| T O P I C R E V I E W |
| dianeb |
Posted - 20 March 2009 : 21:03:16
hi there,one of my creditiors is taking me to court monday for a bankruptcy petition,am i likely to lose my home? my debt is £5075.00. im so worried.
diane |
| 15 L A T E S T R E P L I E S (Newest First) |
| dianeb |
Posted - 24 March 2009 : 12:06:50
thanks john,
my main concern now is getting the legal charge on the property in the 6 weeks before it goes back to court,otherwise it will result in bankruptcy and losing the house.
we have been advised to get legal assistance from a solicitor so the battle isnt over just yet. ill obviously post more as things happen.
regards
diane
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| John |
Posted - 23 March 2009 : 22:34:53
Hi diane
have been eagerly awaiting your post and checking the forum every half hour or so.
Firstly I am pleased to read that the bankruptcy application was effectively denied as it's a tough pill to swallow for the level of debt involved.
It's my opinion that it may be difficult to argue that your interest in the property is less than the sum of the payments. Therefore bankruptcy, if you include trustee fees, would have worked out more expensive in the long run and if you could not find the funds the home was at risk which from the start, I know, has been your main cause of concern.
On balance if you can manage the payments this may well be the best of a not so nice set of options.
It will be difficult at first but once you're into it the 18 months will fly by.
I do help all goes well from here on diane and wish you and yours all the very best.
John White
England Jackman & Spacey |
| dianeb |
Posted - 23 March 2009 : 22:10:59
hi john,
the outcome of the hearing today was that if i allow a charging order on my property with payments of £388.00 per month which would clear the debt in 18 months,then no bankruptcy judgement will be made.the case was adjournment for 6 weeks for me to more or less agree to this and seek legal advice.
came out of court feeling like id been kicked in the teeth as the judge was not at all sympathetic and was not interested very much in my side of the case,i got the feeling that she was basically there to either stamp the petition or not regardless of what i had to say and that she was very much on the side of the claimant.
i guess now i need to decide wether to allow this charging order etc to go ahead and put an end to the matter in 18 months. dont have much of an option really unless i want the debt to be higher!
thanks for your help and support it was very much appreciated.
regards
diane
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| dianeb |
Posted - 22 March 2009 : 14:52:47
thankyou so much john you have been extremely helpful and gave me more confidence than i had to start with on this matter.
i will of course let you know what happens tommorow so other readers gain information from it which may be helpful to them.
once again thankyou,you are worth your weight in gold.
regards
diane
xx
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| John |
Posted - 22 March 2009 : 11:58:36
Hi
the car being on HP is not included in bankruptcy so is safe from the OR. However, most HP agreements have a bankruptcy clause (check your paperwork) which states that the lender withholds the right to repossess the car even if payments are up to date if bankruptcy is declared. Hopefully as your husband is not declaring the lender will be fine.
As far as all the other info you have to hand including proof of your attempts to pay and the payment for Friday by all means take it along, and any other correspondence.
The truth is that all you can do is explain to the judge in as much detail as possible and provide all the evidence you can. The judge will of course decide.
What you must do is hold onto the belief that a way will be found to keep your home even if you are declared bankrupt.
John White
England Jackman & Spacey |
| dianeb |
Posted - 22 March 2009 : 10:20:30
incidentally john,when we cleared other debts with the same company in 2007 it has taken them almost 2 years to contact me about this one.when we were clearing our debts this one was genuinely overlooked.dont know if that counts for anything but thought id tell you anyway.
regards
diane
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| dianeb |
Posted - 22 March 2009 : 10:13:57
hi john,
the car is in joint names as this was the requirement at the time of purchase,it is on hp.
the hearing is in middlesbrough county court.
would you reccomend i take with me the returned postal order which i sent to my creditors and as another payment was planned to be paid friday take that too?
regards
diane
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| John |
Posted - 22 March 2009 : 06:29:18
Hi diane
I will keep my eye on this thread today as you need as much info as possible as the hearing is tomorrow.
Regarding the car-
Is it on an HP agreement or purchased via a personal loan?
Whose name is that agreement / loan in, yours or your husband's or joint? (It's irrelevant whose name the car is registered in with DVLA what's important is who has borrowed the money).
Regarding the paperwork you have received I'm not sure what it is but as you will need to attend court tomorrow don't trouble yourself with it now.
When you are in court the fact that the money is owed is not in dispute. The judge will allow the petition if he thinks bankruptcy is appropriate.
You should definitely take with you, if you do in fact have it in writing, evidence that you made an offer to Connaught plus the written acceptance plus all other subsequent letters that you have both sent and received.
If the judge believes the claimant has been less than reasonable he may decide not to allow the petition but make an arrangement through the court for an affordable payment over a period. For this reason anything that damns the claimant and might gain sympathy for you is worth having with you and placing before the judge before he makes his decision.
Tell the judge also that with your husband having paid the mortgage since day one, and all of the deposit monies, you do not believe that you have a financial interest in the property anyway.
Every little piece of info will help.
Incidentally which court will you be attending?
Anyway let me know about the car and we'll go from there and hopefully get you in as good a position as we can before tomorrow's hearing.
John White
England Jackman & Spacey |
| dianeb |
Posted - 21 March 2009 : 23:59:53
ive just gone through all the paperwork again and noticed a "notice of funding of case or claim" please could you explain what this is as i dont understand all the forms etc. i have noticed on it that where the claim number should be entered it has been left blank and i have no other documentation with a case number on,just a reference number on the petition.
diane
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| dianeb |
Posted - 21 March 2009 : 23:44:57
what can the courts place me in other than bankruptcy as i really dont want to lose my home.im absolutely terrified im going to end up homeless.
diane
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| dianeb |
Posted - 21 March 2009 : 23:42:36
hi john
yes i recieved a statutory demand on the 9th of january and the creditors petition on the 2nd march which states the hearing date.
i could try and raise the 5k by remortgaging again which we tried to do with our current lender,but unfortunately they are not doing remortgages due to the financial climate.
i could try elsewhere but in the time it would take to sort out im not sure if my creditors would accept waiting,and wouldnt it be too late anyway as the hearing is monday?
im sure they have followed procedure,although i have not recieved anything official from the courts to back this up other than a stamp on the petitiion.
i am expecting to recieve just over 1k in the next 6 weeks for back dated child benefit which will be going straight to my creditors.
diane
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| John |
Posted - 21 March 2009 : 22:11:52
Hi
probably a silly question but I will ask anyway, have you received a statutory demand at any time from the claimant and what evidence do you have that the hearing will actually take place?
(I'm just trying to establish if procedure has been followed or if the claimant is bluffing - clutching at straws I know).
John White
England Jackman & Spacey |
| John |
Posted - 21 March 2009 : 22:01:40
Hi
the court will not place you in an IVA as they are voluntary in that you decide to apply for it so you approach an IP who will determine whether one is affordable or not. The IP will then propose the IVA to creditors whilst you are bankrupt. If the creditors agree then the court will sanction the IVA and remove the bankruptcy.
The problem is you don't qualify as there are an insufficient number of creditors.
How much, in cash terms, by way of deposit was made at the time of purchase? And is there no way of raising the £5K against the remaining equity in the property?
John White
England Jackman & Spacey |
| dianeb |
Posted - 21 March 2009 : 20:31:58
would or could an IVA be put in place by the courts? im trying to guage the outcome of monday.
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| dianeb |
Posted - 21 March 2009 : 20:15:05
hi john thanks again for replying so soon.
in answer to your questions,no my hubby is not in a bankrupt position and he supplied the capital for the deposit.
im on incapacity benefit and have been for 8 years due to a chronic illness.my hubby contributes 1750 each month and i contribute 400 incap ben.we remortgaged once for debt consolidation,and have no other unsecured debts at all,the only debt we have is a car on finance which is due to be paid off next year.
we are very capable of paying this 5k debt off just not at the rate the creditors wish,surely judges look at both sides?
diane
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