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oh my god
Junior Member
United Kingdom
180 Posts |
 Posted - 09 May 2008 : 18:23:52
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Hi am I able to put credit cards on my bankruptcy petition as they are the bulk of my debt (I know it's a silly question but I heard from a freind they can't be included)
Dan |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 May 2008 : 18:27:34
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Hi Dan,
Yes credit cards can be included Bankruptcy includes all unsecured credit debts.
Excluded from Bankruptcy are:
Student Loans
Secured Loans or Mortgages
CSA or Maintenance debts.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 09 May 2008 : 18:33:28
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Thanks Julian for the rapid response....another question for you. What will happen to my house if i went bankrupt as it's in joint names with my wife?
Dan |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 May 2008 : 18:35:22
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Hi Dan,
That would all depend on the equity.
What is the value of your property and what are the Mortgages and or loans secured against it?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 09 May 2008 : 18:38:08
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Hi I owe £109,000 and I think it may be worth about £120,000. All secured loans against my property are with the Abbey National and are included in my mortgage.
Dan |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 09 May 2008 : 18:57:48
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Well Dan,
If it is Joint names then the trustee in Bankruptcy will be looking to sell your half of the equity known as your beneficial interest.
In your case looking at the figures that would be in and around £5500.
They would offer your beneficial in the first instance to your wife, but she would have to come up with the lump sum to purchase your interest.
You may want to get an up to date valuation done by a surveyor, although this will cost it will give you a better idea of what your property is worth and in the current climate this may be less than you think.
Other things to consider are early payment penalties with your mortgage lender and rolling the costs of sale into your negotiations with the Trustee i.e. estate agents fee's and legal fees that you would incur were you to sell the property, although it is a negotiation and some people who have posted on the forum have not been so lucky as others when negotiating with the trustee, but it is defiantly worth a shot.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 09 May 2008 : 19:04:01
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Thanks Julian,
Would I be better off just letting the house be reposessed as this may happen anyway? As my wife can't afford to buy my share as she has no income and do you know how long the abbey would give us to find alternative accomodation?
Dan |
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melanie_giles
Senior Member
1191 Posts |
Posted - 09 May 2008 : 19:52:34
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Are you behind with the mortgage payments, and no longer in a position to carry on with them? Repossession proceedings can only be taken if you are three or more months behind with your payments, and then they can take up to six months to proceed. During this time you will be permitted to carry on living in your property.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 09 May 2008 : 22:33:00
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Has your wife got debts also?
You might want to get professional advice before looking at things further because if your wife doesn't have any debts but the house is then reposessed then she would have a damaged credit history and a new debt if there is a shortfall.
Please pick up the phone and get some professional help and advice
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 10 May 2008 : 08:25:20
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Thanks for the advice everyone, am i able to sell my home if i declare bankruptcy and use my share of the equity to pay my creditors via the OR?
Dan |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 10 May 2008 : 22:22:04
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Please phone someone as what you are suggesting is a little back to front.
You either need to sell the home and use the equity to discharge your debts in full. If you have insufficient to do this you may be able to look at a one payment IVA - ( PLEASE speak to Melanie about this).
if you are made br first they the control is gone so it is important to get a plane and a strategy to deal with these issues in the right order.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 11 May 2008 : 08:54:56
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I am 6 payments down on my mortgage and we were resigned to the fact that it would be repossesed (my payments are 900 pm). We considered an IVA but have no disposable income, my bank advised that bankruptcy was my best option as our total outgoings just on my credit cards is now around 750 and my total income is around 1400 pm so my wifes credit file will already be damaged. All I want to do is to be able to let my wife sleep at night without fear of the baillifs knocking on the door. My wife isn't considering br but is worried that our home would be taken from us before we have somewhere else to go and if she will be liable for any shortfall should my house sell for less than we owe on it.
Dan |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 May 2008 : 09:13:53
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Hi Dan
you really need to get a plan together in the next few days otherwise you will loose the chance of controlling the events.
when you say you owe 109,000 on your mortgage does this include the mortgage arrears ane early redemption penalties?
if these have not been factored into your equity then you may well be in negative equity already.
In reality you need to decide if without any of the debt ( credit cards & loans etc ) you could realistically continue with the mortgage payments PLUS pay around 125 per month towards the arrears.
As you are with Abbey you will have more time ( This the 6 months arrears) but you need to check what interest rate you are on etc - i.e. is it likely to increase dramatically or are you already on their standard variable rate which is quite high.
You really need at the very least a telephone call with one of the experts to review your choices and urgently look at the house option.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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oh my god
Junior Member
United Kingdom
180 Posts |
Posted - 11 May 2008 : 10:52:49
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Thanks for the advice paul i'll speak to someone tomorrow. Can you suggest anyone?
Dan |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 11 May 2008 : 16:40:33
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Hi Dan
choice is up to you but best place to start would be with any of the experts here on the forum.
I suspect that the CAB will have a long waiting time so you need to speak to someone either tonight or tomorrow.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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Topic |
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can i put my credit cards on my bankruptcy?
