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baxi
New Member
United Kingdom
66 Posts |
 Posted - 03 January 2009 : 20:42:32
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Hello everyone,
I'm new to the forum and in need of alot of help! My wife and i are going to both file for bankruptcy, we see it as our only option. We don't want to stay in our current mortgaged property as it has painful memories etc. Are we owe £94,000 on the property currently, £91,000 after june as that is when our current mortgage deal runs out (higher lending charge), we also took out £29,000 from Picture which is only 1 year old so god knows how much is left on that! The property therefore is in negative equity in the region of 30-£50,000.
I'll number my questions so they are easier to answer, if the answers are already posted then please let me know where, thank you.
1) We won't be paying the mortgage or picture loan this month to save up for bankruptcy fees etc and will stop paying it all together. Should we find somewhere to rent now and save up for the deposit etc or wait until after the bankruptcy hearing? **Please note** as we have been under various strain we will be looking for seperate properts to rent.
2) Do we stop paying the gas/electric/water/home phone etc if we are going to move into a rented property or just tell them we are moving, and does that change after the bankruptcy hearing?
3) Will we have to agree to a payment order, would not paying the bills etc mean we are more likely to have to do this?
4) If we leave the mortgaged property are we able to take wood flooring, spotlights, and shower cubicle etc to store for when we eventually move into a new mortgaged property (a few years!)?
5) Do we need to get a solicitor?
6) What happpens to stuff like mobile phone contracts etc?
7) How do we withdraw money if our bank accounts are frozen?
I've probably forgotten lots of stuff so i will keep adding to the thread. Any help is greatly appreciated as we are both very scared about the time ahead of us. Thank you. |
Edited by - baxi on 03 January 2009 20:56:07 |
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Jez
Starting Member
United Kingdom
49 Posts |
Posted - 03 January 2009 : 21:03:17
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Hi Baxi,
Welcome to the club!
1. Finding somewhere to rent now will be easier than after BR or missing payments for the mortgage as you may have a better credit rating at the moment.
2. If you don't pay the utilities, you may find it harder to get them set up in your rented property.
3. A payment order will depend solely on your ability to pay one, i.e. if you have sufficient disposable income. Whether you have paid you bills has no relevance.
4. This is a difficult one. The mortgage company are only interested in the bricks and mortar, and the property is likely to be sold under value to a property developer who may rip things out anyway. The shortfall will be included in your br (if you put it on the form) so you won't be liable.
(still 4.) HOWEVER, you cannot leave the property in a dangerous state or a state that is likely to cause damage, i.e. turning off the water and just disconnecting your shower could result in the next owner inadvertently flooding the house by switching the water back on without capping off the shower plumbing.
(still 4.) It is your responsibility to ensure that you leave no bare wiring when you remove the spotlights and leave no uncapped plumbing when you remove the shower.
5. No need.
6. I'll leave this for someone else. I switched all of mine to payg.
7. Set up a co-op cashminder account before going BR.
I bet you noe have even MORE questions :)
Cheers
Jez |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 03 January 2009 : 21:31:38
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quote:
Originally posted by Jez
Hi Baxi,
Welcome to the club!
1. Finding somewhere to rent now will be easier than after BR or missing payments for the mortgage as you may have a better credit rating at the moment.
2. If you don't pay the utilities, you may find it harder to get them set up in your rented property.
3. A payment order will depend solely on your ability to pay one, i.e. if you have sufficient disposable income. Whether you have paid you bills has no relevance.
4. This is a difficult one. The mortgage company are only interested in the bricks and mortar, and the property is likely to be sold under value to a property developer who may rip things out anyway. The shortfall will be included in your br (if you put it on the form) so you won't be liable.
(still 4.) HOWEVER, you cannot leave the property in a dangerous state or a state that is likely to cause damage, i.e. turning off the water and just disconnecting your shower could result in the next owner inadvertently flooding the house by switching the water back on without capping off the shower plumbing.
(still 4.) It is your responsibility to ensure that you leave no bare wiring when you remove the spotlights and leave no uncapped plumbing when you remove the shower.
5. No need.
6. I'll leave this for someone else. I switched all of mine to payg.
7. Set up a co-op cashminder account before going BR.
I bet you noe have even MORE questions :)
Cheers
Jez
Hi Jez, Thanks for the quick reply and yes your right, i do have more questions!
We will both now look for somewhere to rent, although we will have to wait until we have missed at least 2 months mortage/picture loan before we have enough of a deposit, do you think our credit rating should still be ok?
If taking spotlights i'd make sure they were safetly left (no live wires) and it is only the shower cubicle so i would be leaving the tray and the shower. Do you think that would be ok?
I thought we would have to tell the receiver of all bank accounts, would he not then freeze the co-op one aswell?
Thanks. |
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Jez
Starting Member
United Kingdom
49 Posts |
Posted - 03 January 2009 : 22:02:47
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Hi Baxi,
I'm honestly not sure what state your credit rating will be after a few missed payments, but you can minimise the impact by looking for rented accomodation through private advertisers rather than through agencies, as most private landlords wouldn't do any credit checks.
I would say that your plan for your shower cubicle would be fine, however, the cubicle is pointless on its own, you need the tray and the shower unit as well, and storing it would be a hassle. Personally, I would think that the value of the shower cubicle is not worth the effort.
I'm not sure on the configuration of your spotlights, but depending on how you have wired them, it might be more hassle than it is worth to safely disconnect those. It is your choice of course, as long as you leave it safe.
You will have to tel the OR about all accounts, including the Cashminder account, but the OR will leave the Cashminder account alone, and Co-op are BR friendly.
Jez
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baxi
New Member
United Kingdom
66 Posts |
Posted - 04 January 2009 : 14:35:31
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What do i do regarding council tax, do i keep paying until i find a new property and thern ring them up to cancel?
Regarding the utility bills, is it best to pay them also until i find a new property to rent and then ring them up and tell them i'm moving?
How quick is the process of going bankrupt once you apply to the court?
Any help is greatly appreciated, thanks. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 04 January 2009 : 15:03:15
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Hi Baxi
While your still in your property you must continue to pay all your utilities until such time that you have found another home and then can change supplier or cancel them.
Dont stop paying the essentials as it will only increase the debts and to be honest you have to pay the gas, electric, water etc etc to be able to live everyday.
Jo
x
22 Weeks down
30 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring! |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 04 January 2009 : 17:05:00
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Hi Jo,
Thank you very much for the advice, i assume i should continue paying the council tax also? I have a credit card which i tempted to use to get cash for a deposit on a flat to rent (desperate to get away from where i'm currently living) I also took out a recent loan for £1800 which i won't be able to make the payment on (they don't start until april), does this mean i'll receive a BRO?
Also how long does the process take once you have filled in the forms and apply to be made bankrupt?
I was advised to open the co-op account, should i do that asap and switch all my direct debits and get my wages paid in to it, or wait until i am made bankrupt?
Thanks again everyone. |
Edited by - baxi on 04 January 2009 17:46:11 |
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Jez
Starting Member
United Kingdom
49 Posts |
Posted - 04 January 2009 : 18:17:50
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Hi Baxi,
Using your credit card now, knowing that you cannot pay it will be viewed very negatively by the OR. An alternitive method for raising money is to stop paying your creditors and put that money aside to use as the deposit.
There is nothing that you can do about the loan now. Did you know you wouldn't be able to pay it when you took it out? If not, then no problem.
If you get a BRU/BRO it isn't the end of the world. It isn't worth eorrying about things that you can't control.
Get the co-op account before BR as it will be in place and give you a bit more piece of mind leading up to your BR.
How long the process takes, will depend on the court where you will be made BR.
Jez |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 04 January 2009 : 18:26:15
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Hello again Jez,
Should i transfer my wages to the co-op account and my direct debits, or wait until after the hearing?
Thanks. |
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Jez
Starting Member
United Kingdom
49 Posts |
Posted - 04 January 2009 : 19:34:24
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Hi Baxi,
I would have your wages pid into the new account as soon as you have set it up, and then obviously set up the DD's.
Jez |
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baxi
New Member
United Kingdom
66 Posts |
Posted - 04 January 2009 : 20:53:07
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I'm very worried my debt is not large enough to go bankrupt, especially looking at some of the amounts posted on here.
Both my wife and i would go bankrupt, are income and expenditure are;
My income; £1055
My Wife; £820-900
Expenditure (joint)(monthly)
Mortgage - £405 (owe 91-94k)
Homeowner loan - £260 (owe 29-30k)
Personal loan - £150 (owe - 7.5-8k)
Credit card(not sure if in joint names) - min £120 (balance £5700)
Home insurance - £28
Water - £28
Council tax - 12 x £80
Gas/Electric - £90
Tv licence - £12
Sky - £37
Home phone - £30
Broadband - £17
Life Insurance - £16
My personal expenditure (monthly)
Gym (can't cancel) - £12
Car insurance - £30
Meals at work - £40
Personal loan - £58 - (owe 2k)
Overdraft charges/interest - £20(owe 2 x 1.8k overdrafts)
Petrol - £80
Mobile phone - £55
My wife's expenditure (monthly)
Overdraft charges/interest - £5 (owe £500)
Car insurance - £48
Gym - £12 (can't cancel)
Mobile Phone - £45
Then on top of this we have food, toiletries, hair cuts, going out, car tax, car maintainence etc. I'd like to know what is allowed for these and if anyone can add them to my figures and let me know if they think we will both be able to go bankrupt.
Thank you. |
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Newbie, alot of Help needed!!!
