Can I become Bankrupt and keep my house?

Miss_Marple_2

JCS1 wrote: »

Think the OP needs to take more advice from the debt chartieis, as a DMP or IVA may be more suitable than BR.

Just what I was going to post - especially a DMP.

As all of these would ruin your credit rating, I think a few months of tightening your belt and you could make a real impact.

Treat it as a project, keep spending diaries, try and renegotiate anything you can, account for every penny, use cash back sites, use the snowball calculator and target your debts that way, sell stuff on ebay / car boots, look on the old style board for how you can reduce your food bill etc

Your 'fun' for the next few months could be seeing how much you can reduce your debt by (you'll be amazed by the satisfaction you get by clearing a debt / CC )

It just takes looking at things in a different way. You already know that things can't go on as they are - and once you get into the DFW life style, it will soon become a habit, which means that you will never go back to being in large amounts of debt. There's loads of advice on these boards, so have a good look and you'll hopefully find that you can manage without going BR - it is not an easy route, as most people here will testify to.

If you are looking for some inspiration, I love this thread:

http://forums.moneysavingexpert.com/showthread.html?t=908871

(I'm hoping the link works)

The OP has found lots ways to reduce his outgoings, it makes interesting reading.

PV1971

I read about your situation and maybe it would be a good idea for you to investigate and find more about IVA (involuntary arrangment) would be a better option for you as there would be still an insolvency official that will meet with you and your creditors to pay what you can afford without loosing your home and even some other assets there in ands outs for this as well however it may be worth investigating before making a decision about bankcrupcy..... Good Luck

smilernpb

Hi

My hubby and I filed for bankruptcy on 30 April 2008 and if there is one thing I learnt it is to get advice from as many people as possible. Please remember that each and every person is treated differently and no matter what, I don't think any two cases are the same.

Regarding your home - what I was told was that if you are up to date on the mortgage (or relatively so) with no threats of repossession then they pretty much leave it be, assuming you don't have much equity, which taking into account your mortgage and secured loans, you don't. As you have children, the OR cannot immediately take your home from you, or make you sell for the first year. This info can be found on insolvency.org.uk under the 'what will happen to my home' leaflet.

I spoke with CCCS regarding our situation, some people I found helpful, others I didn't. I ended up taking note of who was helpful and talking to them.

Things like mortage, secured loans, gas, elec, mobile, food, life/home/car insurance, petrol/mot/maintenance cost for cars, childcare costs including clothing and stuff like that would come under your essential expenses, remember to include tv licence and things like that. Sky would not. However if you wish to keep that, then that is your choice. We have, so I will not judge. Things that may not get included as essential would be things like internet, mobile and the cost of two cars. However, the OR would appreciate that you may need two vehicles as both you and your wife work, but perhaps not two vehicles with £19,000 outstanding on them. I xpect what they would do would be take the cars from you, return to company and include the debt in the bankruptcy allowing you an amount to buy two cars. But that is just a guess? I doubt the scenario about your wife dropping you off at the station would be possible with the cost of train fares increasing, as this would just up your expenditure.

Hope this helps.

fiveyearplan

Good advice Smiler and welcome to the forum.

This thread 8 months old so I don't think there is much point commenting on it. The OP has probably taken some action by now.

OP - if you do need further advice please post.

peachyprice

PV1971 wrote: »

I read about your situation and maybe it would be a good idea for you to investigate and find more about IVA (involuntary arrangment) would be a better option for you as there would be still an insolvency official that will meet with you and your creditors to pay what you can afford without loosing your home and even some other assets there in ands outs for this as well however it may be worth investigating before making a decision about bankcrupcy..... Good Luck

Bit late mate, this thread is from May. I thin the OP will have made a decision by now!

out_of_cash

hi all,

anyone know what happened about the starbucks junkies cars,my OR has taken 5 wks so far scratching his head as to whether i keep it or not 1st of all it was no you cant and now havent a clue its like some sick wind up anyway ive cancelled the insurance as im unemployed car is worth about 1350 pointed out i will need this to look for work they didnt give a stuff.

good luck to all for 2009

out of cash

Merry_Gentry

out_of_cash wrote: »

hi all,

anyone know what happened about the starbucks junkies cars,my OR has taken 5 wks so far scratching his head as to whether i keep it or not 1st of all it was no you cant and now havent a clue its like some sick wind up anyway ive cancelled the insurance as im unemployed car is worth about 1350 pointed out i will need this to look for work they didnt give a stuff.

good luck to all for 2009

out of cash

Hiya - probably an idea to start a new thread as it's doubtful anyone will look at this one. If your OR has already said you can't keep the car it may be a case of them waiting to sort out collection, or offering you the opportunity to make them an offer.

Have you contacted them to ask?