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| rv02 |
Posted - 18 August 2008 : 11:46:29
Hi I was wondering whther someone can help me to answer my question.
Both myself and my wife are thinking og going bankrupt. We have opened a child trust fund for our 2 1/2 years old about 2 years ago with the voucher that was send o us. since then we have been putting £100 a month into this. Also we opened another child account for her school fees which her grandparents and ourselves put money into this . The secomnd account is under our name until our daughter reaches 18.
will any of these accounts be closed and the money will go to BR or since its the child trust fund (the first one) we can keep that.
Also we are in a negative equity, we pay total of 2400 in mortgage and secured loans. If we want to keep the house will OR let us as some one told us today that they will not allow this as we can rent cheaper. will this mean that our secured loans is wiped once we get rid of the house?
Any advise will be appreciat it |
| 4 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 18 August 2008 : 14:52:22
Hi rv02
a DMP is a Debt Management Plan.
There are quite a few company's around the country that can arrange one of these for you.
You advise the company of your income and expenditure, as you would do in BR or IVA.
Let's say your debt is £60,000.
From your I&E it is determined that you have a disposable income of £500 per month.
The company would write to your creditors and, after taking their own fee, offer a sum to each creditor each month which is calculated pro rata.
If the creditor's agree to the proposal the DMP can go ahead.
The positive side is if the creditors accept AND agree to freeze any further interest on the debt, you would pay the £500 monthly for 120 months to pay the £60K debt in full. No need for BR and all debts paid.
The downside is all DMP's require that you repay your debts in full unlike IVA where 40% may be ok.
No creditor has to agree to freezing the interest AND any creditor can change their minds at any time as it is an informal arrangement unlike IVA and BR.
If the account is in your daughter's name and you and your wife are just signatory's that is ok.
If you feel you may still like to take advantage of professional support please feel free to call the freephone helpline number and leave a message for me which includes your name and contact number and I would be happy to speak with you informally. Should you then decide you would like me refer your case to a company that charges realistic fees for a quality service I'd be happy to do that too.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| rv02 |
Posted - 18 August 2008 : 14:14:45
Also sorry for being stupid can you please let me know what does DMP mean? |
| rv02 |
Posted - 18 August 2008 : 14:13:27
Thank you very much for the advise. It does sound complicated and this is why I dont mind paying someone for good advise. The firm that was going to charge me are keep pghoning me up and this is why i have reservations on them. I just need to spend my few remaining pounds to have someone give me the right advise and ways of doing things.
Also if my daughters name is on the seconmd account which I think it is as it is her account would that be ok?
Thaks again for your help |
| John |
Posted - 18 August 2008 : 12:34:00
Hi rv02
let's take one point at a time.
The child's trust fund is safe but I would cease making further deposits for now if you intend to go BR.
The 2nd account is an issue as it's in your joint names and no mention of your daughter on the account.
The bottom line in order to determine the best course of action here is what is the current balance on the account?
Re the house, in theory the OR is, indeed, able to force a sale if he thinks this will free up considerable disposable income which could be directed toward an IPA.
There is, however, a way around this and the practicalities of it depend on which of you owes what. If you hold the majority of the debt in your sole name, and your wife the smaller proportion, you could go through staged bankruptcy.
That is, your wife goes into a DMP for the duration of YOUR BR contributing to her sole and your joint debts if you have any. The house cannot become part of a forced sale as your wife is not BR and any forced sale would infringe on her rights to her own BI in the property.
When offered by the OR, you arrange for a 3rd party (close relative) to buy your BI.
Once you are discharged after 12 months she could go BR and her BI can now be offered to you.
The house could not be subjected to a forced sale as the 3rd party still holding what was your BI would have their rights infringed if the OR were to consider it.
Once you are both discharged your wife could buy what was originally your BI back from the 3rd party.
Complicated? maybe, effective? very.
And, if I may say so, the type of advice the firm wanting to charge you a large fee, which you mentioned in an earlier post, should have made you aware of.
HAve this one on me!!!
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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