I cannot afford to keep up the payments of all my bills anymore so i have noi choice but to stop paying them and declare myself bancrupt. Can i still keep the mortguage going on my house as i am not in arrears and how soon can i declare myself bancrupt after i stop paying my loans and credit cards ect?
As long as your house is in negative equity and you keep up the mortgage, then the OR won't be interested in it. You will need to purchase the beneficial interest (or get someone else to do it for you). That will cost you £1 plus £211 costs.
A lot of courts will expect you to have taken advice before declaring bankruptcy. Have you thought of doing an IVA or a DMP? I would ring an IP before making the final decision. At least then, when you go to court, you can say you have taken advice. Visit www.iva.com and you will find a list of companies. Give one or two a ring.
If your house is in negative equity then you can get someone to buy out beneficial interest in it for £1 plus £211 fees, if their is equity in it, it will usually be sold to give creditors the equity.Most people on this sight seem to stop paying creditors as soon as BR decision is made in order to save the £510 BR fees.Some local courts have a wait of up to 6 weeks for an appointment,others have a walk in system,so prob worth phoning you local court to see how long it will take.I went through BR myself 6 weeks ago and so far it has been nowere near as scarey as I thought it would be.Everyone on this site is brilliant on this site the way they support each other.You can declare yourself BR as soon as you can no longer afford your debts,but you will usually be asked if you have sought advice before doing it.
I cannot afford to keep up the payments
Posted - 26 June 2009 : 12:51:21
