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redkat
Starting Member
United Kingdom
4 Posts |
 Posted - 11 January 2009 : 22:24:30
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I am due to declare myself bankrupt on the 27th of Jan. I have about 37k worth of debt and earn roughly 1500 per month. I have been in a debt management plan for 2.5yrs and have finally decided that bankruptcy is the best option after speaking to some experts.
three things are concerning me
A, I jointly own a house with my mum in which i live, the house is worth the same that we bought it for and my mum put in all the deposit and fees etc. The difference between mortgage and market value is 16kish. My mum will take the option to buy my share of the interest as it is hers anyway although not in a legally worded document. I have recently taken on a DSS tennent who pays a nominal sum but it helps. Also my mum pays the mortgage and i pay her rent will this be classed as rent or not?
B, I took out a vanquis credit card in oct 08 to try and gain some kind of credit rating back, the available credit is 250 and am not putting this in to the petition, is that wise? it has been used mainly for petrol or food payments. How will that be viewed by the OR?
C, Also i owned a car which i could not afford to maintain due to its age, my aunt gave me another car in exchange straight swap, and she has since sold my other one but it was never transferred to her name it went from mine to the other owners will this be an issues for the OR?
I am thinking i am doing the right thing but occasionally i panic
looking for advice all will be gratefully received
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 12 January 2009 : 10:14:13
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Hi Redkat and welcome to the forum.
In order to answer your qestions, I need a bit more information:
A: Are you on the deeds as well as the mortgage? Is there documentary evidence that your mum paid the deposit and the fees? How much are the monthly mortgage payments and how much rent do you pay?
B: This card HAS to be listed. Knowingly omitting it from your SOA is technically perjury (the amount owing is irrelevant). The OR will advertise your BR in the London Gazette and the Stubbs Gazette (as well as the local paper) which are monitored by the financial institutions, so Vanquis WILL find out and inform the OR you have an account with them..
C: Were the monetary values of the cars the same?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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redkat
Starting Member
United Kingdom
4 Posts |
Posted - 12 January 2009 : 10:31:45
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Hi Julian
Thanks for the quick response,
A, With regards to the house i am on the deeds as we bought it as joint tennents. The mortgage is 440 per month and I pay 440. All the payments went via the solicitor directly from my mum so there is evidence to support this.
B, I have listed it as an owned card but not put the balance in the debt claimed. Not sure if this is worth it or what to do.
C, No the car I swapped was worth and sold for 700 and the car i got in return is worth about 1500. I need my car for work.
Thanks for your help
Redkat |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 12 January 2009 : 12:22:21
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Hi Redkat,
A: The issue here is that you are paying the full mortgage. Given the fact your mum paid the fees and the deposit, it is likely the OR will view you as having a 50% stake in the property. Therefore, it could be £8k to buy your beneficial interest. This can be mitigated by including early redemption penalties (if any) on the mortgage as well as getting a surveyors valuation based on a 90 day sale. When you factor in fees etc, it is more than likely the equity will disappear and so your mum can buy your BI for £1 + costs (circa £211).
B: This needs to be listed without fail.
C: The car should be fine as you need it for work and it's under the £2500 threshold.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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redkat
Starting Member
United Kingdom
4 Posts |
Posted - 12 January 2009 : 12:59:34
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Hi Julian
Thanks for the advice its set my mind at rest. So just to clarify about the card, i need to include this as a debt in the list of creditors i am claiming bankruptcy from?
One other thing which i have remembered, in my job i am paid on a shift by shift basis not salaried. I do pay PAYE and NI through the pay roll and get holiday pay. My recent payslips show a high than average income which is about to tail off as the shifts available are not so abundant.Will this situation be taken into account by the OR when they determine whether i have to pay anything back? I dont want to be i a posistion where i am asked to pay and then a few months down the line my income reduces and i cant pay. My p60 will show an income of about 21000 for this current tax year. my outgoings are about 1250 and average income 1500 but this is sometimes more sometimes less. Also i am paid 4 weekly not monthly so my figures look better than they actually are.
Thanks Julian for your help.
Redkat |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 13 January 2009 : 16:18:13
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Hi Redkat,
To confirm, this card will need to be listed in your SOA.
The OR will take an average of your last 3 months pay when looking at your income for the purposes of an IPO/IPA. However, as and when your circumstances change, this amount can be amended accordingly. I would suggest bringing to the attention of the OR the imminent change in your circumstances during the interview.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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My story advice needed ;-)
