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| claire25 |
Posted - 10 September 2008 : 09:05:24
Hi all,
another quick question, i think ive touched on this before. My OH is defintatley taking the bankrupsy road and i cant tell you how hard it was to come to that descision, but now that we have we are starting to feel like there is a light at the tunnel.
Im just not sure of my involvment as my name is on the mortgage (we are going down the voluntary repossesion route also) and also on his secured loan. Does this mean i will have to go BR to? What exactly will that mean for me?
Any advice massively appriciated.
Thanks c xx |
| 15 L A T E S T R E P L I E S (Newest First) |
| claire25 |
Posted - 10 September 2008 : 16:46:24
Thanks John,
You have no idea how helpful you are being!!
My loan for 2000 ends in about 13 months time.
His payments to his parents end in three more years (however his parents are currently in talks with this creditor as thier situation has changed so drastically in the past year that they may have ro reach a new agreement)
His court repayments still have a good three years left on them.
I can see why it makes sense for him to do it. He wages are and hours are terrible but i'm sure you can imagine he cant be picky about employment when you consider why he lost is last job. I would go down the BR route if need be. Is that what you would advise me to do?
Thanks SOOOOOOoooo much!! xxx |
| 369 |
Posted - 10 September 2008 : 16:36:33
Hiya Claire,
To be honest, if your OH goes bankrupt, all it will do is release any responsibility he has for repaying the debt. But, it will be left to his parents and to you. However, in turn you and his partners, without his contributions will not be able to pay the creditors, therefore suggesting bankruptcy for you also.
If your only concerns about going bankrupt are about losing your bank account and the OR saying how much you can spend each month i shouldnt worry. You can get another bank account with another bank, or you can talk to your own bank about keeping that account (but you cannot do this is your loan is with them as well).
The OR cannot tell you how much to spend each month...what they will do is see how much Disposable Income you will have after all of your payments... so you say you get £1000 a month, you would take off any rent, bills, mobile phone bill, travel expenses, food, clothing etc etc from that and be left with your disposible income amount, if this is more that £100 a month then you will enter into an IPA - which basically means that you will pay 50-70% of your Disposable Income each month. So if you have £100 left over after everything you would pay £50 to the OR (in turn the creditors) and have £50 left over.
Your Loan for £2,000 - when does that end?
When does your OH's loan to his parents end?
When does you OH's court payments end?
Just trying to see if there will be any money free'd up in the foreseeable future to avoid bankruptcy... |
| claire25 |
Posted - 10 September 2008 : 15:33:13
I should probably add that i have about £400 a month left out of my wage that could be considered as disposable income but this does not include cloths and travel expenses.
Sorry i forgot to add that. |
| claire25 |
Posted - 10 September 2008 : 15:21:57
Okay, here we go (this might take a while - bear with me)
He makes a payment to his parents for loan that they got out and shared with him. The arragement was for him to pay the first five years and them to pay the last. Since then one of his parents has been diagnosed with a serious disablity and can no longer work therfore even though the loan is in their name they rely on his payment each month. This is the highest payment (£350 per month) On the advice from the members on this forum, his parents are now speaking with this particular creditor to try and slash the monthly payment (i know this is another grey area)
On top of that there is the secured loan which is for 12,000 and he makes payments on that of £270 a month (brearing in mind they dont always get paid and almost never the full amount)and due to the arrears and interest rate on that loan we still owe about that amount even though we have been paying it for two years.
His board that he pays to his parents is £130 per month which he must pay as his parents now live on one wage.
The mortgage was for 72,000 and we have been paying that back at £455 per month, however once the debt got too bad we were forced to move home with our parents and let the flat to try and cover the cost of the mortgage at least until we came out of our fixed rate. The rent doesnt even cover the mortgage payment and being out of our fixed rate means it will probably be going up.
In Despertaton last year my OH took some money from his workplace. He was so ashamed he handed himself into the police. Needless to say he lost that job and has to pay the court back at £100 per month.
I personally have the bank loan which was for £2,000 and i pay £150 per month for that.
I also pay for both our mobile phone contracts which comes to £80 per month. I also have my own living expenses and help out with his.
My wage is £1000 per month. He comes out with £6 - 700 IF he has had some over time but he is not garunteed it. He is only garunteed 25 hours per week and is paid minimum wage.
I think that is about it. If im honest its not so much the loosing the credit that worries me but i really dont want to lose my bank account and dont want an OR to tell me what i can spend each month (althouh to be honest im not totally sure how that works)
Im sure BR is not that bad and think if i really had no choice i would do it but if there was another way i would really like to look into that.
I know i have rambled a bit - but thank you so much for taking the time to help me. |
| 369 |
Posted - 10 September 2008 : 15:01:46
Can you break it down for me?
How much is the loan for - how much do you pay?
How much does he owe and how much does he pay?
You basically wont be able to afford to pay for all of those things will you on your salary. However, if you have a year or so to go on the bank loan, that will free up some money for you - i know its a year away but it would help...
What money do you have left over at the end of the month?
I am racking my brains trying to think of a way out for you, where you wouldnt have to go bankrupt...
I mean it not the end of the world...i am bankrupt and due to be discharged in 2 months, and it's not been that bad..... |
| claire25 |
Posted - 10 September 2008 : 14:57:22
the bank loan has about a year left on it but the monthly payment on that isnt massive to be honest. We only have two years worth of equity in the property but weve had it on the market for months with no interest at all! that is why we want to do voluntary repossesion.
His other debts arent credit cards, they are just a build up of loans. Basically if he goes bankrupt then thats right - i willhavethe secured loan and the shortfall of the mortgage to take responsability for. He only earns minimum wage and is only garunteed 25 hours a week of work wich bearly covers living expenses so i cant see him being able to help out enough to make a noticable difference. But then i only earn 15,000 per anum myself so im not what you could call well off either.
This is why i dont want to go BR because i have manageed my accounts well, i have never missed payments on the loan and have never had any problems getting credit. But if he does go bankrupt then all of a sudden i will have all of this debt that i wont be able to afford to pay. Im so lost at the moment i just dont know what to do for the best, |
| 369 |
Posted - 10 September 2008 : 14:47:22
Seems as if you would have a good credit rating then, if you ahve managed your accounts well, would be a shame to have to go BR in your situation...
Does he have any other debts? Credit cards etc?
So basically if he goes bankrupt, all of the debt just goes on to you...and doesnt really help you as a couple financially at all does it. You will still have to pay for the secured loan, bank loan and mortgage and he just wont be responsible for any of it anymore - and therefore wouldnt really be that much better off for it anyway would he?
He is basically just getting his name off of it...
How much longer have you got to go on the bank loan and mortgage? |
| claire25 |
Posted - 10 September 2008 : 14:35:54
not at all - you are being very helpful.
The bank loan is in my name. It is with my bank and i am the one who
pays it every month, i have never missed a payment. It has always been this way. The only debts that are in joint names are the secured loan and the mortage. Obviously i wont know what the shortfall debt is untill after we give back the keys and the flat is sold.
Other then that all of the other debt is his and in his name alone.
I do feel i should avoid BR at all costs, as does my OH, but i wont have any other choice will i, i mean if i cant afford to pay the secured loan and the mortgage once the shortfall is annouced.
Thanks so much for your advice x |
| 369 |
Posted - 10 September 2008 : 14:09:39
Hi Claire,
what sort of money are we talking here? The thing is that even if he were to go bankrupt this would not stop the debts that you have "together". You would still be paying off the secured loan, is the bank loan just in his name?
If he went bankrupt and didnt have to pay the bank loan anymore, then he would have more money to pay off the secured loan with you...
I don't think you should go BR as well...if there is another way you can work it out.
But if you did go BR as well, you can request that your bank account isnt frozen - but run the risk that it will, you will have to fill in your income and expenditure and the OR will look at this and see if you have disposible income to pay into an IPA which lasts for up to 3 years, and your credit rating will be affected for the next 6 years or so.
Not scaring you, just trying to answer your previous questions. |
| claire25 |
Posted - 10 September 2008 : 12:56:15
because we dont live together in the property anymore and because the secured loan was his (and mine only in name) he has been making the payments to it, allbeit short payments and sometimes missed payments. I would help him with it moe but i already pay hs bank loan and help him with travel expenses and living expenses so it a not been possible to help him with payments toward that as well.
I am happy to continue paying the bank loan for him, that never been the issue. If there was no other way but BR for me also, does that mean i would loose my bank account and also, would an OR have controll over my incommings and outgoings?
Since hearing about how the debt will then fall to me, i have had to consider BR MYSELF serouisly for the first time instead of just my OH. I need some advice on the implications and if there is any other way.
Thanks |
| John |
Posted - 10 September 2008 : 12:43:20
Hi
as I don't know how you work out your finances with your OH it's difficult to know how your BR would impact on you.
The fact is your OH declaring BR means your contribution to the household is already going to be included in BR, albeit his BR and not yours.
I'm sure you will realise it's not the forum or your involvement that sparked the situation. I'm afraid that was done when you both signed the loan agreements.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| claire25 |
Posted - 10 September 2008 : 12:34:35
what will this mean for me? I will loose my bank account? Also will i be told by an OR how much i can spend of my own money and on what? i wont have a credit rating?
I came on here looking for a way out for my OH and in finding him one i have dug myself into the biggest hole!
Please, any advice would be soo very appriciated. x |
| John |
Posted - 10 September 2008 : 12:30:10
Hi
it is most unlikely that any secured lender would allow one of the two signatories of the agreement to be removed.
The best way out for you is to continue paying the mortgage and secured loan between you and write off your OH's current sole unsecured debts within the BR.
However, if this is not possible for the 2 of you too sustain then you will need to establish, after the sale of the property, how much the shortfall is.
You may then be able to pay the debts back through DMP or IVA. If there is no way that will happen either then to rid yourself of the debt you would need to declare BR.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| claire25 |
Posted - 10 September 2008 : 12:23:13
I dont earn enough in my job to pay all of his debt plus the short fall on the house. I have managed my money and my bank account really well since my first job at sixteen and i am not prepared to give that up and really shouldnt have to. Ive never had debt in m life untill meeting him, getting a bank loan for him and going in on the secured loan with him.
Is there anyway we could have the secured loan signed over to just him? is there any way to take my name off these things so that i am no longer liable?
If not, what would our other options be?
Many thanks again. x |
| John |
Posted - 10 September 2008 : 12:09:37
Hi
if you have signed the agreement then yes it will all fall to you. As a bankrupt your OH is exempt from the responsibility once the property is sold and the outstanding amount becomes unsecured.
Therefore under joint and several liability the lenders have nowhere to go but to you.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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