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| suzy123 |
Posted - 29 December 2009 : 09:02:46
Hi - I am consideirng going bankrupt. I owe around £35000. I have a mortgage and have around £15-20K equity in my home. I am single (living with a grown up daughter) and work full time. I currently have a DMP with CCCS and pay my creditors £99/month. The largest of my debts is around £16K. This company has taken me to court and obtained a CCJ and is now taking me back to court to obtain a charging order against my property in Jan. I have been advised to attend court and dispute this on the grounds that this would give them an unfair priority over my other creditors.
I am really struggling with the DMP. My bank has just informed me that they are cancelling my overdraft. My house needs ensential repairs (the main one being the roof leaking into my daughters bedroom) which i have no means to carry out. And i just can't carry on juggling all my debts.
I know i will lose my home if i declare bankruptcy but i don't see that i have any other choice at the moment. After thinking about this for a long time I think I have come to terms with the fact that i am going to have to go back into rented accommodation (and if the roof leaks there someone else will pay for it to be fixed).
What i want to know is how i should go about doing this. If i am going back into rented accommodation i will need money for rent in advance and a bond etc. Also i will need the £500 it will cost me to go bankrupt. I have been (unofficially) advised to stop paying my creditors, including my mortgage, and save this money for the expenses i have mentioned. Should i do this, or will this go against me? Also, when should i start to try to find rented accommodation? As I am worried that once i am bankrupt i will not be able to get anybody to rent to me. When will my house be taken from me? (my daughter is 18 and is already looking for somewhere else to live). Can somebody please give me some advice on the logistics of it all.
Thanks
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| 2 L A T E S T R E P L I E S (Newest First) |
| Housing |
Posted - 29 December 2009 : 10:57:19
Hi Suzy,
I am so sorry to learn of your problems.
As gettingoutofdebt has suggested it seems that BR is your best option.
If you want to save the house, you need to need a quick valuation from an estate agent - I suggest an independent one (not part of a corporate chain). Say you are looking at re-locating - they will do that for no fee - if you say you are loking at going BR, they will not give you a high priority and may not even bother if it looks as though there is no instruction for them!!
If you do opt for BR, you could approach the local councils housing department to see if they can assist. However, from what you have set out, you do not have any children of school age (unless you have a child younger than your 18 year old daughter).Therefore, there is not likely to be any "priority Need" (There are 5 categories).
They may, however, be able to discuss some form of mortgage rescue or maybe fund a deposit for renting on the private sector. Worth asking them
If I can be of any assistance come back to the forum and I will put on my thinking cap!
Regards, Richard
"There are no problems - only solutions..." |
| gettingoutofdebt |
Posted - 29 December 2009 : 10:45:37
Hi,
As you say losing the property looks like a foregone conclusion. You aren't able to keep up with the DMP payments and with positive equity the OR would want to release this. If you want to try to keep the property you could ask a local estate agent for a 'quick sale' estimation as this is the price the OR would use but with £15k-£20k equity you may still be in positive equity with this estimate as well.
Once you decide to declare BR you should stop paying your creditors and use the money to save up for the BR fees. This is perfectly acceptable to the OR and is what most people do in order to get the BR fees together.
You should look for rented accommodation as soon as possible. Most letting agencies will run a credit check and once you are BR you will find it very difficult to get accommodation via an agency unless you have several (6 or so) months deposit. Private landlords are much better and normally don't run credit checks.
I would recommend:
- Stop paying creditors now
- Start looking for rented accommodation now
- If your mortgage repayments are up to date then you will have 3 or more months before the mortgage company start getting nasty
- Set a date 3-4 months down the line (i.e 1st March/April) to declare BR. The date would depend on when you have enough money for the rental deposit/BR fees.
You don't need to tell the rental agency that you are planning to declare BR. Once you declare BR you can move into the rented accommodation the following day and the address of your BR will be your house you are giving up. You can then tell the mortgage company that you are giving up the property for voluntary repossession.
I am not too sure about the charging order against your property but you could also have a chat with RevivaUK (http://www.revivauk.com/) and Jones Giles (http://www.jonesgiles.co.uk/) who both post on this board and are very highly respected. |
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