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

Moderators: TalbotWoods, JaneClack

By dododo
#3035 Hi
I'm new to all this!

I bought a house with ex-partner dec 02. I had 7k on credit cards (which were my partners bills but in my name) when we first moved in. I left my ex March '04. By the time I left I had around 33k on credit cards. I had always paid the minimum each month but when I went on marternity I could not afford and my ex didn't help out. The figure went up to 30k as decorating house, my ex wasn't paying the mortgage so I'd pay on my card etc....

I was going to go for an IVA and it was in the process of being accepted but because I then left my ex I knew I couldn't commit myself to £250 a month for next 5 years.

I got in touch with National Debtline who advised me to write to my creditors and explain my situation and that I was not on benefits. I now pay them between £1-£10 a month.

I still have my name on the mortgage (which is 4months in arrears as partner didn't pay for 6mths until Bank of Scotland said they would take house away) and want my ex to sell up - he still lives there I moved out.

I don't want this 30k hanging over my head. I will be going back to work v.soon but on v.low wage (around 4k a year). What would happen if when he finally sold the house I went backrupt after - would the OR know? I owe money to family and would prefer to pay them back money I got from the house - bearing in mind I would not come out with a lot from the house.

I don't see why I should go bankrupt while my ex still in house, my half would go to our bills and he would keep the other half. He seems to think as in my name my problem (I know stupid).

User avatar
By Nicky
#3038 If your name is still in the mortgage and you went bankrupt, your ex would have no choice but to either sell the house or give you your beneficial interest! Infact the same would apply if your name wasnt on the mortgage because you still have a beneficial interest there.

You couldnt sell the house, get the money and pay your family off because the OR would most definately find out about it and then probably claim the money back from your family through the courts. It really isnt worth trying anything like that.

The best way forward when going bankrupt is to be honest about everything, then you have no skeletons in the closet which can be found out later which can jepodise your bankruptcy and you end up being bankrupt for 15 years instead of 1.

Sorry its all so negative regarding your question, but honesty really in the best policy in this case. :wink:
By dododo
#3291 Thanks for advice Nicky.

I'm not trying to look at a way to get out of not giving money. It's just my father is v.ill with cancer and not been working past year and I'd rather pay my parents and grandparents money as they really need it. It's a really complicated situation which this time last year I made myself really ill over.

I think for the moment I will just have to continue paying the creditors the goodwill gesture money and when start work in few weeks start paying them a bit more but still not enough to pay for an IVA.

If the house was sold this year and I went bankrupt in a year or so would that go against me?
User avatar
By Nicky
#3294 I wouldnt of thought so, but I couldnt swear to it. I think it is mainly directed at folk who know they are going to make a petition so sell a property and use the money in one way or another and then declare bankrupt. If the OR smells something fishy going on, this is where someone would likely suffer the consequences of a long Bankruptcy term.

I understand your concerns regarding your parents, but unfortunately, to the creditors, they would not be priority.
User avatar
By JaneClack
#3295 Just remember that the OR will want to know where the money from the property has gone if one has been sold in the last seven years and paying your parents would cause questions. Unless of course they had lent you money to buy the property in the first place. :wink: