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Andrew
Junior Member
172 Posts |
 Posted - 13 February 2009 : 22:48:53
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| Hi I am going to file for bankruptcy due to being unable to pay my mortgage and having large credit card debts. I have taken voluntary redundancy from my job, how can i keep hold of my money without it being taken from me? |
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coxy
New Member
United Kingdom
63 Posts |
Posted - 14 February 2009 : 13:05:02
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Hi Andrew
Afraid i cant see how you can, OR Is going to want to know what happened with your last job.
IF the redundancy is a large sum maybe br is not right for you have you taken any advice yet. |
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pix1
Average Member
689 Posts |
Posted - 14 February 2009 : 15:59:13
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There is a mass of information on the Insolvency Service website, especially in the Technical Manual. See this link;
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/
Specifically, I have found this on redundancy payments;
31.5.14 Redundancy payments.
A bankrupt may argue that as he/she no longer has a job, any redundancy payment he/she receives will be his/her income. Case law has established that a redundancy payment represents compensation for loss of a job: Hindle v Percival Boat Limited [1969] 1 WLR 174, and Wilson v National Coal Board [1981] SLT 67. Although the amount of the payment is related to length of service and to the level of past salary, it does not constitute compensation for loss of earnings. A redundancy payment will be made to an employee dismissed by reason of redundancy, even if that employee immediately secures another job, and even if that job is at higher wages.
31.5.15 Protecting and realising a redundancy payment
A redundancy payment whether received before or after the making of the bankruptcy order should not therefore be treated as income and the possible subject of an income payments agreement or income payments order but as an asset and realised accordingly.
If the bankrupt has not received the redundancy payment at the date of the bankruptcy order, the official receiver should remind the bankrupt that he/she has an obligation under the provisions of section 333 to give the trustee notice should he/she acquire any property and that this includes the receipt of any redundancy payment. This reminder should be confirmed in writing. Where possible, the official receiver should obtain details of the payer, if it is a private employer or the Redundancy Payments Directorate if payment is to be made under the Employment Rights Act 1996, and arrange that the redundancy payment be made directly to the trustee.
See
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part5/part2/part_2.htm
So, it appears you would lose any redundancy money in bankruptcy.
Depending on the amount, is there any chance of using it to make settlement offers to your creditors? They might accept as little as a quarter of whats owed in FFS sums.
Also, if you by chance have negative equity in your property any redundancy payment could be used IF it still means you do not have positive equity in the property having paid in an amount. If it did create positive equity this could end up causing the proerty to be sold off by the OR. Using redundancy money to pay into a mortgage may not look like disadvantaging your creditors in the same way that going on a world cruise would.
I wonder what someone else thinks.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 February 2009 : 21:57:56
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Hi
the redundancy money will definately be lost if you declare Br immediately.
However if you use the money wisely and are able to account for it ( This is important) then there is no reason why you are not able to use some or all of this money PRIOR to petitioning for Br.
A lot really depends upon the level of unsecured debt , the liklihood of finding employment soon, and the realistic liklihood of being able to maintain the mortgage over time.
If you decided on Br and were knowingly going to loose the house then you may elect to use some of redundancy to set up a new home - which would require 3 - 6 months rental deposit, moving costs and living costs until you found a job.
You also have the court fees to consider.
There are always options and you musn't rush.
Carefully consider ALL the solutions to debt and how they impact on your own unique set of circumstances. The and only then are you in a position of knowledge and able to make sensible decisions for yourself moving forward.
Do the Research
Understand your options
Get professional advice
Get ducks in a row!
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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Andrew
Junior Member
172 Posts |
Posted - 16 February 2009 : 15:30:53
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Hi all, to cut a long story short I owe roughly 13,000 on 2 credit cards. I have an arrangement in place on one paying £54 per month with all interest frozen. Outstanding balance is about £6500. I owe the same on the other card however I received a letter in october last year saying my debt had been handed over to Mercers debt collection but have heard nothing since and i have not paid anything.
I bought my house in august 2007 for £151,000 and its now worth around £130,000 max or possibly less. I am in arrears around £2500 now . My partner and i have separated and she still lives in the house and pays all utility bills, I live with my parents temporarily and from January have no longer paid the mortgage. The house is in joint names and my ex fully understands the situation and is aware the mortgage is unpaid.
Like i said in my previous post, I took voluntary redundancy on 30th January and walk away with £10,000 which is paid at the end of Feb. I need to know for certain what to do with my money as i cant lose it and end up BR with no job and no money.
Hope this gives you a greater insight into my problems
Andrew |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 February 2009 : 22:56:46
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Hi
with the £10,000 you certainly have several choices regarding the credit cards.
However the main things to be concerned over are future income / job and the mortgage.
If the mortgage is not being paid the house will eventually be reposessed and the mortgage company will pursue you for the shortfall ( AND your ex)
So you could either use the £10k to keep the house going, do a debt management plan with the credit cards and hang on until you get another job.
Alternatively you may consider the liklihood of being successful with the above and investigate Br, in total your debts would be around £35 - £50 depending upon what the house eventually sold for.
PLEASE BEAR IN MIND THAT THE MORTGAGE COMPANY WILL PURSUE YOUR EX IF SHE IS ON THE MORTGAGE - so any solution will need to include her as well.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
Edited by - Reviva UK on 16 February 2009 22:57:15 |
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Hi I am going to file for bankruptcy
