Hubby's potential Insolvency / bankruptcy

reduk054 · 26th April 2007, 22:47

Hi all, I wanted to post a thread as a time line / story about my hubbys potential insolvency.

We are married and own our own home. We do not have much equity in the house.

The very basic out line is : Hubby is due in court at the end of May 07, as a big bank want to place a charge on our property against a guarantee which he made to them against loans/overdraft on a business account. He has lots of other credit card debts outstanding. (I have a separate thread regarding the charge on the property issue).

We are now contemplating him chosing insolvency.

We are not taking this decision lightly, this is a big scary trip into the unknown.

Tomorrow we go to see an Insolvency Practioner.

Any advice and especially support welcome!

Will keep you posted
Red

make them aktiv runners · 27th April 2007, 03:22

It does look like the official receiver can put a charge on the house just like the bank. I would check out if there is any difference in the interest that may be applied after the event (in your other thread you mentioned that the court could allow the bank to charge interest at a set amount).

Good luck at your meeting. Hope it helps you decide the best route.

reduk054 · 27th April 2007, 08:27

Thank you Aktiv, from what I had read regarding bankruptcy I was not aware that the official receiver could put a charge on the house. I will clarify that point today!
Thank you
Red

sequenci · 27th April 2007, 08:39

The OR has 3 years to dispose of the house, so there may be no equity currently but that might change. However, you can take advantage of a scheme which will allow you to buy his beneficial interest in any equity for the pricely sum of £1 (+ admin costs, i think this is £211). This would safeguard the property. Have a look here:

What Will Happen to my Home

reduk054 · 27th April 2007, 09:17

Sequenci, there is a little equity, ie hubbys Beneficial Interst would be around £5k as it stands at present, so I would have to pay more than £1 plus costs, ie £5k plus costs?
Red

sequenci · 27th April 2007, 09:26

Quote:

Originally Posted by reduk054

Sequenci, there is a little equity, ie hubbys Beneficial Interst would be around £5k as it stands at present, so I would have to pay more than £1 plus costs, ie £5k plus costs?
Red

that's right. you would have to "buy" the beneficial interest equity for the going rate. which is a bit of a pain.

reduk054 · 27th April 2007, 14:38

Sequenci - that's right. you would have to "buy" the beneficial interest equity for the going rate. which is a bit of a pain.

Presumably this is all done on current market value with an independant valuation?
Any way I am off in 5 mins to see IP so probably will have more news then

Gingerheid · 27th April 2007, 19:32

I am certain that the IP will have set you up with the best advice; they come expensive but they are the experts.

(When you say IP you do mean an IP, and not a salesman from an IVA company?)

reduk054 · 27th April 2007, 23:41

Hi Gingerheid, thank you for your mail.
It was an insolvency practioner, and today's consultation was free, will update properly tomorrow. He gave a balanced view, and will be worth the fees, as total debts are around £100k!!
Certainly gave me a few ideas to follow up, but time is of the essence, as the court hearing for the charge on the property is currently scheduled for end of the month (May).
Will post properly tomorrow
Red

reduk054 · 30th April 2007, 21:09

Well, we have had our first meeting with an IP, and I have to say it was incredibly informative, and for our situation we have decided after a lengthy discussion that insolvency and not an IVA is the best course of action. This occured on Friday 27th April 07

Hubby went to a second meeting today Monday 30th April 07, where he was given the paperwork from the IP for filing his BR petition.

Tomorrow we will take the forms back to the IP for checking over, and then hubby will file his petition with the local relevant court, one day this week.

So here starts a time line for our action. I wanted to post this in case any one else was heading down the same path as us, (I am personally not going to be insolvent), or if anyone has also had first hand experience with insolvency.

Thanks for your support

Red

Gingerheid · 30th April 2007, 22:12

Glad the meeting went well, and more importantly that you're taking it ok.

I'm sure it'll be for the best and the beginning of something better.

reduk054 · 2nd May 2007, 11:08

Gingerheid, thank you for your kind words and support. I have spent the last two days filling out forms, and Hubby has just left to take his BR petition to the court. Its really happening!
Hopefully as you say, for the best and a second chance so to speak!
thank you
Red

powelll · 2nd May 2007, 11:18

Good luck from me also. Remember the bankruptcy order will only stay on your hubby's cred ref file for 6 years so it's not totally the end of his life ( unless hes 80

). You do need to be aware that if you have a financial association ( e.g any joint credit applications ) his info will show up if you are credit checked.

reduk054 · 2nd May 2007, 11:31

Powell, you make me

.
Hubby was advised by the IP that he still has 25 years of potential income, oh how the truth can hurt!!!
Yes thank you for the note about the joint credit applications, think I have covered that one

Thank you for your support, Hubby gone to the court today to file the petition.
Will keep you all posted!
Red

reduk054 · 2nd May 2007, 20:25

Petition filed today 02/05/07. Not sure what happens next though. Hubby seemed to be under the impression that the court hearing is going to be on the same day as his Lloyds bank charges and the same date that the charge on the property hearing was going to be!
Will post again when I have more info!

Gingerheid · 2nd May 2007, 21:56

Which hearing is first, and have you also guaranteed the Lloyds debt?

If you hope to keep the house these could be quite significant.

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