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troubled008
Junior Member
121 Posts |
 Posted - 12 September 2008 : 07:48:31
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Hi,
Our house is worth £100,000.
The mortgage + 2nd charge loan total £115600
Both are joint agreements.
I personally owe a total of £19500 of unsecured debt, on cards and loans.
My wife owes £2000 on card.
We also have a joint bank account which is £3000 overdrawn.
We are £600 short per month to cover our repayments from our monthly income. The CCCS advised bankruptcy.
However, my circumstances have changed as I have been offered a property to rent by my parents.
My original plan was to move into the rental property, stop paying the mortgage and secured loan - allowing the house to be repossessed. The shortfall would then become an unsecured debt which, I thought, could be bundled together with the other debt into an IVA arrangement. However, I have learnt that joint debts cannot be included - Does this mean us both indivually declaring bankruptcy still the best option to deal with this situation? or would it be possible for my wife to go bankrupt, passing debt liability to me - then using an IVA?
Thank you in advance for your help.
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 12 September 2008 : 10:01:44
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Hi yes for the joint debts to be included you both would have to declare BR, otherwise the other party (your wife) will be liable for the shortfall and outstanding amounts.
I hope that i have helped a bit.
Have you looked at IVA's or DMPs
Only a thought, you could also give our other experts a ring on the above number, they will call you back and its free. They may be able to offer better advice and a different solution.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
For links to help with Bankruptcy, useful web pages and also a run down of my new debt free life, both before and after Bankruptcy, then please visit my blog:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 12 September 2008 : 12:19:24
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Hi Troubled008,
Under joint and several liability, if one party goes BR, then the other party is liable for 100% of the debt. in your case, it waould appear that both of you going BR would be an appropriate solution. I would ensure you list all your secured lending on the unsecured section of the SOA as well to ensure that any shortfall following reposession can be included and written off in your BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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troubled008
Junior Member
121 Posts |
Posted - 12 September 2008 : 18:19:51
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Thank you for the quick response and I appreciate the advice.
We have been offered a property to rent and have been advised by an IVA specialist that if we are planning to go bankrupt that we should cease all repayments to creditors, including secured loans and mortgage. Then once 2 payments are missed and default notices received, we should both file for bankruptcy including a entry for the secured debt in the unsecured section of the bankruptcy application to the value of £1 for each.
Is this correct advice, and could we move into the rental property before the house is repossessed then apply for bankruptcy?
Many thanks again.
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BankruptC
Senior Member
1030 Posts |
Posted - 12 September 2008 : 19:07:37
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Hi troubled,
We did pretty much what you've been advised to do, although we went BR as soon as we had the fees to do so (which coincidentally was after 2 months!) and we hadn't received any default noticed by then.
We did enter the mortgage and secured loans in both the secured and unsecured sections, but we put the full amount owing each time. Not sure if that's right, but the clerk didn't tell us it wasn't!
Hope that helps a little bit. We went BR on Weds.
Take care and all the best!
CG. x |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 15 September 2008 : 05:20:59
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Hi Troubled,
If you intend to lose your property and move into a rental, please ensure all your secured borrowing is also listed in the unsecured section of your SOA. This was, any shortfall from the sale of your property can be included and written off in your BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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would it be possible for my wife to go bankrupt ?
