Hi everyone

Laureb

Im currently trying to help my partner with his impending bankruptcy, he will be printing off the forms tomorrow and we will be filling them in tmoz nite.
Im really nervous that the judge will not allow him to go bankrupt, plus we still havent managed to gather the fees together to actually go bankrupt yet!How insolvent people are expected to find £700 ill never know!!!
He owes around £15,000 in credit cards and £25,000 in loans, he has a joint mortgage which is in negative equity, it would be such a relief if he can be relieved of these. The only problem is he has other debts to his family which will see have to be paid, he owes about £40,000 to a member of his family which we will never escape... :-(
Its crazy, we have nothing to live off, so i am just praying for his bankruptcy to be allowed. I dont know how common it is for the judge to refuse?

IF

Hi Laureb and Welcome to the BR Board. Your partner won't be refused BR if you are Insolvent and the general rule is that you must have taken advice, that can be from the debt charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences. On his form has he named the member of his family as a creditor??

Best wishes

If...x

Laureb

Thanks for your reply, he will be named as a creditor So after the bankruptcy I'm imagining that the OR will have to include this debt when working out where his wages will go, we can't get rid of that debt as the family member needs the money to pay his mortgage.
It works out to around £400 that is owed to him each month.

silvercar

Have you taken advice?

I don't know if bankruptcy would achieve the result you are looking for. Others can advice more, but 2 important points.

1. A mortgage shortfall isn't included in bankruptcy until the property is repossessed or sold, so the mortgage would still expect to be paid. ( though choosing not to pay and allowing repo is an option).

2. Once bankrupt you are not allowed to prioritise one creditor over another, so there is no way you can pay family debts and not others. The OR will divide any money he secures from the bankrupt to each creditor in proportion to the size of their debt, so each creditor won't get the full amount. In the meantime (before an IPA is set up) the creditors get nothing and the bankrupt is not allowed to give any money to creditors. The family would need to understand this.

fermi

You are not allowed to continue paying a bankruptcy debt after you have gone BR. The OR will not allow you any room in his budget to do this.

Was the loan to just him or both of you? If joint, could you pay the money from your income? If not, and this is something you simply can't stop paying, then you may need to rethink.

Laureb

I've just found out that he won't be able to be paid the money he is owed, therefore my partner won't be able to file for bankruptcy and all the work we have done has been for nothing,the family member uses it to pay his mortgage and a credit card he got out in my partners name,he remortgaged his house in order to help my partner out of debt years ago and won't be able to pay his mortgage without regular payments to him. I feel so rubbish,it just seems hopeless.

leighblue

I am in a very similar predicament - a family member remortgaged their house to help our business and I want to keep paying that debt whilst br.

A couple of ideas are firstly, do your calculations for outgoings and then check 'allowable' amounts for these to see if you can squeeze some income out without paying into an IPA. Although rent, utility bills etc is pretty much fixed, you can claim for haircuts, pocket money, dry cleaning, newspapers etc etc that may be at a far higher rate than you actually use. By claiming the maximum allowable amount rather than your expenditure you may be able to put something towards this mortgage.

If this doesn't work, or provide enough money, you could try saving up 12 months mortgage payment (assuming a 12mnth BR) and give this money to the person to pay their mortgage. I appreciate saving £4800 might be very hard, but not impossible. It may delay your BR but not for ever.

BTW I managed to save about £235 towards the mortgage I have to pay in BR by claiming maximums rather than actual expenditure and am virtually there with giving the relative advance payments to cover the shortfall