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katherine08
Junior Member
United Kingdom
172 Posts |
 Posted - 31 July 2008 : 11:21:31
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Hi all, really nervous and need advice.
Long story - short....
* made redundant last Sept
* started own company that as not worked out and had last salary just gone into bank account.
* the other Director wants to continue running the business but I am going to resign, other Director OK with this. The business is about £4k debt.
* no money next month to take a salary and unlikely going forward so am unable to pay my personal debt and joint secured loan.
* got married in Feb 08 - most of debt accrued before this
* our lovely baby boy born June 08
* Husband runs his own business that can cover our living expenses and his personal debt but not mine.
* house worth min £250k to £275k max, mortgage £175k and secured loan of £79k
* house rented out as could not afford mortgage so we are renting.
* I have £13k on 2 credit cards and an £8k and £2k loan.
My main questions are;
* can I go BR and it not affect my husbands business
* can we give our tenant notice and then just hand the keys back to the mortgage company
* will they make my husband BR if we give the keys back
* how do they assess my assets as I dont believe I have any? What do they take into account.
* Minimal savings (under £2k bonds) and the car are in my husbands name will we lose these (car is on HP).
* how does me going BR affect my husbands credit rating
* my new son has an account for the money people gave him, will this be taken, and what will happen to his premium bonds
Complicated I know but think I have said everything, very nervous so all advice, knowledge and experiences welcomed.
Thanks - a very worried Mum
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John
New Member
United Kingdom
73 Posts |
Posted - 31 July 2008 : 11:58:20
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Hi katherine08 & welcome to the forum
Phew!!!! here goes........
**You can go BR for your £23K debt and it will not affect your husband's business.
**You can give your tenant the required notice and hand your key's back
**If you hand the keys back there is a potential problem for your husband in that, if the property is sold at auction it is likely to realise 70% to 75% of it's market value - let's call it 72.5% of £262.5K - which is just over £190K. With £254K secured against the property the "shortfall" is £64K which would become an unsecured debt as you no longer own the house. The unsecured debt would be "joint and several" liability which means that if you go bankrupt your husband is liable for all £64K. If he cannot pay the sum then he too will no doubt eventually be declared bankrupt by the lender(s)
**Assuming the house is gone, the car and savings are in your husband's name, if you have nothing else of high value or life insurance or pension fund then you have no assets to speak of.
**Your BR would have no affect on your husband's credit rating unless the address retains a black mark with the credit reference agencies but these are easily removed by disassociation.
** Nothing can happen to your child's savings account or premium bonds unless the party going BR has invested heavily in either one prior to BR.
It looks to me that the key point is the property you own and are renting out.
If that goes then there are potential repercussions for your husband, if not he's "safe" as it were.
Assisting where I can. |
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katherine08
Junior Member
United Kingdom
172 Posts |
Posted - 31 July 2008 : 12:43:19
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Thank you so much for that advice it is great, we are going to see if we can sell our house privately to achieve a higher price, if that fails we will hand the keys back and see what happens.
It feels awful being in this position but having this forum and source of advice is great
Thank you again |
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katherine08
Junior Member
United Kingdom
172 Posts |
Posted - 06 August 2008 : 15:40:44
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Hi more questions...
Although there is no obvious way of me re-establishing my income is there any mileage in writing to my creditors and asking for a six month payment break so my husband and I can try and sort out this mess first? How do the Halifax and Barclaycard respond?
If I do go bankrupt my husband has told me I have approx £1k in premium bonds should I pay this to the most recent creditor (newest credit card), loan that is due to expire first or wait to speak to OR I go BR?
This forum is of great support in this horrible uncertain time - thank you everybody
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rollercoaster
Junior Member
United Kingdom
327 Posts |
Posted - 06 August 2008 : 17:33:28
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| Dont use the bonds to pay a creditor, this will be seen as a preferential payment by the OR at a later date. |
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Wife going bankrupt help needed...
