We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
when should I start bankruptcy? after a foreclosure of the property??
Options

xxemmaxx_2
Posts: 33 Forumite
Hi everyone,
I have given my background on here before and thank those who took the time out to offer a bit of advice.
Unfortunately im no further with my situation i think its purely down to the mix of advice i have been getting everywhere from solicitors to citizens advice to ifa etc.
Quick background -
Property owned with ex partner, also have my sister as gaurantor.
ex completely left the scene and i had been paying what i could afford myself up until march/april this year to try and keep bank of my sisters back etc...
bought property in 2006 for 145k - mortgage 136k
I discussed options with bank and decided to hand the keys back in april of this year and they said they would be back in touch once its sold to take it from there, so i have now not heard a word or had any correspondence from my bank in 7 months there has also not been any payments made in this time. I have kept an eye on a local estate agents who seems to be trying to sell the property on behalf of me and the bank... it has been reduced 3 times in the space of 7 months and is now on the market for 35k * devastated wouldnt be in it** but im still as confused as ever i dont know how to start this process and what is the best route to go...
I keep hearing all these horror stories of people filing for bankruptcy and getting discharged but still finding theyre liable for the property as the deeds are still in their name... i also keep hearing about foreclosure and A deed in lieu of foreclosure and im wondering should i get in contact with the bank now 7 months on and ask them about these options or what should i do... is this automatically happening just without them communicating with me.
I feel very im limbo and would love to start this fresh start as soon as i can...
confused please help! really im at the stage now i want nothing to do with the house so trying to get my name of the deeds and want the debt written off so i can start to get back on track, i have no other loans credit cards finance nothing and never had.
Thanks for help in advance and sorry if that was a bit lengthy!
I have given my background on here before and thank those who took the time out to offer a bit of advice.
Unfortunately im no further with my situation i think its purely down to the mix of advice i have been getting everywhere from solicitors to citizens advice to ifa etc.
Quick background -
Property owned with ex partner, also have my sister as gaurantor.
ex completely left the scene and i had been paying what i could afford myself up until march/april this year to try and keep bank of my sisters back etc...
bought property in 2006 for 145k - mortgage 136k
I discussed options with bank and decided to hand the keys back in april of this year and they said they would be back in touch once its sold to take it from there, so i have now not heard a word or had any correspondence from my bank in 7 months there has also not been any payments made in this time. I have kept an eye on a local estate agents who seems to be trying to sell the property on behalf of me and the bank... it has been reduced 3 times in the space of 7 months and is now on the market for 35k * devastated wouldnt be in it** but im still as confused as ever i dont know how to start this process and what is the best route to go...
I keep hearing all these horror stories of people filing for bankruptcy and getting discharged but still finding theyre liable for the property as the deeds are still in their name... i also keep hearing about foreclosure and A deed in lieu of foreclosure and im wondering should i get in contact with the bank now 7 months on and ask them about these options or what should i do... is this automatically happening just without them communicating with me.
I feel very im limbo and would love to start this fresh start as soon as i can...
confused please help! really im at the stage now i want nothing to do with the house so trying to get my name of the deeds and want the debt written off so i can start to get back on track, i have no other loans credit cards finance nothing and never had.
Thanks for help in advance and sorry if that was a bit lengthy!
0
Comments
-
i believe any shortfall due after a property is repossessed and then sold automatically falls in your bankruptcy as the debt existed before your bankruptcy, therefore the shortfall becomes unsecured debt after the sale of the property, and this unsecured debt comes under your bankruptcy so your not liable for it ( dont sign any of the banks paperwork as they try and trick you into becoming liable for it).
i see no harm in contacting the bank and asking them for an udate, just get them to answer your questions and ignore answering theirs just to be on the safe side...thats what id do...0 -
The reprocussions of the proerty boom is slowly but surely coming to light! In Northern Ireland the amount of repossessions are up by 46% from last year & 1 in 4 retail shops are without tenants.
When is this all going to end.
JCG
xx:smileyheaMarried on 20/07/2012! :smileyhea
:DBought my new car 11/08/12:D:cool: Save £12k In 2013 Num 009! £5502/£5000 :cool:
Save £12k in 2014 Num 22! £2131/£3000
Emergency Fund £00 -
All the shortfall when it does eventually sell will be included in the BR if you are going BR so it doesn't matter to you whether it sells for £80,000 or £8,000 to be honest but my worry hear is your sister and her liability for any shortfall as she was guarantor. Have you sought legal advice from CAB or Stepchange or National Debtline and if so what have they said wrt your sister?"Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama0
-
thanks for ur replies
I have spoke to everyone i can think of from, debtlines to ifas to solicitors and cab.. the advice is they cant see any other route for me to take other than BR, as my ex is also jointly on the property and my sister gaurantored it, they said its hard to know what they will do, as my sister outgoings are more than her income, she has a bit of unsecured debt and her property is also in negative equity!! i really dont know what to do because if i burry my head in the sand and not file for br and pay a min amount each month just to keep them off my sisters back the interest is just mounting up and up and up... but by doing this ive already completely ruined my relationship with my sister to the point im non exsistant to her and this has put our family through hell...
without a sop story at the minute im heavily pregnant and I really just want to hurry and get this on the road but i honestly dont know what to do.
My other questions are.. with our baby due in feb we have decided to move in which means ill be moving out of the rented accomodation into a mobile home onto land as we really cannot afford the monthly outgoing at the moment at all. were both self employed and any benefits i received as living singly with my son from a previous relationship will be reduced or ceased right down... how will this all come into effect with BR if im now living with a new partner will he be affected in anyway, as in his income will also be taken into consideration for disposable income ( which there is none) were also due to get married in october, obv a very small wedding paid by his parents because of our circumstances, what happens then as we will be married? and lastly i know when you file for br your bank account gets froze, not that i have hardly anything in it but it is where my child benefit goes and ive tried to save 1k in it to cover any legal fees for this,am i best to clear out the account, if the 1k sitting in it or will they see this as an amount i have to use?? im self employed so no income comes through as its cash in hand of very little a week but whatever comes in goes straight out on the weekly shop...
Im sooo confused to what to do:( i havent even heard a word from my bank at all regarding any of this,... if i do file for the br do i just get whatever forms is needed myself and take them to the court myself? Ive tried reading all the info i can but its so overwhelming i need like an easy 1 2 3 steps for northern ireland as all the info i get is for england etc..
im so waffling now, but im so stressed out:( x
0 -
Your partner would only be affected in as much as he will be expected to pay 50% of the household expenses/bills if his income allows it. Any disposable income he has on top of that is his and nothing to do with the OR.
Standard bank accounts will probably be frozen. Open a Co-operative bank cashminder account before you go BR as that won't be.
Most courts want you to make an appointment to go BR, so phone your court to check, some let you turn up at set times others at any time they are open.
Have you put your SOA up here yet?"Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama0 -
Thanks pippa girl.
we dont even have a co operative bank over here that i know off so looks like ill have to try and open one online.
I havent put a soa up here yet no, to be honest im going to have to look into what that even is... xx0 -
Barclays also do a basic cash account that is BR friendly"Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama0
-
Info on NI bankruptcys here: http://www.detini.gov.uk/deti-insolvency-index/insolvency-bankruptcy.htm
soa (statement of affairs) is at makesenseofcards.com website. It's basically a standard format of the state of your accounts -ie how much money you have coming in and going out, how many and how much your debt is etc. One reason it's useful is that people can give their expereiences on a)whether they feel bankruptcy is a sensible option for you or whether something else might be better dmp, IVA, DRO, token payments etc etc b) people who have gone bankrupt can give you insight/feedback as to what sort of budget you are likely to be allowed and how an examiner may view things (although people will be commenting from anEnglish point of view - I can't see NI being completely different) and c) you will need a SOA/budget when talking to a debt charity (which you have to do, certainly in England before you can go bankrupt) and also the budget for when you do go bankrupt.
Hope that helps.
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0 -
Emma, here is an SOA calculator you just fill it in then click on the MSE button which creates a format that you can then copy and paste into this forum and then people can advise you. Your SOA will be part of your BR forms so it is useful to get advice on it first."Our prime purpose in this life is to help others. And if you can't help them, at least don't hurt them." Dalai Lama0
-
thanks so much you two!! i will do this now...
its going to be rough because i dont know how my tax credits and child benefit will change because i cant amend the claim until i move in with him which is next week... but ill try and base it on what the calculators online are showing my entitlement as. xx0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards