Bankruptcy questions please!

Qwerty100

Hi,

This is my 1st post here!
We are currently in an iva but want to go bankrupt ( for various reasons! We have taken advice and feel that it is want we want to do)

We are just confused about a few things and hopefully somebody here may be able to help us.

1) we rent out a flat that we have a mortgage on. We were told by the cab that the tenents would just stay for the time being and when the mort company reposess the property they would then have to leave. We have a buy to let mortgage which offers them this protection is this correct??
The mortgage company insist it offers them no protection and they must be out if we want to hand back the keys.

2) is it better to hand back keys or wait for them to reposess?

3) we know that we cant go br untill the iva fails. We are about to miss payment number 2 but they have said it will then take 3-6 months before we get our failure letter. How much trouble will we be in untill we can go br? Ie, bailiffs etc?

4) iva company have said that they cannot offer advice towards us going br. Anyone we try to speak to ( debt charitys/ advice lines) cannot offer advice as we are in an iva and tell us to speak to the iva company!!should we try the cab? Are the cab up to date re br? Santander didnt seem to think so!

Finally, i like detailed instruction as i get confused easily ( really dosnt take much!!). Can someone please do me a list of what we need to do and in what order so that we can sort out the br as quickly as we can.
Thank you for any advice!

Anondebtadvisor

If you are renting out the flat and decide to go bankrupt, the trustee in bankrutcy will take your share of any rent you receive from tenants. So you will have to fund the mortgage yourself, for most people this is impossible and will eventually lead to the flat being repossesed by the lender.

Do you live a property you own or rent?

Qwerty100

We live in a rented property and want to get rid of the flat that we have the mortgage on.
We were planning on not paying the mortgage and telling the tenants of our plans and telling them not to pay us the rent.
( we assumed it would be theft for us to take their rent money when we have no intention of paying mortgage?)

It all confuses me!!!

Anondebtadvisor

If you want the property to be repossesed you will need to stop paying the mortgage and give your tenants notice.

Any shortfall will go into the bankruptcy

It may take at least 6 months of mortgage arrears before the lender takes action against you.

PippaGirl_2

re: CAB my personal experience is some advisors are very knowledgeable and some aren't. If you telephone them to make an appointment, make it clear you are wanting to talk about BR and hopefully they will allocate you someone in the know. My CAB advisor helped me with my BR forms and knew them inside out as she is a BR specialist.

doseduk

PippaGirl wrote: »

re: CAB my personal experience is some advisors are very knowledgeable and some aren't. If you telephone them to make an appointment, make it clear you are wanting to talk about BR and hopefully they will allocate you someone in the know. My CAB advisor helped me with my BR forms and knew them inside out as she is a BR specialist.

I agree - they do the best they can with limited resources, but do try to see if you can ensure it is a solicitor, or professional financial advisor, and/or somebody experienced with bankruptcy as PippaGirl said.

I did see a brilliant advisor the first time I went - however the second occasion, I arrived, they didn't know I was coming, thought I was volunteering as a debt advisor, after 30 mins I managed to explain (they were lovely and apologetic, don't get me wrong - I appreciate they are not only under high demand but providing expensive services as a charity for free to this volume of people, they do a wonderful job) and get in to see somebody.. but the person who went through my forms wasn't the advisor. Luckily, it was a volunteer who was, retired, but worked in something relevant before, and knew the forms very very well..

good luck, get plenty of advice, and I hope things become clearer and sort out as soon as they can x