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| jay-10 |
Posted - 11 April 2008 : 18:49:35
Hi,
I am currently on the brink of looking at bankruptcy.
Due to a failed business (after 3 or so years of running ok) I am left with debts I cannot pay.
I currently do not have work as the business wound up recently and I have been signed off by the doctors due to stress.
My wife works and we own a house. There is at most 5k equity in our property. (especially considering the current market)
We have the option to move abroad and live with family for free and effectively start again. (My wife is from abroad and we both have Visas)
We have around £35,000 worth of debt and because it is only split between 2 creditors and because I have been signed off and are currently not working we cannot look at the IVA route. (Not to mention the fact we would probably find it impossible to pay back at the moment.)
Our debt payments are just over £860 per month.
Our mortgage is a similar amt and then we have all the bills.
My wife has an ok job but obviously we cannot afford to continue like we are, even if I work full time whilst signed off with stress, our joint income would leave us with less than £150 per month.
My questions are basically:
As we have a property with a small amt of equity, our worry is a different one to most.
We have the option of a fresh start abroad without the overhead of a mortgage payment each month, the problem here is obviously we need to sell our house to get rid of the overheads of paying our mortgage and allowing us to move and start again.
Unfortunately we are unsure if we will be able to sell the house in this market.
What happens if we cannot sell? As there is a small amt of equity in the property, does this mean they would not sell/reposses during a BR if we couldnt sell it before going BR?
(therefore effectively meaning we are stuck in the property until we can either sell or are forced into repossession due to not being able to pay?)
Lastly, We have both been scared about both the payment orders and actually being accepted for BR,
At present if we moved, I would not have a job (as is the case now) and therefore no fixed income, and my wife would also not have a job at least initially.. Would they tell us we could not move abroad or decline BR? And how would we pay a payment order if we had little to no money when we initially move?
(The fact we can stay with and have the support of family and also have a FREE roof over our heads for a while is a huge thing for us and something which we really need at this point. Thankfully the family have agreed to foot the costs of us getting there for us.)
Sorry for the long post and lots of questions, We had never thought we would be in this situation and therefore really dont know the answers.
Thanks,
J |
| 7 L A T E S T R E P L I E S (Newest First) |
| Helpful Advice |
Posted - 12 April 2008 : 18:58:46
Hi Jay-10,
As Paul says you have a lot to consider and some decisions to make regarding moving forward, I feel you should take some advice from an expert, may I suggest you contact Paul via his website link as he is very experienced in these areas.
I hope this helps,
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| Reviva UK |
Posted - 12 April 2008 : 16:05:48
Hi Jay 10
really recommend you speak to a recognised Insolvency Practitioner ( Such as melanie as she seems to have a really good reputation here on the forums and in the industry), alternatively you could benefit from a discussion with a bankruptcy assistance expert who can help you work out a plan so that you can both get on with moving.
I fear that the house may prove to continue to be a problem in this current climate as values are falling and mortgages are proving harder to obtain for borrowers.
The last thing you need is to hang around for a further 6 - 9 months only just managing to hold things together while the property market changes for the worse.
Best scenario is that the house goes without any negative equity really soon. The worst scenario is that house prices fall leaving you both in negative equity and in the wrong country.
Lots to think about and plan for
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| jay-10 |
Posted - 12 April 2008 : 10:52:01
Thank you for the advice, if we did manage to make anything from the sale of the house we would most definately use it to lower our debts but its more about removing the liability of the mortgage payments each month, moving on and starting again without the overheads as we have the opportunity to do so.
I am not sure what you mean by a "pre-packed bankruptcy"?
As for the property being included in the bankruptcy, will this effect my wife too if that happens? (Its a joint mortgage, at present we were looking at just me going BR due to the debts being in my name, I would obviously like to not involve her if I can)
And re the mortgage arrears, we dont have any arrears at present, we have always paid everything on time in the past.
In all honestly, we would both rather avoid the stresses of trying to sell the house if we can, especially as it would most likely COST us money to do so but we dont know our options if we cant sell. We most definately dont want to be stuck in the house and just not be able to pay the mortgage and perhaps loose the option of a fresh start..
Thanks. |
| melanie_giles |
Posted - 11 April 2008 : 22:16:58
That's good advice from Paul about a pre-packed bankruptcy - just be sure that you are not dissipating assets at a time when you ought to have creditors interests in mind as a priority.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Reviva UK |
Posted - 11 April 2008 : 20:57:15
You can certainly include the property in the br.
Do you have any mortgage arrears at present?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Reviva UK |
Posted - 11 April 2008 : 20:54:43
Hi jay-10
perhaps you should start at what you want to achieve and work backwards.
So assuming you want to live & work abroad have you got a timescale for this?
What will it cost to relocate abroad and how will you fund this?
what will you do with your excess furnture / car etc etc?
Assuming that thee is little or no equity in the house ( probably negative because of estate agent & soliciotr fees) then what are you going to do with this?
Sounds like you need a plan of action with s specific workable timescale.
Really would suggest that you speak to an assisted bankruptcy specialist who can help you work out a way through these confusing times and help you on the road to a new life.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| jay-10 |
Posted - 11 April 2008 : 18:54:55
just to mention, it is a joint mortgage.. (if that is important..) |
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