want to go for bankruptcy but need advice

SPELLKASTER

i have around £14K of outstanding debt.

i live with a partner (he does not know my financial situation).

the property is in his sole name only.

i have not contributed financialy to the upkeep of the property and i have not helped pay the mortgage.

i am not on the titled deed of the property.

i am on benefit cont based esa and dla.

i am currently on an iva but i am struggling with the payments.

my question is this; if i go for bankruptcy how would this affect the property and would they claim i have a financial interest?

confused by the whole thing; i would not qualify for a dro by the way.

thanks

Anondebtadvisor

Hi Spellkaster, how long have you and your partner been together?

Can i ask why you do not qualify for a DRO?

SPELLKASTER

ive lived with him 2 years at this current address

with all the interest my debts exceed £14, if the IVA was to cease it would go over the allowed £15k for a dro.

so fed up really.

alastairq

hi..do you have an income?

{ie, do you contribute to household expenditure, food, etc?]

I ask this because when looking for a beneficial interest in the property, the OR will seek to discover if you have contributed in any way, to the household running costs.

Whilst such contribution might not directly pay into the mortgage, it allows the mortgage payer to meet the payments more easily.


However, I suspect after just two years little or no beneficial interest could be accrued..[certainly, any such accrual could be argued against?}

SPELLKASTER

alastairq wrote: »

hi..do you have an income?

{ie, do you contribute to household expenditure, food, etc?]

I ask this because when looking for a beneficial interest in the property, the OR will seek to discover if you have contributed in any way, to the household running costs.

Whilst such contribution might not directly pay into the mortgage, it allows the mortgage payer to meet the payments more easily.


However, I suspect after just two years little or no beneficial interest could be accrued..[certainly, any such accrual could be argued against?}

yes i do pay for foods costs, gas, water, tv licence and water bill.

however i would be paying these anyway if i was to be living on my own so in my eyes, no i have no financial interest!!

alastairq

however i would be paying these anyway if i was to be living on my own so in my eyes, no i have no financial interest!!

it isn't about what we as individuals think about the matter...it's all about how a Court [if needs be] interprets the matter [therefore, the OR].....



As I noted above......just because someone does not actually pay the mortgage payments, doesn't mean to say they don't acquire a beneficial interest [whether they want it or not] in the property..

It is acquired regardless of whether one would 'normally' pay such bills or not.

{consider this..... because you pay those bills, means your partner does not have to..thereby freeing up their own income for the mortgage payments.]


The only way to deny a future partner acquisition of beneficial interest in property is to have a solicitor draw up some sort of trust document to that effect, on commencement of the relationship. Even this sort of action may be open to challenge, however.

But, as I said, I don't think you will have been co-habiting long enough to accrue much BI...if at all.


[Don't confuse beneficial interest in a property, with ownership, or title. Two separate things entirely]

SPELLKASTER

i spoke to a company yesterday who deals with bankruptcy and they said the property wont be taken into account.

just a question though; if i was to go bankrupt would it be advertised in the local paper!?

alastairq

SPELLKASTER wrote: »

i spoke to a company yesterday who deals with bankruptcy and they said the property wont be taken into account.

just a question though; if i was to go bankrupt would it be advertised in the local paper!?

Right...let's just stop there a moment?

You need to get yourself off to speak to one of the debt charities, like CAB, for example?

And not relying on information imparted from a company whose primary intention is to make money out of your situation.

See the stickies at the top of the page, or shout for If or someone who has an information page already to hand?

You appear to be at the very start of the insolvency learning curve....which is fine....

It is a very long time since bankruptcies were published in the local newspapers.

Now and again a notice may appear with regards to a business or trader winding-up....where all creditors are not known at the time.

But not for personal insolvency.

Once BR is petitioned, the BR's details, address, etc, are published on the Insolvency Service website [until approx 3 months after Discharge...useful]....and of course, eventually it is there to be found on credit references [CRAs]....[for 6 years from date of petition]

\plus, details are published in the London Gazette,[ in perpetuity.]

There is no reason why any other person should discover a BR, unless one tells them?

[Subject, of course, to the rules surrounding an undischarged BR...or, once discharged, if asked specifically when making an application or proposal.]

The main thing is to seek unbiased advice , as above....and ask away on here.

alastairq

BTW....unless you feel you relationship is a bit fragile, it is worth discussing the situation [once you have armed yourself with ALL the relevant facts?].....with your partner.

There is nothing to be 'ashamed' of with bankruptcy.

It is simply a powerful, legal solution to a debt problem.


However, by keeping a BR hidden, can produce problems much later on on life.

For an example, take household insurance?


Some insurers ask, on the proposal, whether anybody living in the household has ever been BR?

To be untruthful with the response invites being uninsured in event of a claim.

And, as ever with insurers looking for a way out of a claim, they will search the Gazette!

There are other occasions where having been BR may need to be disclosed.

Better for your partner to find out from you, eh?

SPELLKASTER

Thanks for the advice alastairq.

I am still going into CAB next week to ask for the full indepth advice before I take a final decision.

If I was to tell my partner about my real financial problems, I reckon yes he would kick me out no two ways about it!!!