On behalf of my parents.

[NinaS]

Just wondering,

 

I've read a lot of threads about bankruptcy,

 

where people haven't lost their homes?

 

How is that possible?

 

My parents incurred lots of debts when my dads business folded about 5/6 years ago,

the are slowly paying it off,

but drowning in it.

 

Could they file for bankruptcy and still keep their home?

 

That's the only reason they haven't so far is because they think they will.

[dx100uk]

yes they could

 

but there are other ways too.

 

reclaiming is a VERY good way of resolving debt

so

is CHECKING

 

everyone you pay

 

is LEGALLY entitled to the money

 

this is VERY important where DCA's are involved.

 

it might be an idea too:

 

1. get their CRA file

 

2. CCA everyone they are currently paying

 

3. list their debts and whom they pay here

 

dx

[Wintry]

Hi Nina

 

Yes as dx says it is possible but this would depend on circumstances - eg - neg equity, third party equity buy out, affordable ongoing mortgage payments.

 

You may have already looked through these links but I have put them up anyway, a lot to read perhaps but might help as a guide

 

BIS

http://www.bis.gov.uk/insolvency/personal-insolvency/bankrupts-home

 

 

Tech Manual

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Default.htm

 

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/Chapter31-3.htm

 

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part4/part_4.htm#31.7.82

 

Take this post as a guide only, they would need to get proper advice based on their full circumstsnces to be absolutely sure on B/R and any other appropriate options

[debtinfo]

one of the key things you need to ask them is if they have equity in their property

[Bandit127]

one of the key things you need to ask them is if they have equity in their property

If they have no equity then they can buy the beneficial interest from the receiver.

 

I think you should advise them to seek advice from a debt charity. National Debtline, CAB and CCCS (now StepChange) will all give good advice. Bankruptcy could still be an option.

 

You could also look in to making sure the creditors are claiming the correct amounts and have the legal right to do so. If there are any unfair charges on the accounts or PPI they could get their balance reduced. If the creditors do not have the legal right to claim then there are options there. The debt charities will probably not advise on these options - you are better off asking the experts here about that.

[NinaS]

If they have no equity then they can buy the beneficial interest from the receiver.

 

I think you should advise them to seek advice from a debt charity. National Debtline, CAB and CCCS (now StepChange) will all give good advice. Bankruptcy could still be an option.

 

You could also look in to making sure the creditors are claiming the correct amounts and have the legal right to do so. If there are any unfair charges on the accounts or PPI they could get their balance reduced. If the creditors do not have the legal right to claim then there are options there. The debt charities will probably not advise on these options - you are better off asking the experts here about that.

Thank you everyone for some great advise, looking into whether they legally have to pay back the money is something they hadn't already thought of. But how would we know?

[dx100uk]

IMHO i'sd do the CRA , list, CCA's - FIRST - get their TRUE picture of debt

 

rather than believing threat-o-grams.

 

dx

 

 

dx