Questions re Bankruptcy

Bella_Smythe

well having lurked and occasionally posted for a while now we are gearing up to declare bankruptcy shortly when we have saved up the fees. a few questions if anyone could help me please?

1) we have stopped paying the mortgage to save up the bankruptcy fees. also because we were struggling with it anyway and are in negative equity. Should we at some point send the keys back to the building society, or is it best to wait for them to repossess? Ive read on here before you have to be very careful not to sign stuff or you might still be responsible for the shortfall after bankruptcy.

2) I owned another property that was the family home in my previous marriage. This property was in my sole name although I abandoned it in 1996 and never lived in it or paid any bills or upkeep, but I only got round to transferring it to my former husband in 2011. no money changed hands as I felt by then it was 'morally' his. Will the OR look into this and what will they do?

3) Should I declare bankruptcy when we have the fees saved even if the house has not been repossessed? if we did this, how would we do the SOA as at this minute we are not actually paying any rent or mortgage so it would look like we have more disposable income than we will have when we start paying rent. if you catch my drift?

Plans to rent are in hand so I don't need advice on this. Also some previous posts Ive been trolled by people telling me what they think of me and my husband. We have both worked for 30+ years, I am a nurse and my life has not been easy with domestic violence, depression and PTSD. still we were coping until our lives were derailed by redundancy and illness. Despite serious chronic illness I still work part time (with adjustments) and have always paid my way. only now we can't
Thanks for any help. Bella

Bella_Smythe

Anyone? please?

TheGardener

Hi Bella
Bit of a bump up the board for you. I'm afraid I don't know much about how it works for houses but I have read a number of posts about repossession, try using the search function until one of the pro's comes along - or perhaps call StepChange tomorrow - they are very good.
Good Luck:)

tiggerbodhi

• we have stopped paying the mortgage to save up the bankruptcy fees. also because we were struggling with it anyway and are in negative equity. Should we at some point send the keys back to the building society, or is it best to wait for them to repossess? Ive read on here before you have to be very careful not to sign stuff or you might still be responsible for the shortfall after bankruptcy. - Depends on how long you need to save up the BR fees, it was three months before the BS even started to chase for payment, then I told them I was going to VR the property to them, I sent the keys with a covering letter and left, it was a few weeks before I got a reply saying they were taking possession etc and giving a date, but BS's are very changeable on this Northern Wreck are the worst by all accounts! but do not sign anything from the BS, keep it on your terms.
  
  2) I owned another property that was the family home in my previous marriage. This property was in my sole name although I abandoned it in 1996 and never lived in it or paid any bills or upkeep, but I only got round to transferring it to my former husband in 2011. no money changed hands as I felt by then it was 'morally' his. Will the OR look into this and what will they do? as long as there was not any equity in this property doubt the OR will be interested, I believe if this was over two years ago the OR forms only ask about stuff in the last two years so may be outside this.
  
  3) Should I declare bankruptcy when we have the fees saved even if the house has not been repossessed? if we did this, how would we do the SOA as at this minute we are not actually paying any rent or mortgage so it would look like we have more disposable income than we will have when we start paying rent. if you catch my drift? From personal experience yes, declare BR once you have the fees and moved to your new home, put the SOA together based on living in the new home and paying the rent etc, let the repossession takes its course ( it can take a long time if NRAM are involved and you really don’t need the stress!) once the repo has completed and they chase you for the shortfall you play your BR card.

Good luck,

Bella_Smythe

Thanks Gardener and Tiggerbodhi
The BS is the Leeds. we have currently missed two payments and have had letters from them but thats all so far.
Bella

Bella_Smythe

sorry. regarding 2) there is equity in the property. maybe worth £40 or a bit more as its a bad area and bad repair, but no mortgage on in and as far as I know no secured loans. Although I think there may be a Proceeds of Crime order on it re my ex husband? not sure, I only hear what he's doing by hearsay these days.

longtermplanner

Bella_Smythe wrote: »

1) we have stopped paying the mortgage to save up the bankruptcy fees. also because we were struggling with it anyway and are in negative equity. Should we at some point send the keys back to the building society, or is it best to wait for them to repossess? Ive read on here before you have to be very careful not to sign stuff or you might still be responsible for the shortfall after bankruptcy.

When you move out (or now if you have already done so), hand back the keys. The form you must not sign is a Deed of Acknowledgement. If your lender says you have to sign this, just refuse and send back the keys to them by recorded delivery.

2) I owned another property that was the family home in my previous marriage. This property was in my sole name although I abandoned it in 1996 and never lived in it or paid any bills or upkeep, but I only got round to transferring it to my former husband in 2011. no money changed hands as I felt by then it was 'morally' his. Will the OR look into this and what will they do?

YES the OR will look into this. What matters is not who morally owned the house but whether you had any equity in the property when you gave it away. Was this property mortgaged? If so and your ex was paying the mortgage and upkeep and insurance for 15 years, then hopefully you won't have too much equity in it - your ex may be asked to pay this 'equity' value to the Official Receiver and may have to mortgage the house to do so.

If it was mortgage free, then your ex has a huge problem as the OR may seek to overturn the transfer and sell the house.

If your divorce settlement meant your ex was to get the house but you didnt get round to doing it, then this may change things.

Time also improves things. You might have to delay going bankrupt...

I don't often recommend this, but I think you need professional advice about this - either talk to a solicitor or (possibly better) an Insolvency Practitioner.

3) Should I declare bankruptcy when we have the fees saved even if the house has not been repossessed? if we did this, how would we do the SOA as at this minute we are not actually paying any rent or mortgage so it would look like we have more disposable income than we will have when we start paying rent. if you catch my drift?

This isn't a problem. Rent will be an allowable expenditure for you when you start paying it and any IPA (income Payments Ageeement) will be reduced accordingly.

Bella_Smythe

oh dear regarding 2)
my ex is not a reasonable man, nor sadly is my 30 year old son who lives there on and off (between girlfriends) who unfortunately inheritated his dad's handiness with his fists:(. how long you suggest we delay bankruptcy for? will Stepchange be able to advise us, if not who would you recommend?

3) i wondered what the situation would be if we were actually still living in our current house (which has negative equity) therefore not actually paying rent or mortgage (although the mortgage payments 'should' be £565 a month? what would we put on our SoA? its all terribly complicated :(:(

Thanks everyone for advice, be especially grateful for advice from the members who work for the debt charitys and are clued up on BR law
Bella

Bella_Smythe

PS no mortgage on other property we paid cash for it in 1985. my ex has paid upkeep (such as it is) since I left, also utility bills, I have no idea whether he has insurance or not. on dear oh what a tangled web. trying not to get stressed because if I get sick again I will be no use to anyone

Bella_Smythe

haha. clearly I meant 'other' house worth about £40 K for £40!!

luvchocolate

Hi Bella hope you are ok...I know you said you did not need advice on renting but its all related really, its usually best to get a rental property before B.R is on your credit file and a lot of missed mortgage payments showing too.
My property was repossessed 10 month after missing payments..but remember you are liable for the council tax and insurance until then.
I had to declare property I sold 5 years ago so the other property could be an issue, sorry I do not know enough about that to advice.
keep your chin up ..you will get there believe me it will get easier once the process starts xx