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| indy2005 |
Posted - 28 May 2008 : 09:45:30
Hi,
Too late now but think I have made a bad decision. I owe 55k and went BR last week. 70K equity in house, of which I have stated none is mine as I withdrew 65K 2 years ago. IPA payment is likely to be 7-800 a month.
If the OR overturns my house transfer to my wife and asks me for 35K, I will be paying back more than I owed originally as I also have 5K of shares held in trust at work.
If my mum can offer a 10K nuisance payment on the house, then it may have been worth while, but still it means I may have gone BR to save 20K. As I earn 55K a year and have potentially ruined many future employment opportunities...I am beginning to regret this.
The only reason I did this was because most of my creditors refused to stop interest and charges, but if I had stood my ground a bit longer all debts would have been passed to agencies where the interest would have been stopped.
The only thing bankcruptcy had going for it was a 3 year timeframe over a 5 year IVA, or a 10 year debt management plan. But I cant help feeling I have put the house at risk for what were unsecured debts.
My main panic is that they wont even accept 20K as a payment for the interest in the property and want 35K, in which case we are homeless.
i |
| 4 L A T E S T R E P L I E S (Newest First) |
| indy2005 |
Posted - 28 May 2008 : 11:55:43
Thanks,
Just waiting to get the interview over with to see how this is going to pan out. The only fly in the ointment is that by consolodating debt, a judge may rule my wife benefitted (although me transferring secured debts in my name to unsecured debts in hers/mine is hardly a benefit!).
I dont want it to get to court, but am unaware of the process or what discussions I will have around this. Dont want to offer money unecessarily, but dont want it to get to court either. Will the OR one day say "we have sought legal advice and are taking you to court to reverse the transaction", or will there be a period of "haggling".
Regards
i |
| JulianDonnelly |
Posted - 28 May 2008 : 11:18:06
Hi Indy,
Just remember that being in debt is not a criminal offence. As long as your "story" marries up with the story told by your financial records, you have nothing to worry about.
In respect of your property with the evidence you are collating you or your wife has a strong argument, there is an argument that you have since developed a proprietary interest in the property by contributing to the household bills, but I doubt they could claim a full 50% entitlement.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| indy2005 |
Posted - 28 May 2008 : 11:07:07
Hi Julian,
You always cheer me up. But I have heard different opinions on this forum. I have been told it is complex issue and even that my wife would have benefitted from me reducing my debt and so did benefit from the 65K in some way. I would be happy with anything from £1 to 5K.
This is linked to my Old Statements thread. I have a bank statement showing money out to my creditors, but it is obviously not clear that the creditors are mine from a bank statement. If I could get the statements from the credit card companies of the receipt of the funds then the paper trail is complete. I suppose I shouldnt worry too much as I know the data is out there somewhere, just not sure who's responsibility it is to gather the proof.
On another note, I am bit reluctant to get the statements as they show a sorry story of my state of mind at the time. Although the debts were cleared, I think I went and racked them up again as soon as the cards were zeroed...and am unsure how this will affect the BI claim. I guess it wont (its not illegal, I was just stupid) and they will look at the transaction in isolation....65K from house, 65K to creditors.
Regards
i |
| JulianDonnelly |
Posted - 28 May 2008 : 10:48:58
Hi Indy,
If the £65k was used to pay off your sole creditors, than under Equity of Exoneration principles (otherwise known as Marshalling of Assets), you have already spent more than your fair share of the equity. You will need to provide evidence to the OR that this is what the funds were used for.
If successfully proved, it is likely that the OR will just sell your beneficial interest to your wife for £1 + costs (total circa £250).
Hope this helps.
Regards.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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