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

Moderators: TalbotWoods, JaneClack

By chivasgirl
#2797 Does anyone know what happens if nobody buys your beneficial interest in your property and the OR decides to sell the house?

Who sells the house?

How long do you have to find somewhere to live?

Will the OR release cash from the sale for you to pay rent deposit/advance payment and to pay for moving expenses?

We had approx £6k equity when we purchased, don't think it would be more than about £10k now.

Was hoping relatives were going to help us out, but getting our name in the local paper appears to have changed their minds, as the name is well-known in the area. Our only choice appears to be to go ahead with the bankruptcy and to live with another family member. Will have to rehome 5 cats, 2 of which are old, 2 cannot eat dried food (a nice cheaper alternative to regular food) or they could die and the other has a heart murmur, so that should be fun. Not to mention the fishtanks, nobody ever wants to buy a fishtank with the fish in it, so what are you meant to do??

Anyway, if anyone has ever gone through this, I would really appreciate your experiences.

Thanks.
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By JaneClack
#2806 Not quite sure whether you have gone bankrupt or not - question does not make it clear.

If the OR decides that you must sell your home -he has three years in which to decide this during which the beneficial interest in the property is vested in him - he can arrange for the house to be sold or you can put it on the market yourself. With your level of debt and the equity you reckon there is in the property there will be none of it coming back your way except for a reasonable amount for removal expenses etc. Discuss this with the OR as we can never second guess them!

You can go on the council waiting list but they are usually long and unless you have children you would not be egarded as a priority so you will be looking at the private rental market and msot of these will want a deposit of one month's rent anyway. The place to visit is the CAB who will be able to give you face to face advice on your particular circumstances and have good links with the council and other agencies.

If any other posters have experience in this field we would be grateful for your input.
By chivasgirl
#2807 Sarah, we have taken alot of advice from Simon and further to that have decided that the best way forward, in all likelihood, is for us both to go bankrupt. The "in all likelihood" is because if our equity is too high, ie over about £12k, they cannot afford to buy 100% of the equity. We know this won't be good enough for the OR, so we are proceeding with a valuation asap and are hoping to file for bankruptcy by/on Friday.

We are also now concerned that as one of the loans is with the same bank as is our mortgage provider, they may be able to make us sell. We have not been behind with our mortgage repayments and are up to date, but it is now becoming a worry.

Any personal experiences would definitely be appreciated. I am due to start a new job after several months of being unemployed, a week Monday and don't want to start it with all this over my head.

Thanks.
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By JaneClack
#2808 The bank cannot make you sell - unsecured debt is precisely what is says and has nothing to do with the mortgage. The only way the bank could make you sell is if you were behind on the repayments and, as this is not the case, they cannot do so!G

Simon will have given you the best advice for your circumstances - my question was because I did not know whether you had already done the deed or not!

Good luck for you new start.
By chivasgirl
#2811 Thanks Sarah. I was concerned that because one loan is with them (as well as the bank account, but we are aware of what we need to do on that one), they might try, but we are up to date at the moment.

I have now found some really useful information on the Freedom of Information website, setting out the procedures that the OR follows in certain situations. http://www.insolvency.gov.uk/pubsscheme/ A very helpful site.

We are arranging a valuation this week asap and just fingers x'd it's not too much more than we paid....
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By JaneClack
#2812 Thanks for the weblink - I am sure lots of others will find it useful and we look forward to hearing from you again - your experiences will be helpful for others too.