About to declare bankruptcy, need help.

timmbleaddams

Hi all,

Any help greatly appreciated. I have become quite ill recently, been diagnosed with M.E. / Chronic Fatigue Syndrome, partly down to the burden of debt, and think now that bankruptcy is the only way out.

Few questions if anyone knows the answer.

1) My wife works in the financial industry. Will this affect her?

2) I cannot pay the mortgage next month. I asked for a payment holiday but Nram told me to go jump. Is surrendering the house a good idea? Or are there any alternatives?

3) My mortgage is £95k and there is another £27k unsecured loan on top (Together Mortgage). If I manage to sell the house at say £105k, will they go after my wife for the remainder of the unsecured balance - or will my half be written off?

4) I owe £40k in Director's Loans (I have now resigned btw). Will me going BR affect the company?

5) I owed my friend about £7k and instead of paying him the cash I paid for some equipment he needed on my card. Will this cause him a problem?

6) Can they take my kid's stuff? Do they come to your house?

7) Can they take my bike? It's a £500 road bike that I use to go everywhere.

(By they, I suppose I mean the Official Receiver).

Many thanks to anyone who can answer any of the questions for me. Going slightly crazy with it all.

longtermplanner

timmbleaddams wrote: »

1) My wife works in the financial industry. Will this affect her?

it won't affect her job. If you have any joint debts, they will become solely hers. Her credit rating is likely to be affected because you have a joint mortgage.

2) I cannot pay the mortgage next month. I asked for a payment holiday but Nram told me to go jump. Is surrendering the house a good idea? Or are there any alternatives?

how much would it cost you to rent somewhere?

If you can't pay the mortgage, then long term you can't stay there. If there is equity then selling it would be a better idea than having it repossessed. but if your wife has a good job in finance, surely she can pay that small a mortgage? If your income has dropped, are you entitled to any benefits such as Child Benefit or Child Tax credit?

3) My mortgage is £95k and there is another £27k unsecured loan on top (Together Mortgage). If I manage to sell the house at say £105k, will they go after my wife for the remainder of the unsecured balance - or will my half be written off?

They will go after your wife for the rest.

4) I owe £40k in Director's Loans (I have now resigned btw). Will me going BR affect the company?

as it is presumably an unlisted company I don't see how we can be expected to speculate about how that will affect it. Who are the other shareholders? Is this a going concern? Does it provide you or your wife with a lot of income?

5) I owed my friend about £7k and instead of paying him the cash I paid for some equipment he needed on my card. Will this cause him a problem?

how recently?

6) Can they take my kid's stuff?

No. Well not unless you ghave been moving cash into the kids accounts. The lego and train set is safe.

Do they come to your house?

7) Can they take my bike? It's a £500 road bike that I use to go everywhere.

It is an asset, but what is its secondhand value?

(By they, I suppose I mean the Official Receiver).

That will do. Not worth getting into the details of when a trustee is appointed, just say OR.

Trinitrotoluene

longtermplanner wrote: »

it won't affect her job. If you have any joint debts, they will become solely hers. Her credit rating is likely to be affected because you have a joint mortgage..

To further clarify on this, if you go bankrupt and not your wife and the mortgage/debt is in your wives name too, none of this debt is going to be written off, the entire amount is simply going to pass to your wife.

If you can't afford the mortgage this month, assumingly your wife cannot afford it either. Are all debts joint?

timmbleaddams

Thanks for the responses.

Standby, I am just reviewing them now,.