Bancrupcy...Help!!!

[orrygold]

Hi I'm new to all of this and not too sure if I'm posting right, forgive me if I'm not!

 

I'm not quite sure how to start so I'll just jump straight in:-

 

We have lost our home to repossession as we came out of a fixed rate and couldn't afford to keep up the repayments, this was back in May this year. The thing is we have a secured loan (£4000) and 2 other debts against our home (£4000 & £800) and the mortgage company (gmac rfc) are selling at a price which is a lot lower than we owe (£75000). Basically the house is up for sale for £67950 so that means IF the house sells for that price then we'll owe £15850 and we are just at a total loss as we are not in a position to pay it back at all, to make matters worse we are behind on most other payments and just can't see a light at the end of the tunnel.

Our other debts probably don't amount to much, it's more little amounts to what feels like alot of companies! And unfortunately they have all been called in recently,

 

I suppose the questions I want to ask is; if we go bankrupt before the house sells does that mean this debt will still come under the bankruptcy? We also have a council tax debt with rossendales will this also be dissolved? And as most of our debt letters have been lost in our move we've just lost track of everything (debt collectors names, addresses and phone numbers ect) How will these companies know we are bankrupt? Do we just wait for them to contact us?

 

I'm so sorry if this is all mixed up, I'm so confused and just can't think straight at the minute.

 

Any Feedback answers will be of great help, thanks so much in advance.

[TheChancellor]

Hi OG

 

Welcome to CAG.

 

I can't advise, unfortunately, but I will bump the thread for you & follow with interest.

 

Good Luck.

[palomino]

Hi I'm new to all of this and not too sure if I'm posting right, forgive me if I'm not!

 

I'm not quite sure how to start so I'll just jump straight in:-

 

We have lost our home to repossession as we came out of a fixed rate and couldn't afford to keep up the repayments, this was back in May this year. The thing is we have a secured loan (£4000) and 2 other debts against our home (£4000 & £800) and the mortgage company (gmac rfc) are selling at a price which is a lot lower than we owe (£75000). Basically the house is up for sale for £67950 so that means IF the house sells for that price then we'll owe £15850 and we are just at a total loss as we are not in a position to pay it back at all, to make matters worse we are behind on most other payments and just can't see a light at the end of the tunnel.

Our other debts probably don't amount to much, it's more little amounts to what feels like alot of companies! And unfortunately they have all been called in recently,

 

I suppose the questions I want to ask is; if we go bankrupt before the house sells does that mean this debt will still come under the bankruptcy? We also have a council tax debt with rossendales will this also be dissolved? And as most of our debt letters have been lost in our move we've just lost track of everything (debt collectors names, addresses and phone numbers ect) How will these companies know we are bankrupt? Do we just wait for them to contact us?

 

I'm so sorry if this is all mixed up, I'm so confused and just can't think straight at the minute.

 

Any Feedback answers will be of great help, thanks so much in advance.

 

Hi, and welcome to CAG!

 

Your situation is a bit complicated. I would do the following -

1. Write down a list of all your creditors and the amounts owing (approximate if you don't have the paperwork). Phone the creditors for which you don't have accurate or up-to-date figures for the outstanding balances.

2. Talk to your nearest Citizens Advice Bureau.

3. Talk to National Debtline - National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000

4. Check out the government's Insolvency website - The Insolvency Service Website

 

Bankruptcy is a very serious business and you can never have too much advice.

 

As to your immediate problems -

1. Do you and/or your partner have jobs?

2. Do you have anything left over after paying all your living expenses? - include everything such as rent and utility bills.

3. Write to all your creditors advising them of your financial situation and offering a token amount each month as your intent to pay what you can. Depending on your circumstances the amount you offer could be as low as £1. If you have any small bills that you can pay off in full then do so (at least it keeps those ones off your back).

 

What will happen when you advise your creditors of your situation is that they will all start throwing their toys out of the pram. You will get default notices and notices to pay etc. but if you don't have the funds then there isn't much you can do.

In the fulness of time your creditors are likely to involve debt collection agencies. These people can be very nasty indeed. If someone from an agency calls you must not speak to them as they are well-practised in the art of humiliating you and trying to get you to commit to payments you cannot afford. Simply say that they must state everything in writing and then hang up. Don't worry about being rude - this is the way they are so you can be too.

 

If you have the time have look around the Debt Collectio Industry forum here to see how debt collectors work and what can be done about them.

 

If you have any questions come back here and ask.

[orrygold]

Thanks so much, I will on doing this right away.

[nevos]

Hi, if you go bankrupt then, all your debts will go away. You could try to make a family arrangment with your creditors, i.e. offer them what you can afford to pay monthly.

 

It will cost you to file for banruptcy:-

 

• £345 towards the administration of your bankruptcy. This is known as the deposit and must be paid.
  
• £150 court fee that may not have to be paid. This is means tested.
  
• £7 if you swear the statement of affairs in the High Court or before a solicitor.
  

There is a lot of support available here on CAG..good luck.

[blue4ever]

I have found a thread where the poster got a full grant to pay for the Bankruptcy.Advice needed please-bankrupcy

Check out post47

Hope this helps

Cheers B4E

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[surfaceagentx20]

The answer to your question is that the debt arising on the shortfall will be included in a bankruptcy even if the date of the bankruptcy order should pre-date the date of the sale. This is because the cause of action underpinning the shortfall will be treated as a cause of action which accrued the moment you defaulted under the mortgage (and which lead to the possession proceedings) and because most likely, the liability under the mortgage is recorded as a money judgment in the possession order.

 

See Bristol & West Plc v Bartlett & Anor [2002]

 

Any queries, just yell.

 

x20