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| Rosey321 |
Posted - 22 April 2008 : 23:20:09
Hi all
My wife and I are due in court on May 12 to hand in our bankruptcy petitions.
To summarise our situation, we own a house worth 185k (under offer), we have a mortgage with 172k outstanding and have two secured loans (65k and 20k respectively), and unsecure debt of 20k
Having been fighting fires of debt for about three years, we decided to move into rented to greatly decrease our outgoings. However, the secure loan companies won't let us move because of the negative equity.
Therefore, we have decided to move into our rented property (end of this week), cancel our secure DDs, go BR and then hand in the keys to our house for a voluntary repo, the shortfall of which is to be swallowed by the bankruptcy. Then aim for a fresh start!!
Questions:
1. On the SOA, I'm a bit confused about how joint debt gets listed? Is it worth putting outstanding amounts on both of our forms or is it somehow split?
2. Income on SOA: Again, I assume for instance I can't put down the food allowance for 2 adults and a child and then my wife put down the same allowance down. Should we split income as well?
3. In the outgoings portion, should I list the secured loan monthly payments? After all, I'm not going to pay them again. However, I'm worried that by not listing, it makes it look like I could have avoided the BR route (which we certainly couldn't do in our current situation). Should I list the new 'rent' outgoing instead of the old 'mortgage'.
I suppose what I'm really unsure of on this question is should I list all the outgoings that got us into trouble or should I list the ones that should be happening as a result of the planned voluntary repo. I'm almost certain that we will need to pay into an IPA but just worried more about initial impressions.
4 When in most people's opinion should I hand over the keys? After moving into rented this wkend? After the BR hearing? After seeing the OR? Does it matter?
Who should I hand them to? The main mortgage lender? The next charge? The OR?
5 I know the judge will want to know that we have had expert advice. I have had an hour long chat with National Debtline and read all the stuff they have sent. Will the judge want to know that my wife has chatted too with them or will he/she be satisfied that I have briefed my wife accordingly?
6 I have told our conveyancing solicitor our plans. I'm suddenly paranoid that she might inform the loan companies who could somehow legally put a stop to our plans or find a way of ensuring we pay the shortfall back one day. Am I worrying over nothing here? As the BR is only a couple of weeks away, I guess they might not have time to do anything anyway. I doubt its my solicitors place to tell them this anyway but if anyone can put my mind at ease, please do!
Thanks for patience reading this, any advice greatly received. |
| 3 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 22 April 2008 : 23:59:09
Yes - the same OR will most certainly deal with both of you, and you can often be interviewed together. The IPO figures and your discharge dates could well be different - as the bankruptcies are individual and not joint.
Credit card agreements are rarely in joint names, and therefore you should list them on the prinicple card holder's application form only. And if your circumstances leading to bankruptcy are similar, it is fine to copy the statement.
I do not think that your wife's job would be affected, but best to check with her contract of employment to be sure.
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 |
| Rosey321 |
Posted - 22 April 2008 : 23:48:48
Thanks Melanie for such a rapid response.
Would it be likely that the same OR would deal with both of us? I gather we would need separate OR interviews and be subject to separate IPA arrangements? (and possibly seperate discharge dates!)
I guess if I know its likely to be the same OR, that would make the form-filling easier.
I imagine with credit cards it would only need to be written on the main card holder's list?
Also, in the portion where you can write up to 4000 words about the reasons you have got into debt, would it be acceptable to pretty much copy word for word?
One further question for tonight: my wife is a primary school teacher. Would BR threaten her job in any way? My web research seems to suggest only school governors need worry and local authority workers. However, I think she is employed by the local council.
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| melanie_giles |
Posted - 22 April 2008 : 23:26:07
Hi Rosey and welcome to the forum
Dealing with your queries in the order they have been raised:-
1 Show the joint debts in their entirity on both sets of forms. You are jointly and severally liable for all of the debt, regardless of the fact that they are in both names.
2 I would show a full family budget - including both incomes and all expenditure on each form - but make it clear that this is for the family and not just yourselves.
3 There is no need to include the secured loan payments in your expenditure if you have no intention of paying them into the future.
4 I would personally wait until the bankruptcy order is made to hand over the keys to your property - as this will be with the OR's prior knowledge and consent.
5 I feel that the judge will accept that one of you has taken advice and briefed the other.
6 The secured loan companies cannot stop you moving into rented accomodation, and you no longer require the services of the solicitor in any case if there is to be no sale.
Hope my responses help, and do not hesitate to ask any more questions which might spring to mind.
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 |
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