Bankruptcy Question.

[kilohurtz]

Hi,

I am considering filing for bankruptcy but I am a little concerned about my situation and whether I would qualify.

I have about £46k of unsecured debt

I came out of a very nasty relationship some 20 months ago. In this relationship I brought a joint house with someone, I have continued to pay half the mortagage on the house even though I have not lived there in over 23 months and have nothing to do with the house.

The house has been on the market for nearly a year but has not sold. The ex is playing games by not wanting to reduce the house price and by turning what few viewers we are getting down saying she is busy when they want to view. I feel I have done my best but now enough is enough all my debt is because of this house including the loan I took out when I lived there. I am living off my credit cards every month which are through the roof.

Can I file for bankruptcy even though I still own the house or do I have to wait until its sold?

If I can file for bankruptcy what happens to the house being that it is in two names, has not sold and she is still living in it.

I am really worried about bailiffs and being taken to court if I stop payment.

I have spoken to the mortgage company but they just keep telling me its in my best interets to keep paying....... (thats now a matter of opinion)

There is about £42k equity in the house £30k of this is not mine and has been signed over to her the rest would be split 50/50 after legal fees and estate agent fees..

Also another question what happens if during and IVA or Bankruptcy you lose your job?

Thanks alot

[Jo Rolland]

If you file for bankruptcy the OR will require you share of any beneficial interest to be paid direct to him either by the sale of the property or by a third party. As the house is on the market already, he may wait for a sale to go through, however he may intervene if as you say the price is on the high side and this may be delaying the sale.

It sounds like you have made the decision to file for bankruptcy and therefore if I were you I would continue with this and let the OR deal with the property.

[kilohurtz]

Hi Jo

Thank you for the reply.

So if the OR decides to wait for the sale of the house would I still need to pay the mortgage and all the other debts which I can no longer really afford to pay?

Would the OR take over my role of the house? If so what happens if he/she is met with the same resistance that I have from the ex by her not wanting to reduce the price and by turning viewers down.

Do the courts make me bankrupt and then deal with the house or would they wait for the house to be sold before making me bankrupt or at least before looking at my case.

thanks

[Jo Rolland]

In your situation the OR would almost certainly ask you to cease payments to the mortgage and yes he would take control of your assets.

I cannot say whether he would wait for the sale of the property or not, that will be at his discretion.

With regards to your bankruptcy petition, you can file this as soon as you want to, it is not reliant upon the property being sold.

[kilohurtz]

Hi Jo,

If I went down this road would I still have to worry about bailiffs and all the other nasties that come with stopping paying bills? or would there be some protection from the OR or the courts?

Currently I have not defaulted on anything.


Thanks

[ianmillington]

Hi

Once a Bankruptcy Order is made, none of your unsecured creditors can take legal action against you.

ian

[kilohurtz]

Hi Ian

Thanks for the reply.

Does this apply when the bankruptcy petition is made or only when it has been accepted by the courts?

I am right in thinking that the courts can decline a petition for any reason?

[Jo Rolland]

In normal circumstances, bankruptcy petitions are not refused. The court can delay a petition if they require additional information.