Bankruptcy and a joint mortgage.

bounce08

I've been advised to seriously consider bankruptcy for a couple of reasons. I am actually seeing it as a metaphorical way out for me as I have struggled with my debts and depression (see my other thread).

I have over £30k unsecured debt through 19 different creditors and I have a joint mortgage with my ex-partner.

What would the situation be regarding a joint mortgage if one party petitions for bankruptcy? What is the implication for the other party? I am not on good terms with my ex-partner however I would not want to see her suffer financially for it. We have been trying to sell our house for years but can't for various reasons. She is currently living in the property and paying the mortgage and I am renting elsewhere. We have no equity in the property (quite possibly negative equity due to no deposit and house price reduction, however mortgage has been paid for 4 years of a 35 year mortgage).

I also don't really understand the concept of bankruptcy and being discharged. I understand a lot of people can be discharged after 12 months, however a payment agreement/order last for 36 months. What real difference will this make after 12 months if I have to make payments for 36 months? So what I'd like to know is......

1. What are the implications for my ex-partner on our joint mortgage if I go bankrupt?

2. What are the advantages of being discharged after 12 months if I have to make payments for 36 months anyway? Effectively the restrictions are still lasting for 36 months?




Thanks.

bounce08

Also, would my bank account be closed with BR? I have a Co-Op Cash Minder account which I've had since 2011 and my wages are paid monthly by BACS like most people.

sort_me_own_yard_out

Sorry I can't offer any advice as far as your mortgage is concerned.

But can try and explain about IPA/IPO. When you petition for your bankruptcy part of the paperwork involves a statement of affairs (SOA) here you list all your expenses relating to a reasonable cost if living so it everything from food to car parking charges. After going to court you will have an interview with the official receiver (OR interview) this is the chappy that looks at everything, why you hit into debt who you owe, all your assets etc also their job is to determine if you have any surplus money at the end of the month to pay towards an IPA. Now this is an agreement so if he comes back with a figure you don't think is reasonable you can object they can look at it again and if they take it to court it becomes an order (IPO) you pay this for 36 months. It is adjustable with changing circumstances etc. If your income is made up purely out of benefits then you will not recieve an IPA.

You are bankrupt for 12 months from the date you went to court. In that 12 months there are certain restrictions you need to obey. Taking out credit for more than £500, coming into any money, new job, pay rise. Bonus at work etc etc you need to tell the OR within 21 days. There are ones about being a director of a company too. Once you are dishcharged you no longer have live by the rules can re-build your life. Whether you have an IPA/IPO or not live begins after a year!

I hope this is ok and makes it clearer. I am no expert just someone who has recently gone bankrupt.

Good luck