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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
 Posted - 16 November 2012 : 10:20:36
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Hi everyone. Me and the hubby are currently in an IVA. We have been struggling with it from day one. We have recently decided that it will probably be a better option for us to go bankrupt. We have spoken with our IP and they have agreed that we are struggling and gave us some details of a website to have a look through until we have made our decision.
Question 1.
We currently live in a small 2 bed terraced. We have 2 children (boy and girl) who are having to share a room and this is no longer acceptable, so we need to move. A member of my family would like to rent our house, the rent would only cover the mortgage. There is absolutely no equity in the house. If we were to rent the house to them - would the bankruptcy people take it off us, even though they wouldn't get any money from it??
Question 2.
Would we still be able to have our mobile phones?
Question 3.
If we rent somewhere else and become bankrupt but can still afford the rent (we have a guarantor) - could the rental company make us leave?
Any answers would be most helpful..... |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 November 2012 : 11:30:35
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Hi and welcome to the forum.
1. If the property that you own is not your main residence then it's at risk, as the rental money will go straight to the official receiver and you won't have an money to pay the mortgage, meaning that it will be repossessed eventually.
2. Yes
3. Whether you can afford the rent is down to your own budget, but I advise you get into rented first before bankruptcy is on your credit file, it just makes it easier if using rental agencies.
Have you thought about selling the house? and then moving?
Your IP will be able to answer any questions you have regarding bankruptcy, but please post any questions on here or speak to an expert.
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 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 16 November 2012 : 11:44:23
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Hi and welcome.
Not sure about the house - I know the OR will keep an interest for two years and three months but one of the experts will help with that.
You can keep your mobiles as far as I am aware as long as the costs are not too great.
You should be fine with a rental property. |
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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
Posted - 16 November 2012 : 11:51:56
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Thanks so much for your help.
Would it make any difference if we sold the house or left it to be repossessed?? Is the outcome still the same or is it better to try and pay the mortgage and arrears back rather than have it repossessed?? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 November 2012 : 11:57:23
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You can have the house repossessed also, any shortfall would be written off in your bankruptcy.
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 |
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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
Posted - 16 November 2012 : 12:03:31
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| So it wouldn't make any difference anyway? It wouldn't look any better - yeh know for credit rating or future mortgages etc?? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 November 2012 : 12:07:34
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I don't know how the credit reference agencies display repossessions, maybe another forum member may know.
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 |
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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
Posted - 16 November 2012 : 12:13:22
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Thanks Viki. I think it would probably be best to try and sell it anyway.
Also, we have a very basic bank account with the Yorkshire Bank. Would we be able to keep this account? There is no overdraft facility on it or anything.
What happens if you cant afford the bankruptcy fees? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 November 2012 : 12:24:30
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You would need to open a Co-operative Bank Cashminder account before you declare bankruptcy and have everything transferred over.
You need the court fees before you can declare bankruptcy, if you are on certain benefits or low income then you may get £175 off bringing it down to £525, otherwise, I'm afraid it's the full fee of £700. Once your IVA has stopped, if you have any disposable income, then you need to put it to one side and save up the fee.
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 |
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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
Posted - 16 November 2012 : 12:32:01
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| What is the low income threshold? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 16 November 2012 : 12:33:04
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The Co-op do come recommended but I would have thought that the Yorkshire one would be ok as well as long as they are not a creditor.
The fees are £700 each. |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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moneyisthedevil
Starting Member
United Kingdom
10 Posts |
Posted - 16 November 2012 : 13:00:40
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| Thank you! xxx |
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 16 November 2012 : 16:22:41
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| Will the co-op allow that? They dont do that anymore for BR people do they? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 16 November 2012 : 16:39:59
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They have stopped opening accounts for people whilst they are bankrupt. As long as you open it before hand, it's fine.
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 |
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pcoventry
Junior Member
United Kingdom
235 Posts |
Posted - 18 November 2012 : 00:57:19
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Okay. My local branch said otherwise on Friday. They said if it came to light someone opened an account knowing they were going BR they would close it.
It was probably hot air though. |
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Any answers please?.....
