considering bankrupcy.

emmaroids

ok im having a few cash flow problems just lately, none of its flowing my way
details can be seen here...


http://forums.moneysavingexpert.com/showthread.html?t=825971


i have no equity in my house so if i went BR would i lose it? i was told i could live here for up to a year?
how could i find out for sure before going BR?
how would things like wages and tax credits get payed to me if i cant have a bank account due to BR?
outstanding on my mortgage is 73k
secured loan is 9k
and my DMP with CCCS they say i have 13k left

so that 95k all in and my house would maybe get that on a good day

with mortgage arrears i am paying nearly 700 a month, secured loan is 126 a month and my DMP is 126 a month.
thats almost a grand a month before other things like council tax, electric, food etc.

i am looking for more work but its anyones guess when i will get some.

so how does BR work?
in scooby terms please lol

emmaroids

according to an article on the BR board i should be able to keep my A&L account, so should all my direct debits and wages etc be kept as is?

FeelingLow

hi Emma
have you contacted one of the free debt charities for advice on this? this should really be your first port of call,

i'm sure somebody with experaince will be along shortly to offer you more advice

wherediditallgo

Hi,

You really need to speak to one of the debt charities in my signature, as they're best placed to advise you on your particular situation. There are no guarantees about being able to stay in your home, & I doubt that you could find out "for sure" before going BR since it's only after you've done that that your creditors will start to take a different tack with you.

As for A&L, they may well not let you keep your account. When I went BR, I had never owed them a penny, yet once they knew I was BR they suspended my account at close of business the same day, & confirmed it was permanently closed by letter about 10 days later. There were a few pounds still in the account, & I had to get the OR to write to them & say I could have it, otherwise they'd have sent it to the OR.

I'm not trying to be the harbinger of doom here, but your circumstances are quite involved, & I think they need someone impartial from the charities to take a first look at them & work out what steps can be taken, & in which order to do them.

RAS

emmaroids wrote: »

i have no equity in my house so if i went BR would i lose it? i was told i could live here for up to a year?

outstanding on my mortgage is 73k
secured loan is 9k
and my DMP with CCCS they say i have 13k left

so that 95k all in and my house would maybe get that on a good day

Emma, you need to get some really good advice on this because I do not think that you have the equity situation right.

if your house is worth £95K and you only have £82K worth of secured debts, then I think the equity would be £13K less any costs sale/early redemption penalty.

Please contact one of the debt charities and get this absolutely clear before you decide what to do

emmaroids

ah right, don't i count the unsecured debts? i assumed that all debts counted if working out equity in a house?

i will speak to some advisor's on Monday.

dodecanese

Hi emma,
As said before- you really need to get thorough debt advice. I went bankrupt recently- my house is in negative equity- at the moment Im hoping to try and stay in it.

You do not sound as if you have neg equity. My understanding regarding any equity in a property is that the OR will want your half of it( if the prop is joint owned)- but you may still be allowed to get someone to buy you out if they can raise the amount the OR agrees on. I think you have a year to move out- especially if you have kids, I dont think they just chuck you out.It sounds rather involved so you really need specialist advice. With the mortgage arrears too- once they stop and the mort goes back to normal this would free up more cash for you/the DMP.

Could you sell the property and clear the mortgage- I think I read your mortgage payments were very high? It may not clear the unsecured debt- but at least it would free up more money to put towards paying them.
As Ive found- property and bankruptcy can be pretty uncertain- you dont actually know what an OR will/wont do until you actually go bankrupt.

Regarding the A&L account- they may let you keep it but most banks do not like bankrupts- Barclays and the Coop are the only two that are "bankrupt friendly"- I found the Coop to be excellent.

emmaroids

dodecanese wrote: »

Could you sell the property and clear the mortgage- I think I read your mortgage payments were very high?

hi.
i have been advised to put my house on the market and get some time on interest only, and not to sell for any less than the asking price.
during this time i could well be in a better job and able to make the repayments, and if i get the full asking price then all my debts get cleared.
my mortgage payments at the mo are 700 quid a month with interest only they would be 360 quid give or take.

crikey its a bloody minefield

dodecanese

It IS a minefield- as in your previous post- unsecured debts are not included in the equity- if you sold you would clear the mort/sec loan and still have the unsec debts. You could use any surplus to maybe clear some of the unsecured stuff though if you wanted.

The advice about the int only payments is good- it gives you breathing space while you decide what to do.
I tried this with my lender, but because my mortgage is an "old product we no longer offer" they wouldnt entertain int only payments (tho my rate is pretty good).

Bankruptcy has its pitfalls too- you basically have to let the OR decide what to do with the house. Even though I have negative equity and should be "safe" from the OR (for now) a lot is still up in the air. A lot of landlords and letting agents are also not too keen on bankrupts- though it is still possible to find rented accomodation.

Good luck in deciding what to do. Try ringing the Insolvency Service too on 0845 602 9848 for any queries on property/bankruptcy- I found them very helpful.