Affecting others and other BR questions

ihavealotofquestions

So as my thread title and my username suggest I have a lot of questions.

I've been considering BR for a long time and have managed to get by (just) to afford not to, but can't keep it up.

So, if you please can answer all or any of the below it would help me make a decision:


1. I live with my current partner at her rented flat. She is about to buy the flat on her own and apply for a mortgage (NOT joint with me but I am currently on the tenancy). If I go BR will it affect her mortgage application or her in any way if I go BR whilst living at her address? We have no financial ties at all.

2. I have a joint mortgage with my ex-partner which I cannot get out of. She currently lives in the flat I jointly own with her and she does not want to sell it. I do notpay towards it. If I go BR what will happen to 'her'/our flat that I don't live in?

3. I do not currently own a car. I may need to purchase one next year for work as there are no nearby public transport links. I do not have any savings. Will the OR allow me to buy a car if I can justify it? Will he allow me to save for one?

4. I am currently employed but may lose my job/be required to resign if I go BR so may become unemployed. If am made to start an IPA, and then lose my job what happens? What happens if I find employment after being unemployed re the IPA?

Thanks

egrescrimp

1, if you have no financial ties it shouldn't Impact her application for a mortgage.

2, that depends, is there currently equity in the property or likely to be?

3, I'd recommend saving for your car prior to bankruptcy, that way you can claim car expenses in your SOA at the start which maybe enough to avoid an IPA being imposed remember the car needs to be under £1,000.

4, if you lost your job and had an IPA the IPA would be suspended, when you get a new job you'd submit a new SOA at which point they would decide if there was enough surplus to restart payments. This would only be applicable during the time of the IPA, 36 months.

National_Debtline

Just to elaborate:

2. The Official Receiver (OR) handling your bankruptcy will want to establish the value of your "beneficial interest" in the property.

Factors such as what (if any) contribution you made to the deposit and subsequent repayments will be taken into account. If there is equity and your interest is worth something meaningful, the OR will want to get their hands on it, meaning your ex could be asked to "buy out" your interest.

There is more info on this in our bankruptcy fact sheet:

https://www.nationaldebtline.org/EW/factsheets/Pages/01%20EW%20Bankruptcy/Page-03.aspx#quicklink2

Regards

Dennis
@natdebtline

ihavealotofquestions

Thanks.

It was a (very silly) zero deposit 100% shared ownership mortgage just before the recession. We jointly own 50%. I made full repayments for 3 years (we split up before that and she did not contribute). Then we swapped and I moves out and no longer pay towards it. She has been paying the full repayment for the last 4/5 years.

There may be 5k equity in it by now, the value has gone up slightly and we have had over 8 years full repayments but she can evidence she has paid it in full for the past 4/5 years with no contribution from me.

From what you're saying, it's possible the OR won't be interested in taking the house, and is more likely to ask her to "buy me out" - how would this work? She doesnt meet the affordability ro remortage just on her name, and even if she gives me half of the value of the property or the equity, which will go to the OR, legally it is still joint?

ihavealotofquestions

egrescrimp wrote: »

1, if you have no financial ties it shouldn't Impact her application for a mortgage.

2, that depends, is there currently equity in the property or likely to be?

3, I'd recommend saving for your car prior to bankruptcy, that way you can claim car expenses in your SOA at the start which maybe enough to avoid an IPA being imposed remember the car needs to be under £1,000.

4, if you lost your job and had an IPA the IPA would be suspended, when you get a new job you'd submit a new SOA at which point they would decide if there was enough surplus to restart payments. This would only be applicable during the time of the IPA, 36 months.

In reply..

1. We have no financial agreements, however I do pay half towards the rent as I am on the tenancy (I sent the money to my partner, she pays the landlord) but I we have no joint debts i.e. cards, loans, accounts.

She is worried that as I am on the voters registers and a joint tenant that when I go BR, her mortgage application will flag me up as a BR living there?

So this will be okay?



4. Okay so...if I am given an IPA, lose my job whilst still undischarged (IPA suspended) then find a job but it does NOT give me a surplus....will the suspended IPA stp when im discharged or, say, after I am discharged and then find a higher paidjob with a surplus, can they resume it after?