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jay-10
Junior Member
United Kingdom
175 Posts |
 Posted - 11 April 2008 : 13:03:32
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Hi,
I am currently on the brink of looking at bankruptcy.
Due to a failed business (after 3 or so years of running ok) I am left with debts I cannot pay.
I currently do not have work as the business wound up recently and I have been signed off by the doctors due to stress. (Its amazing how we can beat ourselves up when we are down! I am thankfully getting better at this bit)
My wife works and we own a house. There is at most 5k equity in our property. (especially considering the current market)
We have the option to move abroad and live with family for free and effectively start again. (My wife is from abroad and we both have Visas)
We have around £35,000 worth of debt and because it is only split between 2 creditors and because I have been signed off and are currently not working we cannot look at the IVA route. (Not to mention the fact we would probably find it impossible to pay back at the moment.)
My questions are basically:
As we have a property with a small amt of equity, or worry is a different one to most. We have the option of a fresh start without the overhead of a mortgage payment each month, which is a very important thing for us at the moment, the problem here is obviously we need to sell our house, and have been trying to do so before then tackling the bankruptcy issue afterwards. We worry first, will this look bad? Us selling just before going BR? (Obviously if we made ANY profit from the sale, which is unlikely, we would pay it all to debts.) and second, what happens if we cannot sell? As there is a small amt of equity in the property, does this mean they would not sell it and therefore we are effectively stuck in the property until we can either sell (Could be years if house prices go down and we get into negative equity.) or are discharged from BR? (And what happens if we cannot pay the mortgage in the meantime?
Lastly, We have both been scared about both the payment orders and actually being accepted for BR, At present if we moved, I wouldnt have a job (as is the case now) and therefore no fixed income, and my wife would also not have a job at least initially.. Would they tell us we could not move abroad or decline BR? And how would we pay a payment order if we had little to no money when we initially move?
(The fact we can stay with and have the support of family and also have a FREE roof over our heads for a while is a huge thing for us and something which we really need at this point.)
Sorry for the long post and lots of questions, We had never thought we would be in this situation and therefore really dont know the answers.
Thanks,
J |
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jay-10
Junior Member
United Kingdom
175 Posts |
Posted - 11 April 2008 : 13:44:04
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| im sorry the message is so long winded, can anyone help clarify the above? |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 11 April 2008 : 16:03:45
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| Hi there - you have put your post in March's not April's! Not sure if one of the experts will pick it up as quickly there. Good luck! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 April 2008 : 17:02:45
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Hi there and welcome to the forum
I suspect that in the current market conditions you may wellhave no equity at all and you must also remember the estate agent costs & legal fees.
I believe that you need to decide where you want to live and what you want to do and work backwards from there. So if you want to be abroad you have to work out how to pay for the court costs for Br, relocation expenses etc.
Sounds to me that you really need to talk to a professional and work out a timeline and an action plan.
You would be able to see things much more clearly then and understand all your options.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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jay-10
Junior Member
United Kingdom
175 Posts |
Posted - 11 April 2008 : 18:08:56
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thanks for the help and reply,
Our only relocation costs would be for ourselves and our dog, we have thankfully been told that our family abroad will pay for this cost so therefore our costs remaining to work out would be saving to pay for the BR (something I think we can do.)
We ideally want to move as soon as we can and actually get this done at this end, rather than sitting around worrying and waiting as we currently are.
My main questions are, what happens with the house in terms of BR? ie, what if we cannot pay our mortgage any longer, and also need to go BR, what happens with the house etc? (its a joint mortgage.)
Thanks
(Maybe I will submit this again in the correct month :)) |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 April 2008 : 20:56:06
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I will update the response on the other April post
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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