bankrupt without home?

sunshine124

stupid me, but what does OR stand for?

tigerfeet2006

sunshine124 wrote: »

stupid me, but what does OR stand for?

The OR is the Official Reciever. S/He will deal with your friends BR.

fiveyearplan

if you own (or are paying a mortgage) a property and have equity in it and go BR the chances are you will lose it.

You won't necessarily lose your home. If you don't have much equity then you could have friend or family member buy it for you and you usually have a year for them to come up with the money.

tigerfeet2006

tigerfeet2006 wrote: »

This is why she needs professional advice asap. Hopefully with the holiday season it will slow them down a bit.

CCCS is open Thursday 8am to 5pm. Payplan is open Thursday 10am to 2pm.

Wasn't sure if you had seen my post with when the debt people are open again. Unfortunatly National Debtline is not open till after New Year. While you are waiting to ring them have a good trawl around the board to get a feel for what will happen.

If you have any more questions just ask.

Wishing your friend allthe best and may I say what a lovely friend you are helping her like this.

sunshine124

Thx for all the advice guys, I have known her since we were kids and I hate seeing her in so much worry. All this is getting a bit much for her and she wasn't aware of this website so I thought I'd get some advice for her.

I do appreciate all this advice and I know it's christmas and all, and people are very busy, but it's a depressing time for her. Anyway all this info has helped a great deal so thx to everyone!

tigerfeet2006

It's a pleasure Sunshine. I know it's hard at this time of year. If she has access to the internet at all it would be a good idea to get her registered here.

Walter_J

ts_aly2000 wrote: »

Stall them. Lie to them. Tell them that black is white, whatever they wish to hear.

Once she's bankrupt it doesn't matter squat.

Imagine the whole thing as a game of Poker or Trumps. Where bankruptcy is the overiding premium most ultimate trump card that you can possess. The good thing is that DCAs and lenders think that they're really good at Poker.. In actual fact, they're awful at it.

Bankruptcy is the way in which all cards come to the table and are shown. DCAs and lenders threaten bankruptcy and all sorts of nasty things believing that the other player has a really good hand. Which in reality they don't, so the whole thing is totally backwards. You're forcing someone to show a really bad hand when they've been repeatedly telling you how bad it is all along.

Bankruptcy is the ultimate trump card. She doesn't have to inform or communicate with ANYONE. Her only concern is the OR. In the meantime though she could tell her lender than she's going to be giving them £5,000 in the new year as she's won the lottery.

Once she's bankrupt none of it matters. To give you an idea of the power of the OR; they're often based in the same buildings as HMRC. That's how powerful they are. They certainly can't prevent a repossession, but they can force the lender to act fairly and reasonably. The OR will want to examine her finances in total detail, whether a lender likes it or not.

This is excellent advice.
The creditors will threaten bankruptcy but it is actually them who are frightened of it. They then get nothing.
She should go bankrupt the moment the courts open after Christmas.

sunshine124

hi all and a happy new year to you all!

ok I looked at my friend's current situation and she has no job and is in alot of debt. She has not paid her mortgage for 1 year! and has other bebts of about £80,000 - £90,000 she also has a CCJ and hasn't paid anyof her water, electric, heating bills. She is under so much mental stress she does not know what to do. i told her to go bankrupt and she is scared. She also does not know if all of her debts will get wiped off through bankruptcy, and says that she will still have bills to pay. Her house is worth about £100,000 but luckily her parents can let her move back in. her parents are pensioners so they cannot help her.

Does anyone know what debts cannot be written off?

Any advice would be grateful.

tigerfeet2006

Have a read of section 7 here:


Quote:
In relation to your creditors If you are made bankrupt, you must not make payments direct to creditors. Creditors to whom you owe money when you are made bankrupt make a claim to your trustee (that is, either the Official Receiver or an insolvency practitioner). They should not ask you directly for payment; if you receive any requests, pass them immediately to your trustee to deal with and tell the creditor that you are bankrupt. There are some very limited exceptions to this non-payment rule. The main ones are:

• secured creditors, such as creditors who have a mortgage or charge on your home Note: If mortgage payments are not made, the lender may sell your home.
• non-provable debts, such as court fines and other obligations arising under an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991. Non-provable debts are not included in the bankruptcy
  proceedings and you are still responsible for paying off such debts; and
• benefit overpayments, where the Department for Work and Pensions (DWP) can recover any benefit overpayments from any further benefits you receive. (maybe not any more)
  
• Student loans, since 1 September 2004 all outstanding student loans cannot be claimed in bankruptcy. They remain the responsibility of the (former) student to repay within the terms of the loan arrangement.
• If you were made bankrupt before 1 September 2004 you may still have to repay your student loan. Clarification should be requested from the Official Receiver who is dealing with your affairs.

Suppliers of services to your home (gas, electricity, water and telephone) may not demand from you payment of bills in your name which are unpaid at the date of the bankruptcy order. But they may ask you for a deposit towards payment for further supplies or could arrange for the accounts to be transferred into the name of your spouse or partner. You must pay continuing commitments such as rent (if you rent your home), together with any debts you incur after the bankruptcy.
http://www.insolvency.gov.uk/guidanc...bankruptcy.htm

Plus, if you want lots more info then dig through here:

http://www.insolvency.gov.uk/freedom...troduction.htm

(Part 1 & 6 mostly. There are some odd ones)

With thanks to Fermi

tigerfeet2006

She really, really needs to talk with one of the debt charities (links in my sig.)

She will have to anyway as the BR judge will want to know she's taken professional advise.