Bankruptcy advice please

[miss_squeezy77]

Hi all

I hope someone out there can give me a little advice, I have read through several posts and advisory leaflets but I can't find an answer to my main question...

 

A bit of background first - I have around £40K in unsecured debts (including a mortgage and secured loan which are both now unsecured as the property was repossessed and sold) and am making very minimal payments to most of my creditors.

 

I am on a 12 month contract at work and will be unemployed from the end of August, (I'm a teacher) I have also been off work with severe depression since the start of February which won't help when I have to start looking for a new job.

 

Looking to the future, I can't bear the thought of having this level of debt hanging over me, only chipping away with tiny amounts - it'll take me more than my lifetime to pay it off! I feel like I need to take some action so that I can start to feel positive again. I am considering bankruptcy but I want to be sure that my partner won't be liable for anything - all of the debts were accrued before we met and they are all in my name.

 

I am living with my partner who owns the house and I pay a monthly rent to her to cover my share of bills etc... She has a substantial sum in savings and some equity in the house - but I don't want her money, as far as I'm concerned the debt is mine and mine alone and I wouldn't dream of asking her to bail me out.

 

We had an appointment with CAB at the end of last year but the woman we saw was very unhelpful and quite insulting - but that's another story. To be frank, it's put me off using their services again.

 

So, if you've read this far (and thank you if you have!) my question is - if I go for bankruptcy, will the OR take any of my partner's savings etc...?

 

I know that I could just continue to make token payments to creditors but I'm only 33 and I would like to be able to buy a new house with my partner at some point in the future.

 

Has anyone out there had a similar situation? Any advice much appreciated!

[debtinfo]

How long have you lived with your partner, how much rent do you pay compared to the mortgage and bills

[***trumpeter***]

I recommend that you consult a professional registered insolvency practitioner. The first appointment is usually free. I think it will be all that you need. I offered to pay my insolvency practitioner her normal fee for a consultation, because it was clear after the first few minutes of our meeting that I would be able to conduct the whole bankruptcy procedure myself; she refused any payment and I've been recommending the company ever since: purnells dot co dot uk

 

I consulted. All the debt was in my sole name. The house and mortgage were - and had always been - in my partner's sole name. My partner was not held liable by the OR for any of my debt.

 

Don't let it get you down. Anyone can get in a mess. Without the crippling payments and with a roof over your head you'll only need a bit of supply work to stay on your feet Good luck.

[miss_squeezy77]

Thank you both for your replies and taking the time to read my post

 

@debtinfo: We've lived together for 10 months and pay half of everything, totalling £500 pm. Prior to me moving in, my partner lived here alone for 4 years.

 

@trumpeter: thank you for your recommendation, I'll look them up. TBH the monthly payments aren't crippling - yet - as I say they are only small, mainly because I don't know what my job situation will be in 6 months time. However, I don't want to be having to live in fear of the postman and dealing with DCAs for the rest of my life, not to mention the worry of being able to pay come September.

 

Thanks again both for your responses

[debtinfo]

basically, in bankruptcy they wont consider that you are paying a "rent" if you are living together, you are living as a couple and contribute equally to the property. The OR will consider that by doing so you over time gain an interest in his property, at the moment that interest is very small, probably not worth them bothering about (as the onus is on them to prove the interest), but if alot more time passes before bankruptcy and you continue to contribute then you may get to a point where they take an interest in the property

 

As far as income is concerned, they wont take any of his income but they will expect him to contribute fairly to all the household outgoings

[raydetinu]

Normally I would recommend CAB they are very good when you see the right person, very experienced and usually a specialist in the field you want.

I would still try gain, and make sure you ask for some one who knows the field. If they cant help totall they will certainly put you in touch with people that can.

But be careful insolvency practionors charge by the shed load.

Bankruptcy is a viable option to clear debts, but you do need to discuss options with somebody and be clear on the pitfalls and what you have to do to discharge it.