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grahamdh
Starting Member
6 Posts |
 Posted - 10 October 2008 : 14:29:18
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Hi
I have been considering bankruptcy for some time and am unsure what to do? Let me explain my issues:
Most of my current debt is to the HMRC. This is based on tax owed now and in the future from past investments in tax referral and film schemes. I lost all of my equity on the stock market in 2000 and had a huge capital gains bill to pay at that time because of the previous years growth with no money to pay it, hence the start of all of my problems. I have since struggled to pay all of the tax and this year it has just got too much. I owe the tax man immediately £30K and they are taking me to court over that one and I have a "Disposal Hearing" (what is one of those?) in 2 weeks. I also have the RBS taking me to court to get a charging order on my house for another £30K. There is currently very little equity in my house anyway as I have a £70K secured loan on it (taken out to pay the tax bill)! I also have about £100K of other credit card debt and I will owe the HMRC a further £200K over the next 8 years based on investments I made in the Film tax deferment schemes 8 years ago. So, all in all, my overall debt is in the region of £400K not including the mortgage, which is the only thing not in arrears. So, do I wait and see what happens at the hearings, or do I go bankrupt immediately to get a jump on my creditors? Or something else? By the way, there is probably about £10K equity in the house which is in joint names and I have 3 kids under 11. Will I be forced to sell the house? Will they sell it for me? What happens then? Will they send the bailiffs in to take our possessions? Thanks in advance for your help. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 10 October 2008 : 14:37:19
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Hi Graham and welcome
You really need to speak to our helpline which is free and they can advise you what to do for the best.
The number is 0800 078 9367
I cant really advise you but please do give the helpline a call.
Best of luck
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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pix1
Average Member
689 Posts |
Posted - 10 October 2008 : 18:06:37
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Hello,
It really sounds like BR could be the best option for you, however, you will clearly need to discuss it with your wife as she will be considered financially associated with you in the credit files. Assuming she does not need to go BR herself there might be a possibility of her buying out your share in the property at some point after you go Br yourself but this is an intricate process you need to fully investigate. Please see my recent post to 'repossession before bankruptcy' post by m123. If you and your wife opt to give up the house you could stop paying the mortgage as of the Br date and be able to stay there for probably at least 6 months before needing to find alternative accommodation. Of course with three young children it is crucial to see what alternative accommodation you could get and BR could impact on your ability to rent, though not make it impossible. Naturally, you need to assess what assets you have other than the family home. E.g. a car above the value of £2500 might well have to be sold.
Disposal hearing, by the way, simply means that you must have replied to a count court claim as defendant and it is to be decided whether to give judgment there and then or to refer it to a later hearing.
It is good that your IR debt goes back several years as, if you went BR, the longer ago a debt is, the better it looks on you. The IR do have a policy of making people Br for debts but it is probably better to initiate it yourself as then you have more control over timing.
Any questions please ask the forum and wish you the best. |
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grahamdh
Starting Member
6 Posts |
Posted - 10 October 2008 : 18:51:49
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Many thanks for the feedback. When you say that my wife will be financially considered with me, does this mean that she will lose her credit cards also. Hers are totally clear by the way and paid off every month. Also, will they want to consider her bank account?
We have two cars one valued at £600 in my name and one valued at £7000 and owned by my wife.
Would I be able to come out of bankruptcy and still keep the house and still have the secured loan?
The IR reason for the debt goes back several years but the debt is a deferred debt payable over 15 years. This is the problem of having money to invest and then losing everything so that you can't pay the deferred amounts!
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RHB
Senior Member
1159 Posts |
Posted - 11 October 2008 : 07:44:18
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| I think given the high level of debt that the trustees will want something back so I think that keeping your home when there is equity, albeit small, is slim. However, if your wife or another family mamber could pay your share & purchase the BI & you can keep up to date with the ortgage it's not an impossible scenario. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 11 October 2008 : 09:09:05
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Hi Graham
We were offered by the OR to buy our BI which is about £10-15k then we would have had that part of the BR of off our backs and the house unless we defaulted on the mortgage would be safe.
We chose not to as even though my dad said he would buy it for us i was worried that at 64 he is already in debt with his own things and i did not want another debt added but also if we did default then we would stilllose our home.
If you can keep up with the mortgage then i think if the BI can be bought then go for it, we had our reasons to why we did not but that was our choice.
Good luck it will all come good in the end :-)
Jo x
Your Mother Hen :-)
Please visit my blog for info on how I got here and other information to guide you through from my experience called:
"Mother Hen's New Debt Free Life with Links and added info on Bankruptcy!" available to view at:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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Disposal Hearing and charging order
