Rent Before bankruptcy

markt89

Hi all me and the wifde are now going down the route of br after sc suggested IVA we feel as we are stuck on a massive mortagage with interest only we need to wipe the slate clean .

we are thinking of stop paying the mortgage for upto 6 months to get the rental deposit and fees for br ect as this totals about 3k for both of us , what i am asking is how hard is it to get into rented with bad credit history and then after a few weeks going br can they just chuck us out .

Also worried we get baliffs ect before we have saved the money needed so might have to move out before BR but then wont have anyway to save for the fees we have combined income of 25k (i used to earn 30k on my own hence my situation )and £180 left over income at a push from the iva soa that sc did

please advise:eek: .

FabDee

Hi
I feel I am in a good dare I say great place now to offer my story after Br and 3 years later. See my post below as well.

But quickly, what we did was get the rented house sorted first. put down deposit got out with not paying the first months mortage only and then the letting agents didnt know. not lieing as we didnt have bad credit then. hence move first and sort out BR after. We where advised thats the best way forward and worked for us.

You will then have the spare cash hopefully to sort out the other debts, a home is most important, and if going BR the debts will go so you wont be paying them anyway, so let them whistle.

We are in Scotland so different rules I think on payments and suck, so find that out regarding filing for it. We only paid £100 each for ours.

Anyway my advise for what its worth is to move first and then get the BR done. Life will be better but I found the best thing is do make sure you do it all fast. New bank account as well as looking for rented Co-op for us internet banking, great.

Hope all goes well. Dont get into bad credit by staying put, get moved and then sort it.

Hope all goes well for you.

FD

alastairq

hi....you will get plenty of warnings before Court bailiffs make their presence felt...[at least 3 Court appearances for each creditor].....if BR is your ultimate aim, then cessation of payments to mortgage...and non-priority [unsecured] debts is important.

However, for unsecured debts, paying a nominal sum to each is useful [one pound per accounts, paid each month, whether they like it or not. This is so that, if a Court is involved, you have established a willingness-to-pay]

Not personally having to undergo a repo,I can only go by what I have gleaned from this forum in this respect, but timewise, I suspect 6 months, maybe more, before the repo goes to Court?

Time enough for the BR fees and rental deposit??

I strongly recommend aiming for the rental deposit first.

Get moved into somewhere nice, get settled and organized.

At this stage credit checks performed by letting agents should prove easy. [usually, identity checks IMHO]

However, if a letting agent indemnifies their LLs for 6 months rent, then an insurer is involved, so BR on a credit file may not be helpful.

Once in your rented home, then a subsequent BR is usually not a problem, unless you are in rent arrears.


However, check with your rental agreement..or better still, once in situ and paying your rent correctly, contact your LL direct about your BR intentions. They want regular payments, not periods of no income, so BR isn't usually a threat to them.

The important thing is...once you have made your minds up about how you wish to proceed, take your time.

As FabDee says, get yourselves a couple of Co-op Cashminder accounts soonest [or Barclays basic accounts..but they don't normally allow internet access whilst undischarged]......in your cases, the BR is actually the very last action you want to take....like, locking the front door when you leave home?

markt89

FabDee wrote: »

Hi
I feel I am in a good dare I say great place now to offer my story after Br and 3 years later. See my post below as well.

But quickly, what we did was get the rented house sorted first. put down deposit got out with not paying the first months mortage only and then the letting agents didnt know. not lieing as we didnt have bad credit then. hence move first and sort out BR after. We where advised thats the best way forward and worked for us.

You will then have the spare cash hopefully to sort out the other debts, a home is most important, and if going BR the debts will go so you wont be paying them anyway, so let them whistle.

We are in Scotland so different rules I think on payments and suck, so find that out regarding filing for it. We only paid £100 each for ours.

Anyway my advise for what its worth is to move first and then get the BR done. Life will be better but I found the best thing is do make sure you do it all fast. New bank account as well as looking for rented Co-op for us internet banking, great.

Hope all goes well. Dont get into bad credit by staying put, get moved and then sort it.

Hope all goes well for you.

FD

Hi this is what i was thinking , i would imagine its better to save for longer to get the br fees whilst in rented than trying to get it all in place before moving out . Can a debt colloector ect chase you while you are in rented are you obliged to tell them where you live . I dont want to hide from them but protect my family from this whilst we get the fees together so if they call at the current property the house is empty so nothing to take , we dont have any valubles ect but want to keep the essentials

alastairq

hi..you seem to be confused between 'debt collectors'....and Court Bailiffs?

Debt collectors have no powers whatsoever.. either to enter your home [throw them out or call Police?].....or seize property of any sort.

They are simply a face-to-face alternative to letters and phone calls. [the idea is to bring pressure on the debtor to pay something.]

It is important that you d not pay [or your OH] to any debt collectors whatsoever....or any debt collection agencies...[except the minimum payments I suggested above?]....as this can be viewed, once BR, as 'favouring a creditor'.

If a creditor actually goes to Court to seek a CCJ against you, it is likely you will already know about it....and will be able to submit an SOA to the Court, so that the Court can then set a reasonable repayment sum.....which is binding on the creditor to accept.

Whatever the Court decides, if you don't pay [which you won't]....then the creditor has to return to Court again to get an enforcement order...!

Again, if you don't respond, then the creditor has to return to Court yet again to obtain distraint against you.

This is when Court Bailiffs attempt to enter your home [which they are not allowed to force an entry]....to seize goods or monies to the value, etc.

So you see..there is plenty of warning, and it takes quite a long time, before anything confrontational actually will occur.

By then, you will probably have petitioned for BR....and BR trumps everything else!.