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

Moderators: TalbotWoods, JaneClack

By Freddyfish
#219551 Hi there

Bearing in mind how one has to account for sold assets pre bankruptcy what view does the OR have if you have saved cash in accounts because you have stopped paying mortgage etc. If you take it out when account is closed dont they ask for it back? We want to put monies aside for a rent bond and moving. Do they allow for this?

Also how does the OR view you renting a property and not moving in straight away because of schools etc. So you may have paid rent for a month or two before BR.

We have our house up for sale. If we stop paying how long would a possession order take. We are already in arrears. Or would the mortgage company let us be if they know we are going to apply for a BR. I have heard they let you stay in a property for a year post BR, is that the case even when you cannot afford the full mortgage?
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By JaneClack
#219576 The OR will often allow people to stay in their property whilst they sell it for the bankruptcy estate. For the first year they allow family circumstances really and then they will insist on it being sold ie the bankruptcy then takes the priority. However, the mortgage company will certainly not allow you to saty for a year whilst not paying the mortgage - if you have the funds to pay it it would need to be paid. The fact you are saving it sounds very odd when you have bills to pay.

Any shortfall will go into the bankruptcy estate anyway so the best idea is to get living arrangements sorted before going bankrupt.
By Freddyfish
#220480 Hi Sarah

Very late reply to your reply sorry. By saving i meant to get a bond to keep a roof over our heads and for the BR fees. We have no other way of getting the money.I would have paper evidence of these so i am assuming this would be ok. But if i sold an asset like a car should i remove any monies left before the bankruptcy and pay to the OR or just leave it in the account for the OR to divvy up?

Thanks for all your input on the site