Wot a life's thread.

Richard_S

Hi Wot a life,

It would be much better if one of you could avoid bankruptcy; it does make things a lot easier if one partner is still solvent,

What is the split of debt between you and your O.H, including joint debt?

Six months before our bankruptcy we were a long way short of meeting our commitments; six months after, we were generating an acceptable surplus; twelve months after we bought the B.I in our house.

As things stand at the moment, there's no reason why you shouldn't do the same.

Best regards

Richard

wot_a_life

Hi Richard,

The total amount of joint debt is £59,700

If OH declared bankruptcy, it would leave me with debts of £24,900, this includes my unsecure debts and our joint debts that would obviously be passed to me.

Then there is the mortgage arrears of £3094, and there is a charging order on the property of £2,300 in OH's name only, so would that be cleared in his bankruptcy too?

He has agreed to file for bankruptcy, but is worried about the house. I have seen some rental properties in the area which range from £1,500 pm to £600 pm

wot_a_life

Also, if he went bankrupt and I didn't, then would the OR only take his equity into account and would the charging order be deducted from this?

Richard_S

wot_a_life wrote: »

Hi Richard,

The total amount of joint debt is £59,700

If OH declared bankruptcy, it would leave me with debts of £24,900, this includes my unsecure debts and our joint debts that would obviously be passed to me.

Then there is the mortgage arrears of £3094, and there is a charging order on the property of £2,300 in OH's name only, so would that be cleared in his bankruptcy too? He wouldn't be personally liable for it, but it would still be secured against the house. Has it got to the stage of being a final Charging Order? There are two stages, and if it's only got to the first stage then bankruptcy wipes it out. If it's got to the final stage then it is secured against the property. Not that they would do anything about it while your house is in negligible or negative equity.

He has agreed to file for bankruptcy, but is worried about the house. I have seen some rental properties in the area which range from £1,500 pm to £600 pm

How much would it cost to rent a house that's in keeping with the size of your family? With two children, that would be at least a three bedroom house.

Richard

Richard_S

wot_a_life wrote: »

Also, if he went bankrupt and I didn't, then would the OR only take his equity into account and would the charging order be deducted from this?

Hi Wot a life,

If only one partner declares bankruptcy then the O.R only looks to realise 50% of the equity, but if the equity is negligible or negative then it doesn't really make any difference; we bought the B.I in our house for £1 each.

The Charging Order is treated in the same way as a mortgage or secured loan, so yes it would be deducted from any available equity.

Richard

wot_a_life

I think it's got to the final stage as they last wrote a while ago to tell us that they were now going to apply to the courts to force the sale of the house. They haven't done this and I don't think they will.

I spoke to National Debtline some time ago and spoke to someone from insolvency, he said "ask yourself why has none of these creditors filed for your bankruptcy or tried to force the sale of your house?" He concluded by saying, "because there isn't enough equity to cover their debt AND the fees and they know it"

If we rented a property in our area, it would probably cost us in the region of £850 - £950 pcm