Going Bankrupt - what counts as income

[sirbob10]

Hi. I know I'm posting in the wrong area but my iPad is refusing to let me post under bankruptcy.

 

My husband and I were wondering about what is classd as income when going bankrupt.

 

I work part- time and he is in receipt of ESA contribution based, PIP. We also receive Child Benefit, CTC and WTC along with Housing Benefit and Council Tax Benefit.

 

We have a lot of debt and are just waiting for our home that was repossessed to sell so we can add the shortfall to the bankruptcy.

 

Many Thabks

[The GodMother]

Bump can this be moved please

[p3t3r]

hi, sorry cant advise in relation to what counts as income in bankruptcy.

 

about the shortfall of your repossessed property - this can be claimed back whether or not its put into bankruptcy as far as i know

 

if you have a google, about not signing the banks paperwork saying you are responsible for the shortfall - don't sign it...

[BazzaS]

hi, sorry cant advise in relation to what counts as income in bankruptcy.

 

about the shortfall of your repossessed property - this can be claimed back whether or not its put into bankruptcy as far as i know

 

if you have a google, about not signing the banks paperwork saying you are responsible for the shortfall - don't sign it...

 

"the shortfall of your repossessed property - this can be claimed back whether or not its put into bankruptcy as far as i know" is incorrect.

 

 

Secured loans (including mortgages) can't be included in bankruptcy : where the asset used as security is maintained - so if you have a mortgage and want to keep the house then the mortgage can't be written off in a bankruptcy.

 

However, if the house is repossessed (or sold, with a shortfall), then the house (/asset) isn't kept ('maintained'), and mortgage shortfall certainly can be included in a bankruptcy.

 

(Note: this applies to mortgages, not to charging orders [made by a court] which do "survive" a bankruptcy)

 

If this wasn't the case there would be many fewer bankruptcies; it is intended (although still a measure of 'last resort') as a "fresh start": and who would go through all of that to still face a crippling "mortgage shortfall"?

 

http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e/bankruptcy/bankruptcy_explained/debts_that_bankruptcy_covers.htm

 

Is your mortgage covered by bankruptcy?

Bankruptcy won't stop your mortgage lender from taking steps to repossess your home if you're behind on your mortgage. However, if your home is repossessed and sold, but doesn't raise enough money to pay off your outstanding mortgage or any other debt secured on it, the remaining debt will no longer be secured. This means you'll be released from it at the end of your bankruptcy. You'll also be released from it even if your home is sold at any time after your bankruptcy has ended.

[sirbob10]

Hi

 

Yes our house was repossessed last September. We had a secured loan with Picture on the house. We also have a charging order from Natwest but not sure how it will work. My husband and I had a joint loan with Natwest which we defaulted on. It was passed to Irwin Mitchell who went after both myself and my husband separately but for the whole amount each. They applied for a charging order in my name but not his. So how would it work in going bankrupt.

 

Thanks