debt and bankrupcy help

[karenr31]

Hello, just an update, we have taken more advise and contacted our lender and they have said we can sell the house, we are going to put it on in the market asap. we plan to move into our new property in april. fully intend to go br in the next few weeks.will keep you all posted.

[karenr31]

can anyone tell me if selling my home can all the costs for doing this come off the house sale? Obviously we have no money and dont really know what we are doing!

[sequenci]

can anyone tell me if selling my home can all the costs for doing this come off the house sale? Obviously we have no money and dont really know what we are doing!

 

Yes, that's possible. You may also see if you lender has an 'assisted sale scheme'.

[karenr31]

The lender said we can put house on the market as we advised them the alternative was to hand back the keys, we were not offered any assistance. we have spoken to an advisor who said that all fees would come off the house sale and the remainder would go to the lender and im a bit concerned that this wouldnt happen as we fully intend to br as soon as possible.

[karenr31]

Just an update, we had a meeting with cab today and discussed bankrupcy, we are in Scotland, she advised this was our best option, as we went through cab she has arranged for an insolvency company to visit us , she said it would all be done in a home visit and all figures would be discussed and ipa would be told prior to our signing the BR.will keep u all posted.

[karenr31]

Hi, well the house will be on the market in the nexr few days and fingers crossed it will sell and the bank will accept the price, in the mean time the letters from debts are coming in thick and fast as we are now in around 2/3 months arrears. can anyone advise what barclacard and m&s loans are likely to do? sell debt on or go for taking us to court? we are just trying to bide time and get house sold before bankrupcy as i couldnt face the shame of the neighbours knowing we were repossessed hence selling house first.

[Crocdoc]

Two to three months is relatively short term in collection procedures , it is almost certain that the debts will be outsourced or sold to third party agents, the chances of court action at this stage is very slim indeed and even if they went down this route you would be given sunstantial warning in advance of a hearing. (We will cross that bridge if and when we get to it)

 

In the meantime if collection agents contact you by telephone, NEVER UNDER ANY CIRCUMSTANCES ENGAGE WITH THEM OR PROVIDE ANY PERSONAL DETAILS, IF THE PERSIST EVADE THE SUBJECT AND BE AS RUDE AS YOU WANT AS THEY HANG UP WHEN THE KNOW THEY CANNOT INTIMIDATE.

[paulstw]

I was made bankrupt in 2007, I sat through an IVA for three years prior to that, thinking all was well until a credit card company decided to contest it. I was served papers two days before the court date and was not prepared for it, so let it go through. It's only been last month that the entry has been taken off my CRF. Be prepared for everything to be taken off you. I had my bank account stopped with no warning. Went to the cash machine one day and the card got taken away. I went into the bank and they said I had no rights to my funds as it was a term of the bankruptcy. I had to open an account with the Co-operative as they were the only ones who would open an account for people in that situation.

 

I appreciate that 50k of debt and mortgage arrears are a far cry from my 19k, cars and savings accounts. However, just be prepared for everything, as it's such a rocky ride afterwards.

 

I've had to borrow from sub-prime lenders for the last 6 years, high interest rates that make you so angry that you end up consumed with rage at the system, the way it's handled and how it makes you a total outcast. 6 years is a long time and a lot can happen in that time. I ended up divorced due to the pressures and complications of it all.

 

I always try to deter people from going down that route, however this is the first time in 9 years i've actually spoke about it, written it down or advised anyone about what happened to me.

 

If you are going to go down that route, be sure to include absolutely everything, as you can still be chased in 6 years for things that you forgot to include.

 

This is all based on my own experience, regardless of legality, documentation or advice from others. It was hell and still is.

 

just been turned down for a current account, because they had it on their records even though it wasn't on my CRF.....

 

the stress continues...

[sequenci]

company If you are going to go down that route, be sure to include absolutely everything, as you can still be chased in 6 years for things that you forgot to include.

 

That's not right. Any debt would be included so long as it's a debt which is 'provable' in bankruptcy. So even if there are debts missed off the application they would still be included.

 

Seq.

[karenr31]

Thank you so much this has put my mind at ease.x

[karenr31]

paulstw, im sorry you have been through such a bad time and appreciate you putting this down for all to read, we have taken advise from cab and on this forum, we have also opened an account with the coop. I wish you good luck and happiness in the future.

[paulstw]

paulstw, im sorry you have been through such a bad time and appreciate you putting this down for all to read, we have taken advise from cab and on this forum, we have also opened an account with the coop. I wish you good luck and happiness in the future.

 

No worries Karen my own fault for not researching in the first place or getting the right advice at the time.

 

That's not right. Any debt would be included so long as it's a debt which is 'provable' in bankruptcy. So even if there are debts missed off the application they would still be included.

 

Seq.

 

When I spoke to a 'credit expert' on Check My File this was what I was told. No worries as I don't have any doubts about this. Just thought I'd add a little to the mix. Good to see it all being taken care of though

[Crocdoc]

I was made bankrupt in 2007, I sat through an IVA for three years prior to that, thinking all was well until a credit card company decided to contest it. I was served papers two days before the court date and was not prepared for it, so let it go through. It's only been last month that the entry has been taken off my CRF. Be prepared for everything to be taken off you. I had my bank account stopped with no warning. Went to the cash machine one day and the card got taken away. I went into the bank and they said I had no rights to my funds as it was a term of the bankruptcy. I had to open an account with the Co-operative as they were the only ones who would open an account for people in that situation.

 

I appreciate that 50k of debt and mortgage arrears are a far cry from my 19k, cars and savings accounts. However, just be prepared for everything, as it's such a rocky ride afterwards.

 

I've had to borrow from sub-prime lenders for the last 6 years, high interest rates that make you so angry that you end up consumed with rage at the system, the way it's handled and how it makes you a total outcast. 6 years is a long time and a lot can happen in that time. I ended up divorced due to the pressures and complications of it all.

 

I always try to deter people from going down that route, however this is the first time in 9 years i've actually spoke about it, written it down or advised anyone about what happened to me.

 

If you are going to go down that route, be sure to include absolutely everything, as you can still be chased in 6 years for things that you forgot to include.

 

This is all based on my own experience, regardless of legality, documentation or advice from others. It was hell and still is.

 

just been turned down for a current account, because they had it on their records even though it wasn't on my CRF.....

 

the stress continues...

 

The initial post is from a Scottish resident, the process varies considerably from other areas of the Uk, all advice previously provided has been based on Scottish law

[paulstw]

The initial post is from a Scottish resident, the process varies considerably from other areas of the Uk, all advice previously provided has been based on Scottish law

 

 

Well I live in Glasgow so I'm sure all went in the accordance with scottish law when I went through it.

[Crocdoc]

Well I live in Glasgow so I'm sure all went in the accordance with scottish law when I went through it.

 

I cannot under how you would have an IVA prior to Bankruptcy as they don't exist in Scotland. However It is true to say that it does make obtaining credit difficult even after discharge, nevertheless if you have several unsecured debts and unable to meet the mortgage and face a shortfall upon the sale of the property, there are very alternatives.

 

The bank account issue can be addressed if you deal with it in advance of Sequestration, which has been done in this case

[karenr31]

ok so we have the house on the market and halifax agreed to this, there is likely to be a shortfall of approx 25k. i sent an email to the negative equity team asking if we could accept any reasonable offer and thet replied we could accept in principle but we had to phone them if we get an offer and this would be sent to another dept, the email also stated if it was beneficial to the bank and we offered a re payment for the shortfall this would likely be accepted. we advised the bank we were trying to get the best price without handing back the keys and they agreed to us selling, what now? we plannned to sell and put shortfall into bankcupcy as we have no intention of repaying and br is the only route.Are they likely to accept any sale as this would be better than voluntary repo? our house should sell and would be better than auction surely! please can anyone advise or should we just say we tried and hand the keys in?

[Crocdoc]

If you and your partner intend to bankrupt, the figures become irrelevant from your point of view, you could simply go through the BR process at this point and entire the entire outstanding balance into the application. The figures will then be ammended by the Accountant in Bankruptcy once the sale is complete. I cannot see what there is to gain by paying the selling fees from you own pocket.

[karenr31]

The selling fees all come off the house sale so wont cost me anything, we were trying our best to get the best price for the halifax and also to save the embarrassment of a repossession. I didnt realise we could go BR and still be selling the house? wouldnt the accountant in bankrupcy inform the estate agent ?

[IdaInFife]

I think what croc means is we can see no merit or gain to yourself trying to sell the house if you are going bk.

 

although i know you do not want people to know about it

[karenr31]

Thank you for the reply, I am ashamed of the position we find ourselves in and would prefer to at least try and sell the house to have a lesser amount for shortfall, perhaps im wrong but it makes me feel a little better knowing im at least trying .

[karenr31]

Two to three months is relatively short term in collection procedures , it is almost certain that the debts will be outsourced or sold to third party agents, the chances of court action at this stage is very slim indeed and even if they went down this route you would be given sunstantial warning in advance of a hearing. (We will cross that bridge if and when we get to it)

 

In the meantime if collection agents contact you by telephone, NEVER UNDER ANY CIRCUMSTANCES ENGAGE WITH THEM OR PROVIDE ANY PERSONAL DETAILS, IF THE PERSIST EVADE THE SUBJECT AND BE AS RUDE AS YOU WANT AS THEY HANG UP WHEN THE KNOW THEY CANNOT INTIMIDATE.

Help. getting hounded by m&s and we have currently ignored all calls, do you advise we tell them we intend to go BR or just ignore and wait on them selling the debt on, help much appreciated .

[IdaInFife]

i would ignore

[karenr31]

Hello, well house on market one week and just accepted full valuation of 85k, we have an endownment worth 9k which also tied to morgage so in theory will leave a shortfall of approx 25k. Can you advise what to do if the bank ask us to accept shortfall? if we accept shortfall can this still be added to impending BR. We would like to think the bank will see it in their best interest to accept the offer as it is full market value and accept their loss as the alternative is us handing back the keys and them having to then sell it and pay all costs etc,any advice is much appreciated.

[sequenci]

The shortfall can be included within your bankruptcy. Please do not sign a 'deed of acknowledgement' after the bankruptcy date as this has the potential to make you liable for it once again. In short you don't need to sign anything the lenders tries to get you to do.

[karenr31]

Hi, now have a letter from bank of scotland ref our overdraft,

we have 4k and rest in charges, as we havent paid as saving for bankrupcy we now have a letter stating if we dont call and pay we will instruct our solicitors who will claim what you owe through the courts.

 

Is it likely or will they pass on to debt collection?

 

just trying to get a few more weeks before bankruptcy to get house sold and move to new rental,

 

should we phone them and advise what we intend?

 

dont want court action before we BR.