Impending Bankruptcy

MissDevon

Hi all.

I am new on here and looking for some advice.

My partner and I plan to go bankrupt soon. Our home is going to be repossessed shortly as we have been unable to keep up payments due to me losing my job. The house is in great negative equity and there will be a shortfall which we will never be able to repay. This coupled with arrears to the property factor have made us decide on bankruptcy so we can eventually start fresh. We have already arranged future accommodation and to be honest look forward to being free of a crippling mortgage in a bad area.

I am starting university in Sept and my income will be a nursing bursary only. My partner has a job and brings in 20k per year. I am wondering how much we will have to pay back and whether it will be over a year or 3 years. Also if I take out a student loan will they take this from me? As if I will lose the benefit of it there is no point in taking it out.

We have a car work approx 5k. Will this be taken from us? This is the only asset we have, and I will need it for taking my daughter to nursery and getting to uni placements.

We have no other debts but I have never heard of NRAM ever agreeing to write off debt so think bankruptcy is the only way to start over. I dont want to be paying this back for the rest of my life.

Thanks in advance for any help.

fiveyearplan

Hi Miss Devon and welcome. I haven't posted on here for some time and some things do change so I don't really have many answers for you but I wanted to welcome you and show you how supportive people are on here.

Have you taken any advice from CAB or other debt charity?

MissDevon

Thank you for the reply! Well my partner has spoken to stepchange. I spoke to cccs some time ago and they advised handing the keys back and bankruptcy but I guess I just hoped things would improve and never took any action. I plan on speaking to stepchange tommorow but they told my partner they could only advise us individually so I was hoping someone on here had experience of a couple going bankrupt together just so I could get an idea of what the next few years hold for us.

fiveyearplan

If you fill in your statement of affairs (income and expenditure) people would be able to advise whether you both would have to pay anything back.

There is a link somewhere for this but I don't remember where - hopefully someone will come along with it soon.

MissDevon

Okay I will look out for it. Thanks

Rylynn

Hi Miss Devon and welcome, like fiveyearplan I have come back here after some time away and things may have changed.

What I would like to say is that you have done the right thing, sticking your heads in the sand (I did!) and hoping it will all go away is not the way forward.

On the car, yes they can take it unless that has changed, I have no idea what type of value they say you can have for a car these days, I had one valued at the time if memory serves me well enough at about £1400, think back then the limit was around £900 my Official Receiver let me keep it as it was my only means to get to work, there is no local transport or there was not back then.

However, whatever you do, do not go and sell it!! And if you have any other assets do not sell them either right now.

I will see if I can find you the link for the Statement of Affairs, this enables you to put what comes in and what goes out and then people here can tell you what they think you may have to pay.

On getting a student loan I am really not sure, please be sure to check tomorrow.

Once you start the ball rolling things seem a whole lot better, although you have doubts, queries, worries and questions people here are wonderful, I know they got me through this back in 2008 and I can never thank any of them enough for giving me advice, helping me fill in forms, telling me what it would be like, what to expect, and making me laugh when I felt so down. Good luck to you both.

RL

debt_doctor

Hi,

This is my starting point, but i'm off for tonight, back tomorrow.

31.7.78
Student loan income

It should be noted that where a bankrupt is in receipt of a student loan this is not income which can be claimed under an IPA/IPO.

DD

Rylynn

Thanks for that DD I will make sure I remember that in case asked in the future. I had hoped it would not be, as it stops people being able to train and then work and get on with their lives.