Petition filed, what to do now?

Unknown_future

My husband has been served with a BR petition for 21k and court date is the end of the month. Now I am unsure what we should be planning to do
And what happens now? Any advice please!
The mortgage is only in his name and the mortgage company have advised that they have given the balance to someone (OR?)
There is around 15k equity (house prices and auction value dependant) so I have assumed we will lose the house.
So do we wait until hearing before trying to find somewhere to live? Can we rent, how do we when they have frozen his bank account?
We have two children aged 3mths and 3yrs so I am on maternity leave and was unsure if I could afford to go back to work with child are costs and available for school runs
Do we get housed?
Does his account get unfrozen and when?
I have about £200 until I get my next maternity pay and that's too small to keep 4 plus bills
Help!

IF

Hi Unknown future and welcome to the Bankruptcy (BR) Board. Until you receive more replies I would contact one of the following debt charities, they will help you understand more of what BR means and how it will affect you all.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

Beware of advice via PM.

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Reasons for your BR - 6.28

Charities who help with BR Fees

CABmoney Bankruptcy Payment Order Calculator

Diary of a broken gambler

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB


Best wishes
IF

National_Debtline

Hello there,

Here are some answers for you.

And what happens now? Any advice please!

Your husband should attend the hearing, have you any objections to the bankruptcy? For what it's worth, even if you do not have any reasons to object to the bankruptcy, the judge may consider an alternative route - such as allow the debt to be secured to the property by way of a 'charge', or via a 'Fast Track Voluntary Arrangement': https://www.gov.uk/options-for-paying-off-your-debts/fast-track-voluntary-arrangements

The mortgage is only in his name and the mortgage company have advised that they have given the balance to someone (OR?)

There is probably a restriction on the property to prevent it being disposed of due to the pending bankruptcy.

There is around 15k equity (house prices and auction value dependant) so I have assumed we will lose the house.

Unless someone can buy your husband out of the equity it is likely that the house will be sold. You can delay this for a while - especially as you have children.

So do we wait until hearing before trying to find somewhere to live? Can we rent, how do we when they have frozen his bank account?

You could look for alternative accommodation. The account isn't frozen per se, but the bank may close the account once they are aware of the bankruptcy.

We have two children aged 3mths and 3yrs so I am on maternity leave and was unsure if I could afford to go back to work with child are costs and available for school runs
Do we get housed?

You may be given some time to find alternative accommodation, in certain circumstances this could be up to a year.

Does his account get unfrozen and when?

If he banks with one of the banks that allows bankrupts (such as Barclays, for example) it should be OK to use throughout the process. He'll need to keep the official receiver up-to-speed.

I have about £200 until I get my next maternity pay and that's too small to keep 4 plus bills
Help!

Are you claiming Child Tax Credits? if not, do you qualify?

Best wishes,

David @ NDL.

longtermplanner

My husband has been served with a BR petition for 21k and court date is the end of the month. Now I am unsure what we should be planning to do

You need advice urgently. Call National Debtline http://www.nationaldebtline.co.uk/england_wales/ Do this today, don't spend any more time thinking about it or doing more research. I don't know what options might be available for you but they have to be explored FAST

Possibly I should stop there to emphasise that this is what you must do right now! But I will carry on as some of my questions and comments may mean that you are better placed for your discussion with National Debtline.

is 21k the total of his debts? If not how large is it and are any of them joint debts with you? which creditor is petitioning for him bankruptcy?

The mortgage is only in his name and the mortgage company have advised that they have given the balance to someone (OR?)

before you stopped working were you contributing to the mortgage? did any of the deposit for the house come from you?

There is around 15k equity (house prices and auction value dependant) so I have assumed we will lose the house.

IF he is bankrupt, yes probably, unless there is someone that could buy out the equity from the OR - one of your parents possibly?

So do we wait until hearing before trying to find somewhere to live?

at this point, yes.

Can we rent, how do we when they have frozen his bank account?

yes but it can be hard to find a landlord to take you. luckily your credit record will not be affected. Is there a relative that can act as a guarantor?[/quote]

he will need to open a new bank account if he is made bankrupt. A basic bank account with Barclays is usually the best option, unless you have a co-op branch close to you?

I hope you have a bank account in your name that will not be affected? If not, go and open one asap. get any benefits (child benefit? child tax credit? paid inot your account. get husband to ask for his wages to be paid into your account tempoarily.

We have two children aged 3mths and 3yrs so I am on maternity leave and was unsure if I could afford to go back to work with child are costs and available for school runs

this would be a good point to find out the answers.

Do we get housed?

do you mean by the council? yes probably, but it may be in temporary accommodation for a long while and may be far from nice.

But you will not be evicted quickly. You are likely to be given up to a year to find somewhere.

Does his account get unfrozen and when?

who is it with? most banks do not let you have an account if you are bankrupt.

alastairq

The mortgage is only in his name and the mortgage company have advised that they have given the balance to someone (OR?)
There is around 15k equity (house prices and auction value dependant) so I have assumed we will lose the house.

Firstly, from what you say, husband isn't yet Bankrupt?

If so, in preparation, he needs to open [preferably two] basic bank account, ASAP, with either Co-op [CAshminder, make NO mention of BR..it hasn't happened yet, & might not happen at all].....or Barclays basic accounts.

With reference to the house?

How long have you yourself lived there [did your husband buy the property before your marriage,etc?]

The reason for asking is.....if you have co-habited within the house for a number of years, then you yourself will have acquired an 'interest' in the equity of the property.
[Beneficial Interest].

For example, if you both have lived there from the day the property was purchased, then you yourself would have a 50% interest in the equity of the property. [regardless of any financial contribution you might, or might not have made].

Therefore, an Official Receiver would only seek to realise your husband's share of the Equity [50 % perhaps?}

From what you say, this would amount to a figure less than £10,000?

In which case, the OR might simply seek to place a Charge on the property [and you could continue to live there].

In addition to other preparations noted in other posts....I suggest you seek at least 3 valuations on the property [priced to sell]...., allowing you to use the lowest valuation [evidence?} when negotiating with the Official Receiver with regards to the Equity.

ALl, of course, presuming the Bankruptcy petition is allowed by the Court in the first place?