going bankrupt whist owning own home

hazel3603

Hello everyone. I've been through bankruptcy using this forum whilst going through the process and thankfully have had no debts for 5 years .I have a friend who wants to go bankrupt but unlike me, her home is in her hubbys name as he is paying the mortgage( re-mortgaged to pay for double glazing also 10 years ago). I know under the BR rules they will have to do it together and then seperate whatever debts they have onto seperate forms. I have told her she won't lose the house, ( although I am aware that any official reciever is likely to come out and assess the value and the equity etc.) She and her hubby don't talk, AT all although I have told them that they will need to start communicating if all the BR goes through. He has got 500 towrd going BR although that will just cover him, so they need to find the additional 590 for her. They have been on a repayment programme for 18 months and still being harrassed and still in debt. He gets paid next week, so i suggested they stop paying the creditors, increase the standing order for the mortgage in order for them to be in credit and then go bankrupt. Whilst I understand the process to a point about BR and owning your own home I dont understand the 1000 pound that can be paid in cash to the official receiver in order to save her from losing the house..does anyone have any advice, please? Many, many thanks in advance.

debtinfo

ok the first thing to consider is how much is the property worth and how much do they owe in any mortgages or secured loans on it

hazel3603

ok.... I will have a go at talking to them but he butts in constantly and she says she dosnt know!! Very difficult to get them to open up... I mean, if they dont do SOMETHING they will lose the house. They think they can sell the home and move into a camper caravan with 2 teenage kids, both with special needs. Don't mean to sound patronising but I think she wont open up because one of her creditors is her last employer who she was found accused of stealing from them . She dosnt know I know this so I'm hoping to play dumb when I help them fill in the forms...thank you for your very quick response!!

tigerfeet2006

Have they spoken to National Debtline, CCCS or the CAB? This is a must as their petition could be delayed if they haven't sought professional advice.

hazel3603

Yes, over 18 months agoa payment plan was arranged so that creditors would be paid by direct debit on a monthly bsais, but as you can imagine, this is not so cut and final as many of the creditors are still applying interest, therefore demanding more or full payment....baillifs have been out so more bills have been posted by them as well. I have told her to ignore the bailiffs, and increase the mortgage payments to ensure they are in credit with the house payments. They are an absolute mess, the house is a tip, the kids are filthy, skiving off school, destroying doors and walls, she has given up...so it's difficult to "reach" her if you know what I mean. Im worried if I send them down the road of going bankrupt, they really will lose the house and end up on the streets. Many thanks for your response

hazel3603

I simply can't understand now why they are behind in the mortgae as it's 40 pounds a month for the next three years and it's all finished....but they hav'nt been paying it. Must be going on other creditors and she does spend alot of money on scratch cards 60 pounds per week min-plus she keeps giving her daughter money as she's apying off her own rent arrears and her boyfriends drug dealer debts...gawd,,,,help!!!

hazel3603

so sorry about spellings. Tired!!

gravitytolls

If they lose the house, the council should rehouse them, they would be priority homeless with special needs children.

She sounds utterly depressed to me, she urgently needs professional advice re. BR, but also from her GP, and any agencies in her area who can offer support with the needs of the children.

gravitytolls

hazel3603 wrote: »

I simply can't understand now why they are behind in the mortgae as it's 40 pounds a month for the next three years and it's all finished....but they hav'nt been paying it. Must be going on other creditors and she does spend alot of money on scratch cards 60 pounds per week min-plus she keeps giving her daughter money as she's apying off her own rent arrears and her boyfriends drug dealer debts...gawd,,,,help!!!

Is she bipolar? Or just having a breakdown? This post pretty much sums up my concern about her mental health. Sounds like she's desperately trying to do the right thing, but the fantasy world of rescue is so much stronger than reality.

hazel3603

wow...thank you for that. I got her down to the doctors in May of this year and she is on anti depressants ...her daughter is due to go into an eating disorders clinic and her son needs to be seen by CAHMS...but she's lost the will to push in order to get help. The school is now involved with her son and her daughter, if her problems are not sorted is likely to have a very short life. Her hubby has had a heart attack and my friend has recurring chest infections. She's at the point now where she has 150 un-opened white envelopes which we all know are from creditors. Thank you so very much for your advice...it's really nice to know there are people out there who don't judge -but can see that, despite trying to be responsible in paying back what they can, it simply isn't working.

I'm not envious at all, just printing off the forms for her is making me feel ill.. thank goodness we did it and have been able to move on. But I am very worried about her. I'm going to her house over the weekend and will show her this site, get her registered and she will find the advice, support and help invaluable!! Thanks again.....Hazel

gravitytolls

She may not be able to cope with taking advice, though she may well read it and take it on board, but depression sort of leaves you knowing what to do, but unable to do it.

Is she registered on the housing list. If not, this must be a priority. Good luck, and well done for being such a good friend, thank heavens she has you by her side, the poor soul.

If you still feel her mental health has not improved, get her back to the GP, she may need a different medication, a different dose, and probably some counselling too.

Once again, a massive pat on the back for you, coping with someone elses problems, especially over a long period of time, is exhausting, and you've been marvellous, I shudder to think where she'd be now were it not for your strong shoulders.