send them £1 token payments.

makingendsmeet_2

I think the shared ownership thing would go in my favour as I only have intrest in 25% of the house the other 75% belongs to the HA.

rog2

Hi MiM - Once your wife is discharged from bankruptcy there is nothing to prevent her from buying your 'beneficial interest' in the house. She will be totally free from the limitations of bankruptcy.
As you say, there really isn't a lot that your creditors can do if you stop paying now. I was advised to stop paying anything, once I received my bankruptcy petition, as this could be viewed as giving 'preference' to certain creditors.
Your credit rating is going to be zero for the next 6 years anyway - so I would use the money, that you would otherwise have paid, towards your br fees.
Good luck, and you are still welcome to post on the Bankruptcy Club as well.
Rog2