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Peter.81
Starting Member
1 Posts |
 Posted - 15 February 2011 : 13:28:44
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| I am helping my daughter submit her bankruptcy application. Just a question about completion of the petition form. She is divorced but retains a 50% interest in the former home with her ex, which is now let at a monthly inc of £737. currently this money goes toward the joint monthly int only mtge of £705. Further monthly costs relating to build insce, boiler insce, mop up the surplus. Joint mtge debt is £214K, valuation is £210K - £215K. Should this joint rental income be included in her income section 6 at 50% with 50% outgoings in section 7 or just noted in section 8 with suitable notes. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 15 February 2011 : 17:58:01
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Hi Peter
When your daughter petitions for Bankruptcy the OR / trustee will want her share of the rental income.
They will believe the mortgage debt is just one of many debts and the income should be shared amongst all creditors. (after their fees have been deducted)
This will put extreme pressure on relationship with EX as he will be liable for all joint debts.
BR is all about timings and planning the event, if your daughter is still talking with EX, it may be worth the three of you and one of the experts sitting down over a coffee and making certain all of the ducks are in a row and in the right order.
Richard |
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Peter.83
Starting Member
7 Posts |
Posted - 16 February 2011 : 09:02:07
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Thank you Richard. I take it then that I will need to include the rental income 50% or all of it? in her income statement and the mortgage interest debt 50% or all of it? in parts 6 & 7 of the form.
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 16 February 2011 : 18:41:38
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if they own 50% enter 50% but clarify in aditional notes at rear of booklet
Richard |
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debtinfo
forum expert
2826 Posts |
Posted - 16 February 2011 : 19:25:51
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| no the rent money is not included in section 6 as it will not be received by your daughter, it is classed as an asset not an income and so should just be noted seperatly in section 13 as a note |
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Peter.83
Starting Member
7 Posts |
Posted - 16 February 2011 : 19:42:07
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Seems I am getting conflicting advice here?
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debtinfo
forum expert
2826 Posts |
Posted - 16 February 2011 : 19:51:11
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| straight forward, the rental income does not go in section 6, After the bankruptcy the OR will send her a whole seperate questionaire to fill in details about the property, all they need to know on the forms is that she owns it and that it is tenanted, they will guide her through after that |
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Peter.83
Starting Member
7 Posts |
Posted - 17 February 2011 : 09:29:45
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Thank you
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I am helping my daughter submit her bankruptcy app
