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markyg
Starting Member
1 Posts |
 Posted - 02 February 2010 : 10:58:58
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Hi
As my bio says, I don't think I can avoid BR now. I have been under HMRC investigation for 3 years and it has cost a fortune to defend. I now have a settlement figure agreed but with my other unsecured debt it is just not a number I can afford. I have been researching BR but there are lots of holes in the information that I can find.
I have lots of questions but here are the ones that are bothering me the most. Any help will be much appreciated.
1. From some of the posts that I have seen on here there appears to be a limit to how much of one's DI the OR can take. From what I have seen the maximum is 70% of £500, irregardless of the amount of DI one has above the £500. This seems unlikely (to me at least) so can anybody explain this fully to me? I understand that if there is DI above £100 per month then it will result in a 3 year IPA.
2. I have a big mortgage and a secured loan. The house is in negative equity at the moment. The mortgage payment is £2340 per month and the secured loan is £795 per month. Will these payments be allowed of will they be deemed "excessive"? My wife is able and willing to take on the payments herself (buying the ben int if offered) if required.
3. Part of my income comes in the form of a loan each month. This loan does have to be repaid but is usually set against a devalueing currency. There is currently £130,000 owing on this loan. Could this be included in the bankruptcy and will my income therefore only be considered to be my salary (which is £28,500 per annum)?
4. Is it worth trying to offer £1 per month to creditors and then offer partial full and final settlements with the "unless you accept I will have to go BR" proviso? I would be able to settle some debts each month if so but have currently cancelled all DD to credit cards (mortgage and secured loan continue to be paid)?
That's it for now, thanks in advance for your help
M |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 02 February 2010 : 11:47:49
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Hi
there is a lot going on here and you would need to investigate the loan of £130 k and how they would feel about having it written off but continue to pay a future loan / income.
The mortgage is quite high but if your wife is not petitioning for Br then there is nothing to stop her continuing to pay the majority of the mortgage and buy your BI in due course.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 02 February 2010 : 12:08:48
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I can only really help with points 1 and 4 and would recommend you speak to Paul who posted above regarding your complete situation.
1. Yes, the maximum amount the OR can take is 70% of your DI. Lets say your net (after tax) income is £5000. You spend £1500 in rent, utility bills, travel to/from work, food, etc., which leaves you with £3500 as your DI. You would need to pay 70% of your DI so this would mean you would pay £2450 and the other £1050 would be yours to do with as you please.
70% is the most the OR can take regardless of whether your DI is £500 or £50000 each month.
4. Offering your creditors a £1 token payment is only really useful if you are not planning to declare BR for a while and even then its' use is questionable.
You will find that some creditors may not accept the £1 payment and want their full amount. Those that do accept the payment start to chase for the full amount within a month or two and will only be happy when you make the full monthly repayment.
The only thing that the creditors can really threaten you with is BR and as seen as you are planning that anyway there is not much they can do. |
Edited by - gettingoutofdebt on 02 February 2010 12:09:11 |
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mab
New Member
56 Posts |
Posted - 02 February 2010 : 15:57:04
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Hi
I would definately recommend speaking to one of the experts on this forum, I used Paul from Reviva UK and found his advice and assistance of great help during my bankruptcy. |
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Hi As my bio says, I don't think I can avoid BR
