I have taken some legal advice and I have decided to go bankrupt. I can no longer afford my mortgage and I have a substantial amount of debt. Just a few questions which I am unclear on:
1) Am I able to stop struggling to pay my mortgage before I put my bankrupcy application in? I am currently not in any arrears, but I cannot afford any further mortgage payments, help?
2) When you submit your application,, on average how long does the process take from start to finish?
Hey amyj, welcome to the forum. I know you said you have had legal advice but it may be good to speak to an insolvency pratitioner for a second opinion. After three missed mortgage payments, your mortgage company will start proceedings against you, I presume you want to hand back the keys and move to rented, or is there any chance in selling it? You can make your own appointment at your nearest court that deals with BR, there may be a wait so book your appointment as soon as possible while you're completing the forms.
Skippy is around so she will advise you much better than me. Good luck. X
Yes, I have spoken to an insolvency contact through a family member, but as I was getting free advice I don't like to keep pestering them! I am aiming to get all my forms ready for the start of December, and I am only looking at missing 1 mortgage payment which I can't manage to pay, and I just wonderd if that would make a lot of difference missing one payment. I am happy for the house to be sold through the bankrupcy process, as there is no chance of me selling it!
I am currently living with my parents anyway, the house is just a shell which I am paying the mortgage on...I have sold lots of my furniture, and moved out so I don't have to pay utility bills/council tax etc, to try and keep afloat!
Also, another few questions, if anyone knows:
- what will happen to my mobile phone contract throughout the bankrupcy process, will it remain active? I require my mobile phone for my job.
- I only have a basic bank account, with a cash card etc, do I have to close it before hand?
If you're not planning on keeping the house there is no point in paying the mortgage on it. I didn't have a house when I went BR, so I'm not the best person to advise you, but as far as I'm aware you would need to declare the house on your BR forms and any shortfall would be caught by your BR.
You would need to contact your local county court to find out if you have to make an appointment for a BR hearing. Some courts have a walk in system, whereas others have an appointment system with a waiting list.
Is your mobile phone contract in arrears? I was allowed to keep mine as I wasn't paying over the odds (I was paying £35 at the time) and I didn't have a landline. However, even if the OR is happy with you keeping the contract it can depend on your service provider. Vodafone were fine with me, but I've heard of other people having their contracts terminated. It might be worth an anonymous phone call to the company to ask their policy.
There is no need to close your bank account as it's a basic account. The chances are the OR won't be interested in the account, but it then depends on the bank's policy. Who is the account with? Quite a few of us on here have the Co-op Cashminder account which is a basic account with a Visa Electron card.
When you present your petition the length of time it will take to get to the order stage will depend entirely on the backlog faced by your local county court. If you are lucky, you will be dealt with on the day you walk into the court. However, I have heard of debtors petitions taking 2 months to be heard. With your use of the word "submit" I assume you are talking about an online petition? I suspect it may be the same but I don't know anyone who has actually done it, and maybe others can give you an idea.
The mortgage? You are probably thinking if you can't pay the mortgage why try any more? I assume that once you leave your house you will need to rent. You could take the view that you should now be saving up and getting a rent deposit together. If that is the case you will probably find it much easier to find somewhere in the commercial sector if you move before the bankruptcy. Also it will be a very bad move to go bankrupt before the rent deposit has been paid to your landlord, as your trustee is likely to want it instead. Alternatively you could go bankrupt, do nothing until the mortgage lender kicks you out which may then elevate you up the council house waiting list.
My immediate thoughts are that option 1 might be the best way. With more and more repossessions taking place I can well imagine the council housing system now being under enormous strain. Those are 2 possibilities - there may be more. I must admit, however, to a little knowledge being a dangerous thing and you should seek advice from a housing specialist before you decide what your next step should be, as once you stop paying your mortgage it may be difficult to reverse.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Thanks for the advice, I am not in arrears with my mobile phone at all, so I will do as you suggest and ring them and ask their policy anonomously! My account is with Nationwide Building Society.
ianmillington wrote:
When you present your petition the length of time it will take to get to the order stage will depend entirely on the backlog faced by your local county court. If you are lucky, you will be dealt with on the day you walk into the court. However, I have heard of debtors petitions taking 2 months to be heard. With your use of the word "submit" I assume you are talking about an online petition? I suspect it may be the same but I don't know anyone who has actually done it, and maybe others can give you an idea.
The mortgage? You are probably thinking if you can't pay the mortgage why try any more? I assume that once you leave your house you will need to rent. You could take the view that you should now be saving up and getting a rent deposit together. If that is the case you will probably find it much easier to find somewhere in the commercial sector if you move before the bankruptcy. Also it will be a very bad move to go bankrupt before the rent deposit has been paid to your landlord, as your trustee is likely to want it instead. Alternatively you could go bankrupt, do nothing until the mortgage lender kicks you out which may then elevate you up the council house waiting list.
My immediate thoughts are that option 1 might be the best way. With more and more repossessions taking place I can well imagine the council housing system now being under enormous strain. Those are 2 possibilities - there may be more. I must admit, however, to a little knowledge being a dangerous thing and you should seek advice from a housing specialist before you decide what your next step should be, as once you stop paying your mortgage it may be difficult to reverse.
As I said in my previous post, I am living with my parents now, but will be looking to move in with my boyfriend after the bankrupcy goes through, so I won't be homeless and I don't really need to look for anywhere else to live before the bankrupcy process starts.
As you'll understand my first post was done without sight of your second post, hence it missed the target (by some way it would seem[:)])
In view of your situation frankly as you are already out of there there is absolutely no point in you keeping making the mortgage payments. Use your next mortgage payment to pay for your petition instead.
Ian
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Thank you for all your help on the forum today! I have rung the courts and I will have all my forms prepared for my appointment on the 8th December....Thanks again!
