Giving the keys back - advice needed

[tonycee]

Gold Lady.

 

I have just re read the entire thread. I am not sure where you get your information from, but tell your friends to relax.

 

It doesnt matter which way it happens.

 

BR/Repo Repo/Br

 

During your Bankruptcy, be it 6/8/12 Months or 10 years,

 

NOBODY but NOBODY can touch you ( Even the tax man ) or chase you for a debt.

 

Bankruptcy is a very personal, very surreal experience, but it is also there to protect the individual, regardless of circumstances.

[JNJL]

Thanks for your advice goldlady - has anyone else had experience of this? You would think it would be in the mortgage companys interest to sell house as quick as possible?

 

Only problem with selling is finding yet more money to get that sellers pack, pay solicitors, estate agents etc..

[JNJL]

Hi Tonycee,

 

are you saying that if we move out into rented, and then go bankrupt the house shortfall will be included in the bankruptcy even thouhg it hasn't been sold or repossessed?

In which case should we give the keys back, sell it ourselves or wait until mortgage company repossess?

 

We could just stop paying everyone and see if someone bankrupts us but what happens if one of our creditors puts charge on house?

 

Last question would it make any difference to future possibility of getting a mortgage again if we managed a sale privately and thereofre only had the bankruptcy not a repossesion as well? (hope that makes sense)

[gizmo111]

Hi Tonycee,

 

are you saying that if we move out into rented, and then go bankrupt the house shortfall will be included in the bankruptcy even thouhg it hasn't been sold or repossessed?

In which case should we give the keys back, sell it ourselves or wait until mortgage company repossess?

 

The choice is yours. The OR will take the property into account and as there is no equity the mortgage co will have no choice but to repossess. The important thing is to stop paying. Use the money to get together the BR fees and up front rental.

We could just stop paying everyone and see if someone bankrupts us but what happens if one of our creditors puts charge on house?

 

Doubtful anyone other than HMRC will bankrupt you. If theres a charge it just wont get paid when the house is sold eventually.

Last question would it make any difference to future possibility of getting a mortgage again if we managed a sale privately and thereofre only had the bankruptcy not a repossesion as well? (hope that makes sense)

 

Doubt it very much. The BR will be the over riding factor for at least 6 years.

 

You need to get a time plan together of how you are going ot approach things.

[Goldlady]

Hi Tony, I was told this by a friend who is an insolvency practitioner and also have read it in several threads on CAG, including Tawnyowl's repossession thread. But I can see where you are coming from too as if the house is part of the assets of the BR then the receiver should have control of it. But if it is a liability due to a shortfall yet to be determined would the OR not just ignore it?

 

 

 

Gold Lady.

 

I have just re read the entire thread. I am not sure where you get your information from, but tell your friends to relax.

 

It doesnt matter which way it happens.

 

BR/Repo Repo/Br

 

During your Bankruptcy, be it 6/8/12 Months or 10 years,

 

NOBODY but NOBODY can touch you ( Even the tax man ) or chase you for a debt.

 

Bankruptcy is a very personal, very surreal experience, but it is also there to protect the individual, regardless of circumstances.

[JNJL]

Thanks Gizmo that makes sense. Think we have found a very nice agent who is going to help us around the credit situation to find us somewhere to rent, apparantly he has had to advise a number of his landlords to relax the rules a little as so many people in the same sitution at the moment? So going to look at a place on Tuesday - fingers crossed!

 

So as soon as we get the keys to our rented place and move stuff in would you advise the next step would be to make ourselves bankrupt straightaway? Like you said just trying to get the timings in my head. Now we have finally made that difficult decision to do this I just want to get on with things and get it sorted ASAP?

[tonycee]

Hi Tony, I was told this by a friend who is an insolvency practitioner and also have read it in several threads on CAG, including Tawnyowl's repossession thread. But I can see where you are coming from too as if the house is part of the assets of the BR then the receiver should have control of it. But if it is a liability due to a shortfall yet to be determined would the OR not just ignore it?

 

Let me explain it the way i see it.

 

1. You are made, or go Bankrupt for whatever reason.

 

2. Your house is no longer your house. It belongs to the official Receiver.

 

3. Your financial affairs are supervised by the OR, whether its 1 or 10 years.

 

4.You are, or have been repossessed.

 

5. There is a shortfall in the sale price.

 

6. Who cares ??? Its no longer your house. It belongs to the Official Receiver. They will have to deal with any shortfall. It wont get paid, it will just have to be written off.

 

The main concept of Bankruptcy is that you are insolvent, and cant technically pay your way. The Official Receiver will supervise you back to reality.

 

A clean start. NO DEBTS.

 

There are many scenarios through BR, but the end product is always the same.

[JNJL]

Thanks for the advice Tonycee, that now all makes sense!

 

Would anyone recommend putting the house on the market and trying to sell it ourselves whilst waiting to get somewhere to rent/move etc? or is not worth the money and hassle?

[JNJL]

Sorry

 

another question, will our bankruptcy last longer before we are discharged due to the house?

[poppadom dog]

One of the problems trying to sell when in arrears is that the lender can block the sale when it comes to exchange of contracts.

[lic2009]

One of the problems trying to sell when in arrears is that the lender can block the sale when it comes to exchange of contracts.

 

 

I read somewhere that this would be overturned by a Judge (can't recall the case law - sorry)

[gizmo111]

Thanks for the advice Tonycee, that now all makes sense!

 

Would anyone recommend putting the house on the market and trying to sell it ourselves whilst waiting to get somewhere to rent/move etc? or is not worth the money and hassle?

 

 

It is really not worth it.

 

Sorry

 

another question, will our bankruptcy last longer before we are discharged due to the house?

 

Not neccasarily - there is no reason for you to have a BRO that I can seee.

[JNJL]

Just been reading some other threads - what is a sub prime lender? Payplan told us our mortgage company (was GMAC took over by Mortgage Agency Services no 5) are a sub prime lender and they are harder to deal with?

[gizmo111]

Just been reading some other threads - what is a sub prime lender? Payplan told us our mortgage company (was GMAC took over by Mortgage Agency Services no 5) are a sub prime lender and they are harder to deal with?

 

 

You won't be dealing with them though the OR will. And them being awkward has no bearing on you getting a BRO.

A sub prime lender is someone who lends to people with an adverse credit history. They take higher risks and charge higher rates.

[tonycee]

Payplan told us our mortgage company (was GMAC took over by Mortgage Agency Services no 5) are a sub prime lender and they are harder to deal with?

 

My Mortgage is with GMAC @ around 9.25%.

They are just about to get their comeuppance for being so greedy.

I have not paid them for 7 months and cant wait for them to repossess.

The hardest part about BR is actually doing it.

 

Just forget about everything else, stop paying everybody, and save up as much as you can.

[JNJL]

We have stopped paying everyone now and fingers crossed think we have found somewhere to rent today who will accept our situation!!! so bankruptcy here we come!

 

I don't know if anyone else out there has received advice form payplan but i think it is slightly irresponsible to advise someone that when they are on a minus of £275.00 per month to make offers to creditors etc - where is the logic in that if the pot is empty and you just simply can't afford to do it????

 

I would recommend anyone speak to the National Debtline, you may not like what they have to say but they are honest and sometimes you just need someone to tell you that you just can't afford to stay in your house and keep paying everyone however tough that may sound!!! well unless you know you are going to win the lottery next week!!

[luckythirteen]

I would like to thank everyone on here for there advice!

I am going through a very similar situation, where i cant pay for anything due to wages being cut.

I have been trying to sel my house for 6 months with not 1 viewing and its already at negative equity!

I have to sell it as i have spent way to much on things breaking and think if i dont move soon, the house will just fall apart!

 

After having read everyones threads, i was given the same advice about handing keys back by the CCCS and thought it was a very drastic thing to do but it seems alot of companys recommend this.

Doent Payplan charge for these services? i was always told never to use them by the CCCS and having experienced them from working as a (dont hate me) a debt collector for a major bank.:-|

 

Can i just clarify something as you guys give great advice!

If you need to go into renting and declare yourselfs bankrupt, the order to do so is:

 

1.Stop paying things to save up deposits and moving fees ect..

2. Find somewhere to rent and get a contract signed.

3. Hand keys back

3. Bankruptcy.

 

The reason i ask as i dont want the OR to turn around and say i did it wrong and have a restriction order against me.

 

[lic2009]

I would like to thank everyone on here for there advice!

I am going through a very similar situation, where i cant pay for anything due to wages being cut.

I have been trying to sel my house for 6 months with not 1 viewing and its already at negative equity!

I have to sell it as i have spent way to much on things breaking and think if i dont move soon, the house will just fall apart!

 

After having read everyones threads, i was given the same advice about handing keys back by the CCCS and thought it was a very drastic thing to do but it seems alot of companys recommend this.

Doent Payplan charge for these services? i was always told never to use them by the CCCS and having experienced them from working as a (dont hate me) a debt collector for a major bank.:-|

 

Can i just clarify something as you guys give great advice!

If you need to go into renting and declare yourselfs bankrupt, the order to do so is:

 

1.Stop paying things to save up deposits and moving fees ect..

2. Find somewhere to rent and get a contract signed.

3. Hand keys back

3. Bankruptcy.

 

The reason i ask as i dont want the OR to turn around and say i did it wrong and have a restriction order against me.

 

 

I'm currently doing exactley the same (just found a flat to rent...) using cccs also.

 

Re: Handing keys back, don't tell the mortgage company just post them back recorded del. with a typed out letter - do NOT sign the letter.

 

I think the restriction order lasts three years (?) if you have

 

Good Luck!

[heidi1974]

hi jnjl, im going though the same thing at the moment, my husband has lost hes job and i work part time round my little boy. we are in a lot of debt, we have also got an interest only mortagage thats £970.00 a month, i had rang g mac and asked if they could change or accept lower payments in december as my husbands hours was cut, they said pay as much as you can, we paid 650.00 in december, 750.00 jan, 650.00 feb. now my husband is unemployed i have not paid a penny to my mortgage because we just cannot afford to pay anything.

the mortgage people have asked for full payment now and i have told them that my husband is out of work but they do not care they just want there money. the thing is we have just lost 20,000 because of the house market, so even if we sold the house we would owe the mortgage money still, so i have been and sin citizens advice took debt and mortgage and they have told us to go bankrupt, i new they was going to say that, but its such a relief knowing what to do. we are going to go bankrupt that way our debt goes with it as well, plus the house (great no more being ripped off with mortgage), at the end of the day i would say go bankrupt that way it wipes your debt off and the house if you have not got any equity in it. then the council have to give you some where to live leased its only 400.00 a month, but if the council have not got any houses then they have told me that they will put you in a private rented house also they pay the deposit for you as well. DONT PAY ANY MORE TO MORTGAGE, but thats up to you if you want to keep your house or make a fresh start. i have started to fill in the bankruptcy forms and it is scarry, but i will be glad when its all over and i can start a new life some where else. the other thing is that if you hand the keys in then the council will not help you as they say you have made your self homeless by handing the keys in. it is 345.00 to go bankrupt also 150.00 court cost but if you are not working then you should not have to pay court costs. all i want to no is that when i do the bankruptcy, can they take my items that is in my name. as the bankruptcy is going in my husbands name.

[tonycee]

. all i want to no is that when i do the bankruptcy, can they take my items that is in my name. as the bankruptcy is going in my husbands name.

 

They will not be interested in anything that is not of good resale value. However, if the mortgage is in joint names, and only your husband goes bankrupt, then you are liable for the balance.

[heidi1974]

oh no i did not think about that one, how can they come after me if i only work part time with 360.00 a month from work, would it be best that i go bankrupt as well then.

[heidi1974]

sorry but i have just posted about this on my old forum as well.

[luckythirteen]

Any joint debt you have will go into your name, if your husbnd goes bankrupt. I am having to go bankrupt as most debt is in my name, and once i do, it will force my husband to go bankrupt aswell after. The thing that annoys me, is that you cant do a joint bankruptcy and have to do it seperatly! I think you should be able to go it jointly especially as most of our debt is joint. Wouldnt it save the courts time and money doing it this way?

 

With regards to the council rehoming you, you dont know where they are going to put you...? You could end up in a really bad area!

 

Im currently looking at private renting, but im concerned as my husband is going to have to put his name down for it, as i wouldnt pass the credit check!

Wouldnt anyone recommend telling the letting agent about your bad credit or just keep it to yourselfs?

 

Even tho, this is a horrible situation to be in, i feel much more relaxed after reading everyone posts and that your not the only one going through this!

 

[heidi1974]

thank you for the message, i have heard that if you have bad credit then you cannot get a private rented house, i have even said about having the private rented house in my mom and dads name but we could not do that because it would interfere with housing benefit so we are stuck. but i would be better off in a council house, i know it could be a bad area but if its bad then i will just turn it down. my auntie has just left her husband and they offered her 3 houses and she turned everyone down as they where 2 bed and she needed a 3 bed, she went private in the end. i have got to go and see the housing advice lady today, as at the moment im on the bottom of the list to get a house, thats only because we have still got a roof over our heads at the moment.

im just really ****ed that i have got to use my little bit of wages now to go bankrupt.

[gizmo111]

You don't have to rush into BR, you can save up for it and do it in a few months when settled. You may be exempt from the court fee.

 

Not all landlords refuse someone who has bad credit and gone BR - I would argue that now you have no other debts and a proper budget to live on you won't miss the rent payments, especially if you are getting some HB.

 

You may be able to get your mum and dad to be guarantor, or you may get assistance wit hteh councils bond scheme where they pay the deposit and

1st months rent. The other thing is to save up as much as you can before you leave the house and offer more than 1 months rent in advance.