Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

By Gordon Bennett
#712 Has anyone had experience of losing a home due to bankruptcy?

I am seriously considering bankruptcy as debts exceed 60k. I expect my wife and two young children will be able to stay in the house for a year after my bankruptcy to give them time to find alternative accommodation.
I think it will be hard to find private accommodation as I assume I'll not be able to provide decent bank references and my wife's income is small. I am in well paid employment.

Does anyone know if a local authority is likely to offer us housing when my home is sold? If not then I have to consider selling first and renting before petitioning.

Financial advice is easy to find but I'd really appreciate any information about the practical realities of bankruptcy,

Regards

GB
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By JaneClack
#729 As you have young children if you have not found anywhere to rent the local council would have the obligation to rehouse you.
By Gordon Bennett
#731 Is it possible to find rented accommodation in the private sector if one is bankrupt. I assume I'd have trouble providing bank references!
By Gordon Bennett
#732 Is it possible to find rented accommodation in the private sector if one is bankrupt. I assume I'd have trouble providing bank references!
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By JaneClack
#733 I don't know whether it is easy. I do know it is possible as I know several people in the position. If you have the money for a deposit and employment that usually suffices for a short term let and then you could probably extend. Some modern leases do preclude letting to undischarged bankrupts but if it is a first bankruptcy one would be out of bankruptcy within a year and the Official Receiver cannot get a family out of a property within that time so it is unlikely that you would be looking for a property as an undischarged bankrupt. You would not have to move out either - you can stay with your family. I say that purely as you said "I expect my wife and two small children will be able to stay in the house for a year ..". The OR can only raise money from your part of the equity anyway - would it be possible for someone to buy your beneficial interest in the property to protect the home? Look on http://www.insolvency.gov.uk as there is a leaflet on there called "What will happen to your home?". Good luck.