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scared01
Starting Member
United Kingdom
4 Posts |
 Posted - 31 March 2011 : 20:40:27
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| hi there, we are currently in an iva but I have just recently gone back to old job in london and am suffering from depression and have handed in my notice because I just couldn't cope with the job. I am now on anti-depressants and am now not earnig anything. My husband works full time and I worked part time, we have two children aged 2 and 5. We are now looking into bankruptcy because without my earnings we won't be able to payt he iva payment. We are in a house that we pay an interest only mortgage. We have asked the advice of our IP about finding alternative accommodation and she said we should move into rented and then stop paying the mortgage and file for bankruptcy, not stay in the house go bankrupt and then find a rented house as she said it would be a lot harder that way. I have two questions, what happens when we just stop paying the mortgage, do the arrears get included in the bankruptcy? what about if we are in rented accommodation, i have read that the landlord is informed and can throw you out. I can't risk being in that situation because of the kids so we want to do it right. My parents have £5k to put down as a deposit on a rented place for us so i am hoping that will help us secure somewhere. |
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Worried Woman
New Member
United Kingdom
60 Posts |
Posted - 01 April 2011 : 13:39:46
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The reason they are suggesting you move into rented first is because it will be easier to get premises without being listed as BR. Some letting agents ask for 6 months rent up front if they know you are BR. I went BR last July and I live in rented accomodation. I also left my job last year due to suffering from depression. My landlord does not even know about the BR. I believe they only contact the landlord if there is any debt, ie rent arrears owing to them so I wouldn't worry too much.
If you stop paying the mortgage the arrears will be included in the BR as far as I am aware. Many people stop paying their mortgage and other creditors in order to save for the fees for the BR hearing. Hope this helps. Good luck.
Went Br 20th July 2010..countdown for 1 year. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 01 April 2011 : 16:27:12
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HI scared.
too many people are told that they have to move out of their home in bankruptcy this is not always the case
the first thing is how much equity is in the house
secondly if all of your other debts were taken away and your earnings reduced coudl you afford to stay at the house and pay the mortgage AND any charges.
if it was possible would you want to stay in the house ?
without knowing your full circumstances, I would try to look at keeping you in your home.
nice to read that your parents are prepared to help, rather than putting cash down they may be better as guarrantors.
can i suggest making contact with one fo the experts and ask them if it is possible for you to keep your home
Good Luck Richard,
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RHB
Senior Member
1159 Posts |
Posted - 02 April 2011 : 12:42:06
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| It may be that the 5000 could be offered to your creditors as full & final settlement& bankruptcy avoided. |
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confused01
Starting Member
United Kingdom
11 Posts |
Posted - 02 April 2011 : 15:54:16
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Hi this is scared01, I had to register under another username in order to reply to the topic.
Thank you for your replies.
We could afford to live in the house on just my husbands money and pay all of the bills etc if we didn't have the debts. Our problem is that we have a boy and a girl sharing a tiny bedroom and we are paying the same amount on an interest only mortgage as we would to rent a 3 bedroom house. We can't stay in this house for a long time as the children are nearly 6 and 2 and we can't really have them sharing such a small room for much more time.
If we could offer the creditors £5k as a settlement that would be fantastic but we still have another 4.5 years to go in the IVA and our payments are £465 a month. I doubt they would accept such a low figure.
I have been told today that we couldn't use my parents as guarantors because they are in their 70's and are both retired even though they own their own home and don't do bad for money, not sure how much they get from their pensions but enough for them to be comfortable.
we are not sure if we should stay in the house and go bankrupt as I know they should let us stay in the house for a year but then what will be our chances of finding a home afterwards. Would the OR let us stay here until we were discharged so we would have more chance of finding somewhere and then would we be able to use my parents money as 6 months rental deposit? Our equity is around £15,000 although we do have a redemption penalty on the mortgage but only until about June so I doubt £5k would cover the beneficial interest and if we have outgrown the house anyway what would be the point.
My work are going to see if there is any other positions that I could possibly do that I could cope with but in the mean time I have been signed off work with depression. If they can't find me anything else then I will have to leave as I have already said I was resigning. There is no way I could cope with the job and it was making me so ill. I am now on tablets and having counselling which should help hopefully but struggling to find the right path for us as a family.
Any help would be greatly appreciated |
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kentmikey
New Member
61 Posts |
Posted - 03 April 2011 : 19:59:01
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Hi Confused01 sounds like you are going through the mill at the moment and it is such a minefield out there, the most important thing and such a great move is to find this site. Talk to the professionals.
My own position is that I am just waiting on the IVA failure notice being received and I shall then go BR. Like you I am getting stressed with the situation, have a great Boss who I can talk to about my position. I am nervouse about goin BR but also think a feeling of relief will also be felt once I have done the deed.
Hope it goes well and keep in touch.
All the best
Mikey |
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fattypatty
New Member
United Kingdom
69 Posts |
Posted - 04 April 2011 : 15:28:43
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hi confused ,
i really do feel for you lots of us are in the same position as you at the moment we handed the keys back to our mortgage provider last year and found rented accomadation i was making myself ill with worry because of letters through the door and baliffs knocking its not nice
we moved within 2 months of not paying our mortgage but wish now we had stayed another month to release the money for paying for our bankruptcy but at the time we had just had enough and wanted out it didnt feel right staying some where that we wasnt paying for we had no equity in the house we had so we just notified them sent the keys and that was it didnt or havent heard anything from them even though the house has been sold since last september .
i am also on antidepressents and can honestly say i wouldnt have coped without them as i was slowly getting worse .
things do start to get better i promise but it all takes time and money if which i know we havent got i filled for my bankruptcy on the 24th and have my or phone call on the 7th april im not nervous because i have prepared for it but i also have my bloomin husbands paper work to sort out too because he is going br soon too we couldnt afford to do it together .
makes me laugh you go bankrupt for a reason .....you have no money
please keep posting x x x x x chin up x x x x |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 04 April 2011 : 20:05:14
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If you are waiting for an IVA failure notice you should remember a couple of things.
1. You are still protected from your creditors by virtue of the fact that you are in an IVA. - YOU HAVE TIME !!
2. You may need to wait longer than anticipated for a failure certificate. It is not completely unusual to wait for 5 - 10 months. we have 1 person still waiting some 25 months later. This is from one of the leading IVA providers - as seen on TV.
3. Not all courts demand a failure certificate. Often a letter from the IVA company confirming that they are aware that you wish to file for Br will suffice. phone the court clerk and confirm with them.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Questions about process of going BR
