Can i declare bankrupcym House problems _ long sorry

[Lou*]

Hi All,

Any advise would be apprieicated after another sleepless night - i need to take action and fast.

 

A bit of back ground.I own my own house (mortgaged) - there would be a shortfall of 20-25k if sold / repossesed.

 

I currently work full time and have a small child ( at school)

 

Due to my house and area deteriorating very quickly I am desperate to move, for my own sanity and for my child.

 

the area ( literaly my street) is drug riddled, and simply a horrible place to live.

 

I ( when back full time) will earn approx £1200 per month and my outgoings are £1300 per month,

 

My partner has left due to the state of the area - it really is horrible

 

I have the chance to move in with my partner as he refuses to move back in with us and i dont blaim him

 

the only option I can see is to allow a repossession and then declare bankrupcy for the shortfall and other small debts .

Is this a possible plan?

 

I am worried that "IF" i did move in with my partner my personal money would be more,

if this is so would they make me take an IVA?

 

I would prefer not to as our relationship is not stable and I can not rely on us being together for the 3 years this payment would be made for?

 

When i leave the house I am planning on renting on my own at first anyway as he has other commitments for 2012.

 

I am still going to be "skint" but the point of not being scared when i walk to school or have to ask people not to drug deal on my door step is a much nicer prospect.

 

However i appriciate maybe a judge wouldn't see it that way and say you have been coping why didn't you just stay there?!

 

The house has damp, needs new windows and a new roof, i can't let my son live there for another winter and end up poorly again

 

..I'm sorry for this being a bit personal but i need advise,

 

I will try and also seek help with the CAB but sorting my "payments" out will not end my ongoing state of living in a house

 

i Hate with crimes on my doorstep.

 

Again any advise is very much appreiciated

 

Kind regards

[abc123def]

It's difficult without knowing more information to offer advice, I would contact one of these organisations

 

Consumer Credit Counselling Service - Website: CCCS Telephone: 0800 138 1111

National Debtline - Website: National Debtline Telephone: 0808 808 4000

Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)

[sequenci]

Hello there, given what you've said bankruptcy may sound like a likely option. Any shortfall on the mortgage can also be included. As you don't have anything in the way of surplus income I'm not sure an IVA would be the way to go. As acb123def has already mentioned you could do no worse than speak to one of the above organisations, as they should be able to provide you with some really good advice and assistance.

 

Best wishes,

 

Seq.

[caledfwlch]

If you moved back in with your partner and went bankrupt, what would happen is, in terms of the household bills you would be expected to be splitting them fairly.

 

For example, the Insolvency Practitioner would smell a rat if you claimed to be paying all the rent, council tax and utility bills, they would expect you to only be paying 50% of them, with your partner paying the rest, unless, I guess, your partner is unemployed.

 

If your Partner is on a decent income and you think this could impact, maybe you should stay living apart whilst you go bankrupt?

 

They cannot force you to go on an IVA, if you apply for bankruptcy, you will almost certainly be made bankrupt - and the Judge will not have a go at you just because you were "just coping" before. Put yourself and your son first, and screw everyone else, is how you should be thinking right now.

[Lou*]

Sorry i have only just managed to get back on.. and thankyou for your advise.. I have gone voluntary reposession route the mortgage company have agreed and i am moving out this weekend. I'm getting a house (rent) in my name and partner wont be moving in for a bit anyway ( if he does at all !!!!! ) so i shall see what happens, I'm just worried with our relationship being so uncertain he'll move in pay the bills 50% everything fine i'm paying what i owe etc then BANG on my own again... ! ah well i suppose pointless worrying about what may or may not happen.. anyway again thankyou

[Bandit127]

As sequenci posted - please seek advice from a debt professional when the time comes.

 

I had different reasons to be repossessed (2008 ish) but I looked long and hard at bankruptcy. Certainly back then, the judge at a bankruptcy hearing needed to know that you had such advice and would (probably) not make judgment if you hadn't. I got some very good advice from CAB.

 

The repossession process took forever (I will have to look up exactly how long but it was in the order of 18 months). But, like you in your new house, it was something I had the time to deal with.

 

I decided to try to pay my shortfall in the end and avoid bankruptcy but it will take me the rest of my working life to pay (10+ years).

 

I believe you can vary an IPA if your circumstances change so don't worry about being "locked in".

 

Be aware that IVA is Individual Voluntary Arrangement and an alternative to bankruptcy. It lasts for 5 years and is arranged by a practitioner that gets paid for the service. There are reams of them on Google (for example).

 

An IPA/IPO is and Income Payment Agreement/Order and is part of the bankruptcy process. It is set up if you have surplus income available. It lasts for a maximum of 3 years.

 

There is a lot more to it than that but please know there is a difference. (A Google search will need to know which one you mean).