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| Tina.sn |
Posted - 01 November 2009 : 20:21:24
Me and my partner are planning to declare bankrupt Jan, but i have a few questions, please can you help?
1 - We have a mortgage, the house is in negative equity, do i contact the mortgage company and hand the keys over, or do i leave this to the OR?
2 - I am due a bonus in Dec of 3k, but im planning to spend this prioir to declaring the bankruptcy to get a new place set up and paying for the bankruptcy fees, will i get into trouble for this? I will need to pay deposit and months rent up front, plus i need a few bits.....But i don't want to get into trouble for it
Thank you! |
| 3 L A T E S T R E P L I E S (Newest First) |
| gettingoutofdebt |
Posted - 02 November 2009 : 09:32:49
Hi,
1. You will need to hand the keys over and not the OR. The mortgage company will want you to sign a voluntary repossession form, which will probably contain a shortfall clause. You should read this form very carefully if you are going to sign it. If you decide not to sign it then the mortgage company will need to go through the courts to repossess the property, which will cost them time and money so they may put some pressure on you to sign the form.
2. The OR would expect any additional income to be spent on your debts. Can you not stop paying your creditors and use this money to save for the deposit/BR fees? This is normally what people do. I assume you aren't paying your mortgage any more as you are giving up the property. There is no problem using the bonus for your rental deposit/BR fees if this is the ONLY way that you can afford to do it but if you are not paying creditors and have a £3k bonus then the OR may ask some questions about what you spent the money on. |
| RHB |
Posted - 02 November 2009 : 07:57:27
I think if your bonus is spent on things like rent, deposit & setting up home you will be fine, but they might well frown on it if you blew it all on having a good Christmas |
| In 2 Deep |
Posted - 01 November 2009 : 20:35:19
Tina,
Welcome to the site.
If your property is in negative equity, then the OR will usually alow you to buy back the beneficial interest for £1 plus £211 solicitors fees each.
Regarding your bonus, the OR (official receiver) will frown upon the fact that you have acquired a bonus - spent it- then gone BR. It is possible you may get a BRU (bankruptcy restrictions undertaking), which simply means bankruptcy restrictions will be extended from 2 years up to 15 years (unlikely). You will still be discharged after 12 months.
Do make sure you seek professional advice from the experts who post on this site, and let us know how you get on.
quote:
Originally posted by Tina.sn
Me and my partner are planning to declare bankrupt Jan, but i have a few questions, please can you help?
1 - We have a mortgage, the house is in negative equity, do i contact the mortgage company and hand the keys over, or do i leave this to the OR?
2 - I am due a bonus in Dec of 3k, but im planning to spend this prioir to declaring the bankruptcy to get a new place set up and paying for the bankruptcy fees, will i get into trouble for this? I will need to pay deposit and months rent up front, plus i need a few bits.....But i don't want to get into trouble for it
Thank you!
Treat EVERY Penny as a prisoner. |
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