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

Moderators: TalbotWoods, JaneClack

By watavIdun
#3102 Hi

I've read a lot on here about bankruptcy and would like to get a few possible misunderstandings cleared up.

If you are able to get someone to buy the beneficial interest (your share of equity less selling costs?) in your house is it definitely safe?

I can prove that my partner put significantly more into our house as a deposit than I did - will this mean my beneficial interset is much lower?

If you have a car (not on HP) how do they decide if you can keep it or not?

I am confused about when the bankruptcy ends, seems like it would be less than a year - but IPA's or IPO's last for 3 years. Does this mean you become discharged after 1 year but still have to make a further two years contributions?

Thanks for any help
User avatar
By JaneClack
#3104 Yes to your final question. If your circumstances do not change your IPA or IPO lasts for the three years.

Yes, if someone buys the beneficial interest for the proper price it does protect the property and is just as easy to do in bankruptcy - they even have their own conveyancing system. Just get it organised straight away - people may have had difficulties but there has always been a positive resolution. If it is done outside of the bankruptcy it would have to be proved that there had been no transaction under value so I think it is easier once you are bankrupt. You can try proving your wife had put more in - and if you have proof that will work in your favour - but is she paying half the mortgage now too?

If you need a car for work and it's value is not much more than £1,500 the OR will probably let you keep it. However the Porsche will have to go back and after it is sold the OR will give you the money to buy a cheaper run around. I have seen cars of more value being allowed too.

Hope that answers your questions.
By watavIdun
#3107 Thanks Sarah

My partner and I aren't married (not sure that makes any diff?).
We have the original solicitors docs which show she put £11,500 and I put £4,500 - this was just how the solicitors did it when we sold our previous homes two years ago - could prove lucky? Equity now £18K

Yes she pays half the mortgage and house bills.

The car would be a problem, worth about £6K so I guess I'd lose it.

One other point if you don't mind, what would happen to the house contents, tv's, DVD's etc etc? It would be impossible to say who owns what.

Cheers again.
User avatar
By JaneClack
#3108 and they would be extremely unlikely to take anything except for the quadbike in the garden, the villa in Spain or the Jackson Pollock on your wall. Unless it is worthwhile for the OR to send someone round to collect the item, store it, sell it at auction, take their cut and give money to the OR then he is not going to waste his and your time. You can buy a DVD brand new for under £40 nowadays so unless your surname is Maxwell I think you are safe - and if it was Maxwell you'd be looking at five years now as it would be a second bankruptcy! Stop worrying.

I cannot comment on the beneficial interest and the division I can just comment on generalities. Contact one of the free debt advice agencies - we mention them all the time -NDL, FCL/Payplan and CCCS as well as the CAB - as they would be able to give you more specific advice.
By Bayroo
#3159 Morning!

If you work for a company or supply a credit card as part of the job. Company expenses. What would happen if you declared the big B?

Could you still keep the card as it was supplied by work and only ever used for WORK business?


User avatar
By JaneClack
#3182 If it is a company credit card and they are aware of your situation the OR would not have a problem with it. In bankruptcy you have a duty to inform the LENDER if you are applying for more than £500 in credit. I do know businessmen who have cards in IVA scenarios which are paid off in full every month but I doubt whether any independent lender would allow a credit card to you during bankruptcy even if you did tell them the position. Your company would be the one taking the risk so the OR would not have a problem.