Renting Expensive House, will OR make me move

jmb751

Hi All,

Will have to file BR very soon, if my health lasts that long. Trouble is i'm in a 4 bed house, my GF and her daughter were staying here but they have moved out as things are going belly up. I'm guessing OR will make me move. Rent is £2400 p/m and my wages are £3400 p/m so i could afford it in theory but OR will want that money for IPA i should imagine.

I hear you say that i should move now get cheap accom and avoid BR, however I have a business that i ran on the side and it has gone pear shaped leaving me with a van hire purchase that i can't afford, so they will be calling in £32k + interest. I will need to pay it immediately with massive interest. I have found out as it is an 'unregulated' agreement so i have no consumer credit act protection and i signed a personal guarantee.

i'm now on mental health crisis watch and i cant face moving along with everything else plus i can't afford deposit etc for new place. Massive catch-22

Thanks in advance

Minkym00

The fact that you’re under the acute mental health team will be a factor. BUT you need to be wary of this as, unless you are in a position to fully co-operate then, the OR could seek a suspension of your discharge from bankruptcy. This means everything is put on hold until you are feeling better and in a a position to fully engage.

Honestly? As a single person in a 4-bedhouse then, yes, you are going to have to move. You will not be allowed the funds to pay for it as a bankrupt. It’s not fair to your creditors.

jmb751

Thanks for the info, that messes me up more, looking at living rough too on top of all this.

fatbelly

Jmb - sort out your accommodation first. Your major creditor has a number of stages that they have to work through so you do not have to petition for bankruptcy immediately.

Make sure you are banking where you do not have debts.

silvercar

Most people find that gong bankrupt improves their mental health as the burden of unmanageable debt is lifted.

Take it easy on yourself and go one step at a time. I would suggest finding affordable, decent and smaller accommodation should be done before the bankruptcy. There will then be less hurdles within your bankruptcy.

bradders1983

jmb751 wrote: »

Thanks for the info, that messes me up more, looking at living rough too on top of all this.

This isn't an over reaction at all, is it?

RattyIrk

As you are renting I concur it is likely they will look at the property. Are you though tied into a fixed term tenancy? This might buy you some time.

Also if you cannot afford a deposit for a new rental the argument is therefore that you cannot obtain alternative accommodation. If they forced you to move you could say it would be making you homeless.

I do not categorically know how they will deal with it so just some logical conclusions.

It is a dire situation to be in but one of the other posters is right. Once you get the first few months out of the way and into a more settled situation it will be a weight lifted. Whilst bankruptcy comes with it's disadvantages it has certainly been the right decision for me.

ACG

jmb751 wrote: »

Thanks for the info, that messes me up more, looking at living rough too on top of all this.

Hotel costs what? £30 a night?
£30 x 30 nights = £900.
I have literally just cut your monthly costs by £1500 in addition to gas, electric, water etc and more importantly stopped you having to sleep rough.

You could potentially pay off your debt in under 2 years, probably closer to 1 year if you let it default and made them a decent offer and at the same time avoid bankruptcy.

haras_nosirrah

ACG wrote: »

Hotel costs what? £30 a night?
£30 x 30 nights = £900.
I have literally just cut your monthly costs by £1500 in addition to gas, electric, water etc and more importantly stopped you having to sleep rough.

You could potentially pay off your debt in under 2 years, probably closer to 1 year if you let it default and made them a decent offer and at the same time avoid bankruptcy.

That really isn't a bad idea op - if you can find a cheapish hotel they may even do you a deal for an extended stay. No council tax, no utility bills. Only thing to sort out would be food but they may allow you a microwave, a kettle and you can at least feed yourself while you are sorting stuff out even if it is ready meals.

If you can avoid bankruptcy then you should be able to get into normal rental accommodation.

2400 on a 3400 salary and bills on top is unsustainable even if you didn't have the bankruptcy looming.

You can get out of this, you just need to think ahead and take action.

sourcrates

I have to agree your rent is astronomical, why on earth don`t you take the common sense approach and downsize, you can get somewhere for £600-800 a month easily, and as above, even a Travel-lodge or Holiday Inn type place can be utilized for a grand or so a month, far less than your current rent.

On that basis going bankrupt is a ridiculous notion, as the funds to pay the debts down would be released, you just need to better use the finances you currently have.

You never have to repay a debt in full, all at once, even with a court order, an installment plan can be arranged easily, so that argument holds no water, have you not taken advice on your situation OP ?

jmb751

Thanks for the advice but it's more complex than that.

I signed a couple of PGs Summer last year for a business I run on the side. Stupid i know, i realise now my mental health has been severely impaired for a while now.

Now I have been diagnosed with a serious neurolgical condition similar to MS and can't carry on bsuniess as my muscles are siezing up.

So on top of my current debts, the van finance company and the commercial lease PGs will be called in.

It would take years to clear. Van finance company contract says as soon as i default they reposess and i have to pay all remaining payments, about £32k

Thanks for all you replies,