considering & have 2 questions please

Annie35

Hello, I'm considering a dro/bankruptcy on business debts (approx £10,000 on owed rent for next upcoming year) & £5000 personal credit card.

I currently have zero income as I had an illness I lost the business & my husband earns to much for benefits, this is 1 of the questions I have, will his income be taken into account for any payment plan? (His incomes artificially high this year as he's wanting a mortgage in April but it's not sustainable, it'll halve for next year) I'm worried the future credit issues will impact him too?

The other question is I'm looking at dro but it says about not owning a home, I have a 50% shared ownership mortgage in negative equity, (so i dont really 'own' anything :eek:) there's no problem with repayment there & looking at bankruptcy I'm confident it wouldn't be of interest but is that an automatic NO for a dro?

Thanks for your time

National_Debtline

Hi Annie35 and welcome to the forum.


First of all, yes, holding a mortgage means an automatic NO for a Debt Relief Order, regardless of shared ownership and level of equity/negative equity.


As far as your potential bankruptcy is concerned, only your income would be taken into account for the purposes of determining whether you should make any payments into an Income Payment Agreement after your application is accepted. You will be asked about the incomes of others in the household, but this is in order to ensure that your contributions to bills are proportionate. As you have zero income at present, your contribution will be 0% so it's not an issue.


Is there any connection between your credit file and that of your husband? For example, do you run a joint bank account? Have you applied for credit jointly in the past few years? If so, you may need to sever any such connections prior to bankruptcy and ask the credit agencies to "disassociate" your respective records. This will mean that your husband's credit applications are not influenced by your personal credit history.


Hope that helps.


Dennis
@natdebtline

Annie35

Thank you, yes it does help. We've no connected finances aside from living together. Bit unfortunate about the dro & mortgage (ooh I hate that flat anyway! ) I'm going to try & ask for a get out on the business lease first anyway

downhillfast

You say your husband is looking to take out a mortgage soon? Would that be for a property that you both intend to live in? If so then you may find that some lenders will have a problem with a spouse not being on the mortgage... and putting you on a mortgage application with a recent bankruptcy would be pretty much an instant 'no'.

tomtontom

His incomes artificially high this year as he's wanting a mortgage in April but it's not sustainable, it'll halve for next year

Hopefully you don't need it pointing out what a very bad idea this is. A mortgage is a long term commitment, taking out a high amount in the knowledge that next year your income will halve would be extremely foolish.