Voluntary Repossession and Bankruptcy help please!

sarahlouise1979

Hi,
I will try and keep this brief!
Live in shared ownership flat, it's on the market (can't rent it out as shared ownership), for £58k (my half). Mortgage outstanding is £64k, so in negative equity.

Have decided to give the keys back as I need to get rid of it ASAP (moving in with partner) and I have other unsecured debts of around £18k, then I will probably go bankrupt.

Have a few questions regarding all of this, hope someone can help please:
What is the actual procedure for handing the keys in? Am I ok to sign paperwork to say that I'm handing it over and that I will be liabe for the shortfall? (as i won't yet have gone bankrupt)

Can i file for bankruptcy straight away after handing keys back?

I will be moving in with my partner, and paying him towards mortgage, bills etc, are we ok to split all the bills roughly in half and I pay him a set amount per month?

What are the maximum allowances for things like petrol and food?

What about the fact that my car is fairly old, what amount can I put in my SOA to cover car maintenance?? And what if the car dies?! If all my income is accounted for, how can I replace my car?

Think that's everything for now!

sniggings

sarahlouise1979 wrote: »

Hi,
I will try and keep this brief!
Live in shared ownership flat, it's on the market (can't rent it out as shared ownership), for £58k (my half). Mortgage outstanding is £64k, so in negative equity.

Have decided to give the keys back as I need to get rid of it ASAP (moving in with partner) and I have other unsecured debts of around £18k, then I will probably go bankrupt.

Have a few questions regarding all of this, hope someone can help please:
What is the actual procedure for handing the keys in? Am I ok to sign paperwork to say that I'm handing it over and that I will be liabe for the shortfall? (as i won't yet have gone bankrupt)

Can i file for bankruptcy straight away after handing keys back?

I will be moving in with my partner, and paying him towards mortgage, bills etc, are we ok to split all the bills roughly in half and I pay him a set amount per month?yes but as you are BR if you have any shared (linked) debts loans bank acounts etc then your BR will show on their credit report,so handing them money is fine but don't share any acounts etc

What are the maximum allowances for things like petrol and food?food I put about £40-50 a week the OR can soonlower it if they think it's too high but try that,petrol is any amount you can show you need for work school etc not just for caring around though you need to show you need it.

What about the fact that my car is fairly old, what amount can I put in my SOA to cover car maintenance?? And what if the car dies?! If all my income is accounted for, how can I replace my car?insurence and tax etc are different from maintenance that is not alot,I put about £20 a month,if the car dies you pay for it,remember you will have no debts now so your in the same boat as everyone else.

Think that's everything for now!

don't know about the house but hope this helps

National_Debtline

Hello there.

Technically you are able to file for bankruptcy whenever you would like. As the mortgage was taken out prior to to the date of the bankruptcy order any shortfall that arises from you handing back your keys will be included. What is very important is to never sign a 'deed of acknowledgement' stating that you would liable for the shortfall - these are sometimes presented to the debtor to be signed AFTER the bankruptcy date which could allow you to be chased again.

Make sure that you list the mortgage within section 4 of the bankruptcy petition.

Hope this helps!

fermi

sarahlouise1979 wrote: »

What is the actual procedure for handing the keys in? Am I ok to sign paperwork to say that I'm handing it over and that I will be liabe for the shortfall? (as i won't yet have gone bankrupt)

In theory, yes. As any subsequent bankruptcy nullifies that.

In practice always take advice before you do so.

sarahlouise1979

Thanks for the replies.

I had an interview with a CCCS advisor on tuesday, and we went through my SOA, but that was based on my current situation (ie, living in my flat, paying mortagage etc). I need to call back with figures for when I move in with my partner. But I was doing a bit of reading on here and it seems that when living with a partner you have to include their income on the SOA-why???? What if it was just a friend or someone I was lodging with, would I have to then? Confused!:o

SteveABC

sarahlouise1979 wrote: »

Thanks for the replies.

I had an interview with a CCCS advisor on tuesday, and we went through my SOA, but that was based on my current situation (ie, living in my flat, paying mortagage etc). I need to call back with figures for when I move in with my partner. But I was doing a bit of reading on here and it seems that when living with a partner you have to include their income on the SOA-why???? What if it was just a friend or someone I was lodging with, would I have to then? Confused!:o

Yes, I believe you do. When I went through my income/expenditure with the OR, the income of my two sons (both over 18) was taken into consideration, as they were expected to make a contribution to household costs (rent, council tax, water, fuel etc. etc.).

When calculating the IPA, the OR didn't actually take their income into account directly, but reduced the amount I was allowed for rent etc (as above), as they were expected to make a contribution (even though they are both on a basic income - state benefits).

I think it was 15% each for them for the shared costs (so I was only allowed 70% of my rent, council tax etc etc.). For a partner, I believe they may expect the partner to contribute 50% to the shared costs, which would reduce what you were allowed for them by the other 50%.

I'm no expert, but this was what happened with my IPA calculation.

Hope you get the answers you need.

Ineedaname

If you are in a formal houseshare or lodging with someone then you do not have to provide their income details, only your income and the amounts you pay towards the bills, i.e. house share with one person would mean you put down 50% of the cost of rent/bills but all that you pay for food as you would be expected to feed yourself and not necessarily share those costs.

If you rent a room from someone then the rental figure usually includes all bills so you just declare what you pay and any other expenditure you have again, such as groceries, telephone, transport etc.

If you are the main occupier and have a lodger renting from you then you would need to include what they pay you as part of your income.

sarahlouise1979

Thanks for your help guys

I have just spoken with the National Debtline regarding the need to provide my partners income details etc, and the man I spoke with said that the OR probably will want to know as to make sure that I'm not paying a disproportinate (sp??) amount towards the bills etc. But... would I be ok to pay half towards everything even if my partner earns more than me? As that was what we were planning to do!

sniggings

sarahlouise1979 wrote: »

Thanks for your help guys

I have just spoken with the National Debtline regarding the need to provide my partners income details etc, and the man I spoke with said that the OR probably will want to know as to make sure that I'm not paying a disproportinate (sp??) amount towards the bills etc. But... would I be ok to pay half towards everything even if my partner earns more than me? As that was what we were planning to do!

yes,it's only a fair share they expect,just so you're not seen as supporting someone else.