thinking of bankruptcy couple of Q's

[gurucurt]

hi everyone

 

i am in the process of fighting debt and repossesion i have moved into a rented property that i like, but i am leaning ever mor towards thinhking bankruptcy is the best option my questions are

 

1. how will bankruptcy affect my tenancy this passage is in my agreement but i really dont understand it??

 

" if the tenant being an individual shall become bankrupt or being a

company shall enter into liquidation wheter compulsary or voluntary

( save fir the purpose of reconstruction or amalgemation as a solvent

company) or if the tenant shall enter into any compostion with their

creditor or suffer any distress on their goods in the property the

landlord may re-enter on the property and immediatley thereupon the tenancy shall absolutely dtermine without prejudice to any other remedy of the landlord."

 

2. how do i recieve my wages?

 

cheers for any help curt

[palomino]

1. The landlord may throw you out. If you have a sufficient regular income to continue paying the rent then I would have a word with him to pre-warn him.

If he then throws you out then he would have done that anyway. But it makes sense to keep him in the picture - at least you're trying to keep on his good side! Depends what sort of person he is of course.

 

2. Once you're declared bankrupt you can open a basic account at many of the banks and building societies. Some people on CAG recommend the Co-op because it provides things like direct debits and standing orders (not sure of the exact details) which most basic accounts don't.

The Official Receiver may allow you to continue using an existing account of course.

Have your wages paid into the new account. Don't open the account before you go BR as that will be frozen - which defeats the purpose of opening it.

 

 

As to bankruptcy itself this is a very serious step to consider - have you taken advice on this?

[gurucurt]

The tenancy is through a lettings agency,my partner has no debts at all is not linked with me financially but is on maternity leave could we transfer the rent direct debit to her and would the OR let me transfer the rent from my wages to her account monthly??? is this legal would the landlord have to know??

 

it is between an iva and bankruptcy the house is about to be repossesed but i may be able to sell before it goes through the mortgage loan will be covered but i will have a secured loan shortfall of appox 9-10k would this then be able to be included in an iva? as i have approx 21k unsecured debt which i struggle with constantly juggling payin one then missing others till they moan etc.

 

thank you very much for your interest and advise

Edited October 16, 2008 by gurucurt
thanks

[palomino]

You will need to ask the lettings agency if they will permit the lease to be transferred. They may regard it as a new lease and go through the income and creditworthiness checks all over again just for your partner.

[incidentally this isn't just for fun, it is normally a requirement of their insurance.]

 

As to the loans currently secured on your house, once the house is repossessed or sold then any shortfall is very obviously no longer secured. At this point they would fall under the remit of the Official Receiver if you were declared bankrupt.

If you went the IVA route they should also be included but you should take advice on this.

 

I would strongly suggest you talk to the Official Receiver for your area. Select the link from this page - about us menu - and either ring them up or send an email. I've found them very helpful although emails can take a few days as they are very busy (and likely to get busier!).