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singingsister
Starting Member
18 Posts |
 Posted - 26 September 2011 : 10:41:23
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My husband and I are looking into bankruptcy but I have aome questions I would like answered before I can decide in my mind what I want to do.
We are currently renting and in the 2 years we have lived there we are not behind on rent. We can't be thrown out can we? Also, what would happen if, when our tenancy is up in July next year we wish to move? I presume we'd have problems renting through a letting agent like we have done since 2006, but if my parents acted as guarantors would that make things easier for us?
How would going bankrupt affect mine and my husbands jobs? I am an IT buyer, I do not have any budget responsiblity as such but my husband, who is a facilities manager does.
The information I have read says if your car is valued over £2500, you will have to sell it. We bought our car via HP back in 2009. We have a 2005 Peugeot 307 which, according to Parkers, is roughly valued today at £3500. I use the car to get to work and also we need the car to transport our 20 month old daughter around. Would we have to get rid of the car?
Doing some research, it says your name gets published in the local paper to say you are bankrupt. I must admit I've never seen this in any paper so how "local" is local? I really really don't want my friends/extended family to see it and start prying. We will tell who we want to tell.
How can we decide whether to make a single or joint application? Our car is technically in my husbands name, our joint loans are "mainly" in my husbands name (our PPI which is currently paying out as my husband was made redundant is in his name).
I don't think I have any "asset" in my name.
Sorry for all the questions. I don't know where else to turn! Husband and I had a big argument last night aobut it. He seems to think going bankrupt will instantly clear all our debts and it will all go away. I keep trying to tell him it's not that simple and there are long term repercussions but he's not listening! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 26 September 2011 : 11:23:09
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HI Singing sister
lots opf questions and i am a slow typer
1) the OR will write to your landlord, it is at the landlords discretion to renew tenancy agreement most are fine if told in advance
2) can be challenging with renting another property as some estate agents will only go on credit checks
3) parents great as guarantor
4) depends on wording in contract but most jobs safe
5) more than likely that car would go
6) papers generally NO but why not let a few close freinds know, they may be great support for you
7) need to work out who owes what and if both need to go BR
8) Yes we had many high volume discussions prior to going BR, the fear of the unknown
take joint advice from someone practising in the industry
Good Luck Richard,
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 11:32:11
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Thank you Richard. My head is all in a muddle so any help I get is great!
I'm worried about the car. We need a car to get about. Although I'm not the main carer for my disabled father, I often am asked to go food shopping or my husband does DIY or heavy lifting around my parents house. Without a car this would be impossible.
Also, my one hobby is that I perform in musicals. If our car got taken away, I would not be able to carry on doing this, as I would not be able to get to rehearsals or indeed the theatre to perform in the shows.
If we had to get rid of the car, would we be able to buy a cheap run around car in it's place (not that our car is particularly high value!)
The car issue in my mind, would be the decider in whether we go down the BR route! |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 11:37:29
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Hi Guys
Your only problem here is lack of knowledge, coming to forums like this and others will give you the knowledge you need to make an informed decision. Some debt companies may steer you away from bankruptcy to payment plans or an IVA which may or may not be beneficial to you, they may give incorrect information about bankruptcy in order to do that. I would therefore make an appointment with the local CAB and gain free independant advice which you can use along with asking the advice of as many companies as you have the time to call, at least then you can satisfy yourself you have researched what is available to you. There is a solution for anyone in debt you just have to find what is right for you |
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 11:41:17
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Thanks Daniel. I have done research into IVA but we don't own our own home or have any savings or assets and owe in total with everything about 30K.
I would rather go down the route of an IVA but hate to say from what I have researched bankruptcy might be the best route.
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 11:46:05
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| With regard to the car it is arguable it may not be worth more that a reasonable replacement,therefore it could be safe however you may have to be prepared to offer a little cash in order to secure it, it really depends on your examiner and also the office handling the bankruptcy, |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 11:50:33
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| Hi I dont understand when you say your joint loans are mainly in your husbands name, you say in total about 30k in debt do you know what the split is, ie how much joint and how much for each of you. |
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 11:59:07
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The car - especially with the dent in the door we can't afford to get fixed. That's got to devalue it!
We consolidated all our single debts back in 2009 into 1 loan (apart from a small egg loan my husband has). As far as I am aware, our main 25k loan is in both our names, but, as at the time we applied for loan I was newly pregnant, Halifax advised just to put the PPI in my husband's name which we did.
They are currently paying out (as is Egg) as he was made redundant.
The other 5k is made up of my husbands "small" loan and overdrafts etc.
The car again I think is in his name alone. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 12:06:55
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| I personally believe you dont have a problem with the car, if you take it to a local garage who buys cars for cash get a written offer for it or get an online valuation from webuyanycar.com, and give this to the examiner after the bankruptcy you could even attach it to section 13 of the statement of affairs. You may be surprised what it is really worth, as the main loans are joint it will be a double bankruptcy. |
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 12:15:26
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Daniel - thanks for the news about the car! I know that's not definite but it's nice to know we have a chance at keeping it!
I want to check with my husband if the loans are just in his name or joint. I am starting to think they might just be in his name.
What's the score with joint bank accounts? Do we have to declare joint bankruptcy? Our overdrafts probably amount to no more than 3k of our debts.
If we don't have to declare joint then surely down the line that makes life easier if I'm not bankrupt with regards to renting and things? (I know our finances are "tied" as we're married etc.) |
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 12:19:56
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Just to say, with the dent, webuyanycar values the car at £2485. And that's without the scratches I didn't mention!
So JUST under £2500! |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 26 September 2011 : 12:23:10
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Hi singingsister, just wanted to say hi and welcome you to the forum.
If you have joint debts then both of you will need to declare bankruptcy, it's not a joint bankruptcy as such, you both have to petition seperately, but if only one of you does is, the other is liable for the full amount of any joint debts.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 12:24:45
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| Its always best if possible to keep one partner free from bankruptcy if your debts are low and income is low a payment plan through someone like payplan can be appealing, but you will need to get advice on that, once you have identified your seperate liabilities, which is why I pointed you to the CAB. I would also not worry too much about renting, landlords are business people rental agencies are often not, at least you can tell your landlord in your previous life you went through an insolvency procedure and you will be living in his property free of debt, many landlords dont like agencies I have known many clients after bankruptcy place a small wanted advert in a local paper so landlords contact them direct by passing the agencies who have their little boxes to tick, if only one is going bankrupt set up a seperate cashminder account each with the Co-operative bank, |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 12:30:23
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| Hi You now have sound written argument, which may not be contested the vehicle is not worth more than a reasonable replacement |
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singingsister
Starting Member
18 Posts |
Posted - 26 September 2011 : 12:33:18
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Hi everyone,
Thanks for all your advise. I feel a lot more upbeat about the situation now. I will ask my hubby to arrange an appointment with the CAB as I can't easily get time off work and I can't afford to take time off unpaid.
I definately need to look into the situation with our overdrafts. If there's anyway I can stay bankrupt free, I'm sure it will make things easier for us as a family moving forward. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 26 September 2011 : 12:37:38
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| I guess its all down to the Halifax loan, hope it works out for you both |
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Topic |
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A few question prior to possible bankruptcy
