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Anthony.ms
Starting Member
7 Posts |
 Posted - 04 March 2011 : 14:26:36
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Hi, new to the forum and looking for advice following a friends recomendation.
Situation is as follows:
I have seperated from my wife with no chance of getting back together. We have a house in joint names worth approx £180k. The mortgage is £169k outstanding and we also have a secured loan of £52k on top of the mortgage putting secured debt at approax £220k, leaving us £40k short. I also have unsecured debts of approx 40k with 7 companies. My ex does not wish to go bankrupt, but I see that I have no option as I will need to move out of the property and cannot afford to service the debt whilst supporting myself and my 3 kids (from a previous marriage) that I have to pay the CSA for.
I earn around £2600 pm, and by the time I have paid the CSA, Rent and utilities, with living expenses I dont think I will have more than around £150 pm as disposable income. Is bankruptcy my best option ?
Also, in terms of the house we jointly "own" my ex has suggested that she would take the property on in a single name as well as the secured loan and maintain the payments, she too earns around £2600 pm, so could just about afford to keep the house in a sole basis. is me transferring the house to her legal and allowable if I am going to declare myself bankrupt.
Quite complex I know so any advice appreciated. |
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RHB
Senior Member
1159 Posts |
Posted - 04 March 2011 : 16:00:54
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If our ex takes on the secured loan as well then as the two together = negative equity then there would be no problem.
If that happened could you then avoid bankruptcy & come to some arrangements for the unsecured loans in our name? |
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Anthony.ms
Starting Member
7 Posts |
Posted - 04 March 2011 : 18:06:46
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I'm not sure I could, as I said I would have less than £150 pm in disposable income, thats not going to touch the side of £40k loan. it would take over 20 years to pay back. I'd be willing to try it but i'm unsure that my creditors would accept such a lowly payment against such a large debt - if you can tell me otherwise, more than happy to give it a go !
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RHB
Senior Member
1159 Posts |
Posted - 04 March 2011 : 18:12:21
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I would look into other options first tbh. Also, as our children grow older then you won't have the CSA to pay.
A debt management plan would give you some breathing space & allow you to sort out your divorce & finances |
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Anthony.ms
Starting Member
7 Posts |
Posted - 04 March 2011 : 18:28:54
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appreciate that I wont have to pay CSA forever but as my eldest is 9 and youngest 5, it's a long time before tha commitment goes.
I was told that if would take over 5 years to pay back, you would be best going bankrupt - is this not the case ?
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 04 March 2011 : 20:22:25
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Hi anthony
the whole BR process can be quite complex but their are many people who can help direct you
couple of hints
any joints debts if one of the partners petitions for BR the other will be responsible for whole.
I dont think that with just £150 left over you would qualify for IVA.
A debt management plan may be appropiate but how you going to clear the debt
as a BR you would not be able to be company director.
your ex would be allowed to purchase the interest in teh house.
This really needs to be combined properly, then presented in the correct clear manner and i would recomend speaking to one of the experts.
Richard
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Anthony.ms
Starting Member
7 Posts |
Posted - 05 March 2011 : 13:11:50
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My ex has informed me that she is unwilling to take the secured debts on, if this is the case, does it preclude an IVA ? I don;t see how i can maintain payment to the secured creidtor as well as trying to sort the unsecured credit. If I declare myself bankrupt, what would happen the the secured debt ? I presume the company would approach my ex for the money. Does my bankruptcy then clear me from any obligations on the secured debt ? I guess it means that my ex would either have to pay the secured creditors or lose the house ? would tghe secured creditors be able to come after me after the bankruptcy order ?
sorry for all the questions, it just seems getting clear advice is very difficult !
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RHB
Senior Member
1159 Posts |
Posted - 05 March 2011 : 13:32:17
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| If your ex can't fund the payments you are probably both looking at the bankruptcy route & your ex will lose the house ultimately. |
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RHB
Senior Member
1159 Posts |
Posted - 05 March 2011 : 13:37:02
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| Secured debt will be covered by your BR as it becomes unsecured when your house goes. |
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debtinfo
forum expert
2826 Posts |
Posted - 05 March 2011 : 13:56:59
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| The secured debt would still be your responsibility until the house is sold or repossessed |
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Anthony.ms
Starting Member
7 Posts |
Posted - 06 March 2011 : 19:34:20
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Would that happen in suitable timescales, I presume that is the house was re-possed to be classed within the bankruptcy it would have to be within the 12 month bankruptcy period ?
The mrtgage company have said that they would only look at reposeesion after missing 6 months payments, if that is the case then I guess it weould be difficult to get the reposeesion and the 2nd loan taken in to account ?
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debtinfo
forum expert
2826 Posts |
Posted - 06 March 2011 : 20:42:55
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| As long as you dont sign anything then no matter how long it takes for them to deal with it the shortfall would be included in the bankruptcy |
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Anthony.ms
Starting Member
7 Posts |
Posted - 06 March 2011 : 22:57:53
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Thanks for the advice, I know there are bumpy times ahead, I'm still considering an IVA to pay back my creditors, but I am worried that they would not aceept and IVAwith me stil named on secured loans, it would be difficuilt for them to accept knowing that I still have secured debts that come along and impact the IVA in the fuure if the home is repossed. Do you think I could still do an IVa with the secured debt in my name ?
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 March 2011 : 08:45:34
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If you are considering an IVA I would suggest talking to a couple of Insolvency Practitioners. Have a look on www.iva.com for details and reviews of companies. They will be able to discuss all of your options with you so you have all the facts before making a decision.
Good luck.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Hi, new to the forum and looking for advice
