Thinking I need to go bankrupt

thewilf

Hello all,

I have been trying to sort out my debts etc... by paying off various creditors on arrangements. I currently have agreed £145 in CCJ for 18k of debt but still have another 16k that I can’t afford payments for, especially since my partner who was helping pay has moved out with our 15month old daughter.

We wanted to sell before but were struggling since apartment is in negative equity and has the 18k against it in charging orders so cannot afford the estate agent and solicitor fees let alone redeem the mortgage.

I am now looking at bankruptcy so that I can start making headway on my debts and also get rid of this apartment. In my area I pay more in mortgage and rent (its shared ownership) than I would pay to rent a 3 bed house, what we need as a family. I understand that I will have to pay into my bankruptcy for 3 years after I apply before I am discharged? But it seems like the only way to get out of the apartment and pay off my debts (10yrs approx on a dmp).

Does this sound like the right solution to you guys? Also can I guarantee that my apartment will get sold if I go bankrupt? Has anyone here had any experience at renting as someone who has gone bankrupt, will I be able to rent a house? I have always paid my mortgage and rent it’s just the unsecured debts I am struggling with, will this help with renting or will I just get told to get lost?

Thanks for your help in advance

Cheers

Will

Ineedaname

I'll let someone else answer the specific queries.

Can I just clarify though the size of your family? You say your wife has moved out with your 15 month old. Is this a permanent arrangement and do you have any other kids?

I'm only asking as for a family with one child you would only need a two bed property, so renting would be even cheaper.

NeverAgain_2

...I am now looking at bankruptcy so that I can start making headway on my debts and also get rid of this apartment...

When you go bankrupt all of your debts are included, mortgage and credit cards/other loans etc.

Bankruptcy and renting is a topic in itself, but there is no automatic bar, and if I read your post correctly, you will be renting with your partner, so her non-bankrupt status may help the pair of you get a property.

thewilf

Hi,

I would be happy with a 2 bed house, the main thing is I am hoping to get back with my partner and we would like to have a house rather than apartment just as its not practical at times, no garden etc...

Thats good, so I how does the process of my house being sold actually work, will the just give me notice that it will be auctioned on ... date and I need to be out by then giving me time to find a house?

Thanks again
Will

dojoman

Have you taken any advice from the debt charities about BR?



https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/

tigerfeet2006

As Dojo says get in touch with one of the debt charities and if they suggest you need to go BR then you need to stop paying your mortgage, any secured loans and any debts. Carry on paying priority debts such' as council tax, utilities etc.

Save the money from the mortgage, SL's and debts for the deposit, rental, moving costs and BR fees. Move house and declare BR.

When you move out you can write a letter to the mortgage co. enclosing the keys saying you want it repo'd, send it recorded delivery. They may start proceeding then or they may be awkward and go all the way to court but that isn't a problem and you just go with it. Just don't sign anything from them.

When you move out, take meter readings and inform the utilities of the readings and the fact you are moving out. Take time stamped photos of the readings if possible. Inform the council as well.

The mortgage and SL's will not go into your BR when you first go BR as they are still secured but when the house is sold any shortfall will then fall into your BR,even if you are discharged.

Any joint debts then your OH will then be responsible for the whole amount when you go BR.

Sort out the Co-op Cashminder account or Barclays Cashcard account when you can to get all your DD's etc sorted and in order with no debts.

Read as many threads on here as you can, starting with the Bankruptcy Help sticky, ask questions and read threads, ask and read and get knowledgeable.

Ineedaname

This thread about council tax exemption for the empty property is also very useful.

thewilf

Hi, sorry been busy with work etc...

So if I'm right, my charging orders on property from ccj will automatically become part of my bankruptcy when the house is sold? Will this extend my payments if I'm discharged or will the payments still go on for a further period?

Also when is the best time to go bankrupt? Just before or after payday etc...? I will not have enough in one months mortgage and rent payments for bankruptcy and deposit etc... Is it possible to miss multiple payments, like two months and whenthey phone up and ask where is money just say I'm going bankrupt and moving out will confirm date I will be posting keys back soon?

Cheers for you help

Will

freddy911

Just to clarify a few points,

First you will have nothing to do with the disposal of the house, you need to move out, stop paying the mortgage and any secured loans and have it repossesd, only when its repossed can it be included in BR. Make sure you dont sign anything taking responsibility for any short fall.

Secondly your right that you will pay into BR for 36 months from the agreement of an IPA (if you can afford it) but you will be discharged after 12 months, maybe earlier if the OR sees fit and he dosent suspect anything untoward.

Yes you can miss payments, its important that you stop paying everyone atonce so as not to profer a creditor, be carefull what you do with the money as you will have to account for it.

Hope this helps.

kepar

One question is the mortgage in just your name or both of you?

thewilf

So if I stop paying all debts inc mortgage etc... and keep that money and at the end that adds up to the br fees and deposit and rent upfront for new rental property that's fine? Also the assessment of income for the ipo is reviewed, who decides whether this is up until discharged or until of ipo?
Cheers
Will