some quesitons about bankcruptcy

[loopyjuice]

hi there

 

I am in a mess financially and won't be able to pay my creditors around £40,000 (probably more in the end with charges and interest).

 

I own my house outright worth at least £150,000.

 

If someone makes me bankcrupt and they force me to sell the house

 

would i have to attend court or can i send someone to represent me like my brother or parnter, i cant possibly go as i have agoraphobia/panic attacks

 

1. would they try to get a good price for the house or just auction it

 

2. when would i get my share of whats left

 

3. do they send a cheque for the amount left

 

4. how would i cash it with no bank accounts

 

5. could i i keep my car worth around 5 grand considering the house has enough equity to cover the debt and alot more

 

 

 

Im just scared of losing everything, can someone advise on what happens.

[cybermoth]

Hi Loopyjuice, i am no expert, not by a long shot. If I was in your shoes and you own your house, with no mortgage, I would if I could afford the repayments take a mortgage out to cover all the loans/debt. If that is not an option, then I would also consider an IVA.

Have you sought free advice from CAB or the Consumer Credit Counselling Service link: http://www.cccs.co.uk/ ???

Hope that helps!

[loopyjuice]

Hi Loopyjuice, i am no expert, not by a long shot. If I was in your shoes and you own your house, with no mortgage, I would if I could afford the repayments take a mortgage out to cover all the loans/debt. If that is not an option, then I would also consider an IVA.

 

Have you sought free advice from CAB or the Consumer Credit Counselling Service link: http://www.cccs.co.uk/ ???

 

Hope that helps!

 

 

Thanks cybermoth, i am in no position to take out a mortgage and don't think taking out secured loan on unsecured debt would be a good idea. My only income for now and the forseeable future is £80 a week from renting a room to a lodger. Even CCCS won't touch me as i'm not employed. The only route i can see the creditors going down is bankcruptcy or charging orders (of which i think would be the best option until they go for an order of sale), don't know what to do but would like to know what happens in bankcruptcy as in my first post.

[Dodgy Geezer]

Bankruptcy must definitely be your LAST option.

In your position in would cost you a fortune.

 

If you are that convinced you are going to lose the house, then sell it yourself.

 

I would speak to an Insolvency Practitioner. If you choose to go BR, then you will have to get legal advice anyway. Better sooner rather than later.

 

Tell them of your problem. If they think they can get money out of an IVA they will come to you.

 

In answer to your questions.

 

1. They will be in no rush to sell as you will be incurring costs all the time. So they will get the best price.

 

2. Probably many months after completion. Disbursements have to be paid, and paperwork completed.

 

3. Yes.

 

4. Not sure. But this is the least of your worries.

 

5. Is the car on finance. Would it be listed as a creditor. ?

 

I would ASAP list all your creditors and write off for agreements to see if they are all enforceable debts.

 

Bankruptcy for some is a godsend. For me, its a bloody inconvenience. For you, it would be a shame just to let it happen.

 

Good Luck. Keep us posted.

[cybermoth]

Ok...Its a tough one. For me it is about being in control. If I were in your shoes I would sell. That is just what I would do.

What would you like to happen? What do you fear may happen?

I hope someone with more experience and advice will come along and post some helpful advice!

[Dodgy Geezer]

I hope someone with more experience and advice will come along and post some helpful advice!

 

Thanks for the vote of confidence. :-|

[cybermoth]

Quote "its a bloody inconvenience"

 

LOL, you know what you are talking about, That is why I give you a vote confidence:D

[loopyjuice]

Thanks guys i appreciate your help, i think the only option is to sell the house before it gets to the point of bankcruptcy and in the mean time send off for the agreements. The car is paid for and if the house covers the debts will they let me keep it?

 

My only other question that hasn't been answered in the original post is, do i have to attend court if i'm being made bankcrupt or can i send someone beause i really couldn't cope with it in my current state.

[phat256]

hi looppyjuivce before selling out your property get some advise from National debtline you may have to hold on a bit on the phone but belive me they are very helpfull ( much more than CCS who wouldnt touch me with a barge pole too !)