Bankrupcy

[jbutler]

HI All

Need some help

I had my IVA fail in January & havbe been looking at setting up at DMP but been told this will also fail looking to go bankrupt. Have some questions.

1/Will my new bank account be frozen

2/ Will i have to stop paying my mortgage as this will be getting sold as part of the bankrupcy

3/ How long will i have to get out of my house once i file my forms

4/ As me & my husband dont have the mony for the bankrupcy fee can we not pay are mortgage for month so we can us that money.

Hope some one can help

Thanks

[Reviva UK]

Hi jbutler

sorry to hear that the IVA has failed. but well done for giving it a go.

To answer your questions ;

1. The freexing of a bank account will depend upon your banks policy and what type of acount you have. Please advise which bank and the facilitie you have - generally you would not be allowed a debit card or cheque book, although the COOP have a great account called CASHMINDER which gives you a visa electron card even in Br.

2. Mortgage & house. It would be good to get some idea of the house situation as depending upon the equity in the house it may be possible to remain there.

so if you could post the following we can advise

a. mortgage value
b. mortgage monthly payment
c. house value
d. arrears on mortgage.
e. what were you paying per month in IVA
f. do you have any disposable income each month

As soon as you can reply to the above I will be able to give you some more answers.

The most important thing to remember is that although it is a very stressful time you need to think clearly and plan carefully and methodically.

You need to ensure you have somewhere else to live, and it may be easier to rent prior to Br rather than afterwards


look forward to hearing from you

[MelanieGiles]

Can I ask why you have been advised that a DMP will not work?

[jbutler]

my house if valued at 125k to 130k & are mortgage if 121k, we pay 791.50 a month payment.We currently have no arreas on the mortgage. We were able to pay 259.00 into the IVA but we now cant pay any thing as are benifits have been dropped by 240 a month.

We were not able to do a DMP as a unsecureed loan we have is with NR part of a together Mortgage & payplan said that no one would include this as theuy will just secure the loan.

[MelanieGiles]

I don't necessarily agree about the NR unsecured loan, but the main reason seems to be that you have no disposable income in which case bankrupty is perhaps the only realistic option for you.

[Reviva UK]

NR may be more inclined to accept a DMP rather than br given the realistic option.

So this is certainly worth another look at if you don't want to look at Br.

However on the Br side you are probably right on the verge of having no equity at all - in which case the property would remain safe during Br provided that you were able to meet the mortgage payments.

As with everyone looking at a debt solution - particularly Br - you need to get a realistic timescale together so you can plan bank accounts, saving for court fees etc etc . So time for a clean piece of paper and a calendar