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jeremy
Starting Member
United Kingdom
29 Posts |
 Posted - 25 September 2008 : 07:22:01
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Hello
I am in a terrible state i have been stupid here's a bit of info about me.
I am on state benefits and have been for quite some time i owe around £30000.
My debts are made up of two personal loans and credit card debts most of my debts are gambling related, (i know everyone will have no sympathy but i have had some turmoil in my life over the last three years and got hooked).
I technically own a quarter share of my mothers house when my father died my siblings thought it would be a good idea to transfer ownership equally amongst ourselves just in case my mother ever had to go into care in the future (what a stupid idea that was).
I have to say that i lied to gain credit because i was desperate (oh how easy it was to get credit they made no checks) so i have no chance of getting an IVA.
Thats about it really what are my options??
I am scared that my mother will loose her house and because i lied to get the credit i will go to jail.
I would do something silly but i look after my mother who is severly disabled (67).
jeremy |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 25 September 2008 : 10:24:49
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Hi Jeremy, first of all, please don't do anything stupid - money really isn't worth it.
No-one on this forum will judge you for the way you got into debt, so don't worry about that. If you went BR you would most likely get a Bankruptcy Restriction Undertaking or Order (BRU or BRO) because of the gambling. It would last for up to 15 years, depending on the severity of your case, and it just means that although you are discharged from BR you are subject to the same restrictions for the duration - can't do certain job, can't get credit over £500 without notifying the lender etc.
Is there any equity in your mother's house? If the OR considered that you had beneficial interest in the house, it would only be for a quarter of the equity, not the whole lot.
Lastly (and not related to BR) - do you have any help looking after your mum? If not is it something you would consider to give you some respite? My mum was my dad's sole carer for years and I know how it wears you down.
Good luck, and please keep posting to let us know how you are getting on x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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jeremy
Starting Member
United Kingdom
29 Posts |
Posted - 25 September 2008 : 11:32:05
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well I have aranged a meeting with CAB as a starting point first appointment 11th Oct.
There will be equity in the house as there is no mortgage the house is split into four shares myself my brother and sister and my mother.
the deeds are worded so no sole person may sell their share without the consent of the others and it is a trust of something??
I havent told anybody the extent of my problems yet least of all my mother it will devastate her.
What happens if the OR takes control of my share??
Can we be forced to leave or made to sell the whole house??
After the bankruptcy order is over would i be able to buy the share of the house back??
jeremy |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 25 September 2008 : 11:38:06
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I don't have property in my name, so I can't answer your questions, and I don't want to give you misleading information. I've noticed that Suzanne is posting today, so hopefully she will reply to advise you.
Regarding telling people, the way I handled telling my mum was I decided what to do and made sure I had my facts straight and a plan of action. That way I could tell her what I was going to do, rather than what I might be doing.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 25 September 2008 : 18:24:20
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Hi Jeremy and welcome to the forum.
Property is a grey area in BR at the best of times, but your situation is unusually complicated. Without knowing the full details, it is difficult to give any really useful advice. Suffice it to say, the OR/Trustee would look to realise your interest for the benefit of the creditors (and if your interest exceeds £10k, they would appoint a private sector trustee whose fees seem to start at £25k). I would suggest calling the helpline and one of my colleagues should be able to assist you further.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 26 September 2008 : 04:11:35
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Hi jeremy
I would agree with Julian, you need to speak to someone in more detail and the free helpline would point you in the right direction.
Bankruptcy may not be your only solution but I must warn you that the likelihood is that your Mum and siblings will need to know your position once your planned route out of debt has been decided.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 September 2008 : 15:43:08
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Hi Mark,
The Trustee has two options. Firstly, they can realise the asset now and take their money, or they can fix a charge over the property which they can then relaise at a later date. As I mentioned before, in my experience, trustee fees usually start at around £25k.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 27 September 2008 : 16:49:10
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Hi Mark,
I know it doesn't seem to make much sense .... welcome to the wonderful world of private sector trustees.
If you are in any doubt, please speak to one of my colleagues on the helpline who should be able to advise you further.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 28 September 2008 : 09:38:35
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Hi
Q1. If there is approx £26K of equity in the property now, for the OR to maximise future equity he may just wait approx 2yrs 10mths before considering selling your BI. This is of course a gamble on his part on how the property market will change during that time.
Q2. If the OR did decide to offer your BI now rather than gamble, because he has the prospect of the market improving significantly within the 3 year time frame, he is likely to want the full equity share.
But you're right, he can't sell your BI for £13K now AND try to realise future equity should the market improve.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 28 September 2008 : 09:49:58
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Hi
I should also have advised you that if this is actually your position there are steps the trustee could take to try and evidence the fact that your matrimionial interest in the property is, in fact, greater than 50% irrespective of what it says on the mortgage or deeds. This would depend on exactly where, and from whom, the deposit funds came from and also which joint owner contributed most to the household (mortgage payments, utility payments and any improvements) since the property was first purchased.
There are also implications on who's share amounts to what percentage if there has been a remortgage since first buying the property. That is, if equity has been released since the purchase, how much was released and what was it used for?
This is why in a situation where only one party in a marriage / relationship is declaring BR, and a property with equity is involved, it is vital that you engage the services of a bankruptcy specialist as the correct preparation of your case can save many thousands. Someone outside of the insolvency industry could not be expected to know these rules even exist, or know how to defend them.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 28 September 2008 09:52:11 |
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John
New Member
United Kingdom
73 Posts |
Posted - 28 September 2008 : 09:51:39
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Hi
the OR won't hold onto the case for that long, if the decision is to hold out for improvement in the housing market it will be passed out to a private trustee or the RTLU.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 28 September 2008 : 10:37:13
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Hi
it may well be the case then that your interest in the property could be argued as less than your wife's but unless this is by a significant amount then professional help would not seem beneficial in this instance.
I understand what you mean regarding the finding of fees to engage a professional in the first place.
I would certainly not advocate paying for one without first knowing what they can acheive.
A reputable bankruptcy specialist would go through your case for free. Explain what can be done and in most cases advise you where the fee could be obtained. It is then for the client to decide if it is to their benefit.
Even in these dark days of obtaining credit someone with the level of equity you mentioned in your example is often likely to be able to raise funds even if their unsecured situation is shot to pieces.
But I repeat, nobody should engage a professional unless it is first pointed out by how much they would benefit. Indeed any company worth their salt would refuse to act on a client's behalf in this way unless there is a positive benefit.
And there are a few out there.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 September 2008 : 12:22:15
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Hi Mark,
Best of luck!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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help
