Trying to make a final decisions on Bankrutcy and future housing!!!

csfts

Does anyone know if you have to know the exact figures of debt when you go for bankruptcy? My statments from the DMP just before we stoped it and those recently sent direct to me differ by quite a bit, some creditors havent sent anything as yet and I really dont want to phone them all for exact figures...but guess I may have to ;0(

Maizy

We just ignored the phone calls but they were insessent and it was a drain but we knew we had to go through it. We unplugged the home phone and only answered mobile calls we knew, kept phone on silent at work as it went off all day. A day or so after BR it all stopped, well almost and the odd call we took, we gave our BR details and they never called again, were really fiendly too. Don't forget this is very common these days.

We were advised not to put ourselves in a position of homelessness as there was no guarantees the council could re-house us within any given timescale. There are stories of families in B & B's for many a month until housed but that could be few and far between, not really sure, hopefully you will get your answer. Luckily we put our names on the list years ago when we started to struggle, and boy are we glad we did. We may get offered a house over the next year but for now we are just glad to be out of the whole mess and have a nice roof over ours and the kids heads which we do feel is home.

Ps, you dont need exact figures to the penny, just as near as the OR contacts them all anyhow. Our figures were on our DMP statement so we just gave those but may well have been out slightly, in fact Im sure they were.

Good luck, it will all come together.

csfts

Thank you again to everyone who has commented it has been really helpful and I hope others will also benefit too!!

As an update we have stopped paying NRAM, secured debt and DMP and are now in a position to pay the costs to rent. We may have found a private landlord, depends on if he likes us when we meet lol...we have been fairly honest, told him we are letting our house be repossessed due to negative equity and that we are on a DMP!

A charity that National Debt line put us onto has offered to pay £1000 towards the cost on bankruptcy, they pay the courts direct!! leaving £400 for us to pay which we will have from 1st June 2012!!

The phone calls are nonstop they make us feel so scared but we know there is a way forward now!! We have not yet actually spoken to NRAM but intend to as soon as we have paid deposits on rented accommodation! or is it better to carry on ignoring them, let the file for repossession in their time rather than on our instruction?

A few things we really need clarification on please after reading around on these posts????

If we take voluntary repossession, give NRAM the keys back and sign the form before we file for bankruptcy, are we still liable for the repossession costs and shortfall???

Will we still have to pay buildings insurance and council tax during either type of repossession???

When exactly do you pay the costs for bankruptcy, before you collect forms or on returning them??

Many Thanks

OutofDebt-NOT-OutofDanger

Hi,

Voluntary repossession is fine as long as you sign the form BEFORE declaring BR, otherwise just let NRAM's legal processes take their course. Any costs and shortfall will then fall into the BR.

Technically you should pay buildings insurance but in practice it is nigh on impossible to insure a building vacated by someone who's BR. Worse case scenario is that the place burns down and NRAM only get a fraction of its value on sale - but it's still only a shortfall on sale!

When you leave the house notify your local council as they can apply a 6 month exemption for council tax as long as all furniture is removed. Once you have the repossession order, send a copy to the council as it is then exempt indefinately.

The costs of BR are paid when you take the forms to the court.

sundays

Im going to pay devils advocate.

And im a bankrupt that has neg equity and has remained in her home, i choose this route because (i dont like the risk of renting, i worked in housing advice for years ) and i like my home , i also beleive you have to be patient and wait and in time neg equity will reduce ,renting gives no assurance what so ever, and rents are rising.

What is the purpose to give up a home and then rent, rent gives you nothing back only a notice to quit in time. BR will have a adverse effect on your future rental opportunities, and you may never get on the mortage ladder again, that may suit.

Just my opinion , and i wish you luck, but you will need to go BR soon as many creditors will follow you around, voluntary repossession v being repossessed , you would have had months in the property before being repossessed and would have saved a sufficient amount to put down for rental and moving costs. Be prepared if you move on again because as a BR you could be asked to put the up the full term for future rental costs if you decide to move on or the landlord asks you to leave.
Make sure your landlord has the relevant safety checks, that the rent is within the local housing allowance levels if you need to claim housing benefit and has placed your deposit in the deposist guarantee scheme.

silvercar

We have an interest onlymortgage/loan of about £122,000 with Northern Rock (NRAM) around £20,000 is asecured loan and £2,000 unsecured all from the original mortgage taken out over7 years ago. Our house is only worth £105,000 if we’re lucky so a huge negativeamount.

If you went bankrupt, the unsecured part of the loan immediately becomes part of the bankruptcy. So you would have the original mortgage and the secured loan. £120k mortgage on a £105k property is not impossible to manage. It would also have the advantage that you would be able to buy back the beneficial interest for very little.

The question to ask yourself is if you could afford the mortgage once all your other debts are written off in bankruptcy.

kepar

Sundays, I see your point, but I will do the same.

Mortgage rates are starting to rise, interest only mortgages are being pulled. How much of a rise can you withstand, you cannot swap lenders, you could end up trapped.

Once rates start to rise , the lenders will continue to do so, they need the money.

Good luck, but you may survive for now but can you survive another 5 years.

Your attitude to renting is poor, we have been renting here for well over 3 years now with no problems. Not all landlords are rogues, as long as you keep paying on time why would they move you on? With house prices staying low, most landlords will not sell unless they need the money.

I don't know how long you have been in your property but if it is in negative equity you are renting the place anyway. If you haven't been there more than at least 7 years your repayments would vutually all be interest only.

So what is the difference renting from a landlord or renting from your lender?

lisa.89

csfts wrote: »

#

Lisa (or anyone else who may know!)
If we can not find one guarantor will they split it with two people willing to help us do you think?

Sorry didnt reply sooner - I believe a guarantor can be just one person.

Hope you secured a property - let us know how you get on xx

sundays

Kepar we often debate this between ourselves and i dont think either of us is right, just what is preferable to us at this given time. My circs in time may change and i might then decide then that for me rental is the option.
I havent rented for over 10 years.

I dont see my property as a investment , i did a few years ago but not now , im very practical of what it can offer esp if i can ride the wave , and financially i can , so for me id rather give it a chance, an d will prob be in it till i physically cant but that is years away ie illness or death (hopefully) , its not being considered for inheritance etc as i have no children etc, so staying in my mortaged home gives me IMO more security.
I wouldnt get a better rental in terms of decor , size, price etc.

From a proffessional capacity i have worked in housing advice and homelessness for years so am perhaps with knowledge one step ahead and have a tad more confidence of protecting myself . I have seen the lenders in the past be aggressive , id say with the collasped mortage market , prob in todays market many are a lot better than previously and with various protocols there is more protection to those facing repossession esp with children or other form of vulernability - i in fact dont fall into those groups so would be the easy one to evict.
Ive been in arrears so am aware of how easy it is to lose a property.
With the many changes coming ie universal credit, benefit caps, bedroom taxes, Hb not being paid direct to landlords when UC comes in etc and landlords really wanting security i think the rental market will become very unstable for some groups such as us. It will be fine to those that meets the landlords wish list but hard for them that dont.
A lot used to go into rented with the hope that in time they may get picked up by the council for social housing, but new legislation means councils can and they will discharge their duty into the private sector and those landlords wont be great , also the localism act that if you do get a social tenancy its likely to be as a AST.

So i see the game of renting unsettling , but of course it is everyones choice, i would not get help with the rent of a private rental , ie housing benefit but the poster may, and that can also make a difference to decisions being made.

For me i wonder sometimes if people go to fast go BR and leaving the home, i took a very long time to make the decision to go BR . I would def never go down the voluntary route when from my own experience with neg equity ive seen families remain for months before the judge eventually evicts them.

kepar wrote: »

Sundays, I see your point, but I will do the same.

Mortgage rates are starting to rise, interest only mortgages are being pulled. How much of a rise can you withstand, you cannot swap lenders, you could end up trapped.

Once rates start to rise , the lenders will continue to do so, they need the money.

Good luck, but you may survive for now but can you survive another 5 years.

Your attitude to renting is poor, we have been renting here for well over 3 years now with no problems. Not all landlords are rogues, as long as you keep paying on time why would they move you on? With house prices staying low, most landlords will not sell unless they need the money.

I don't know how long you have been in your property but if it is in negative equity you are renting the place anyway. If you haven't been there more than at least 7 years your repayments would vutually all be interest only.

So what is the difference renting from a landlord or renting from your lender?

sundays

lisa.89 wrote: »

Sorry didnt reply sooner - I believe a guarantor can be just one person.

Hope you secured a property - let us know how you get on xx

A guarantor is normally credit checked and made responsible for a amount on the rent should you default.
So norm ally its on ly one and they need to be able to show they are financially sound with spare income to pay your rent if you dont
No guarantor ever gets taken to court, well ive never know one in 15 years plus, but the test is there if they choose to, so sometimes if the guarantor is aware of the fact the reality is they wont prob go after them, it might find getting one a bit easier.