Bankruptcy question?

[Helen030166]

Hi everyone, can anyone tell me the answer.... my partner has sat down with me and done the Maths and we've decided we are going to have to go bankrupt - if we dont pay our mortgage this week we will be 2 months behind. For those of you who have gone through this you will appreciate that we need the money to save for the bankruptcy fees, and to find money for somewhere else to live (rent and deposits etc.,) but what we are wondering about is does anyone know roughly how long the mortgaqe companys take before they start repossession proceedings as we are worried that if its quite quickly we wont have enough money saved up for the above situation.

Thanks Helen x

[Viki.W]

Hey Helen, I can't answer your question, sorry. I'm sure someone who can will be along shortly to help. You could post this on the banktuptcy sister site too, see if the experts are logged on. Just wanted you to know that we are all here for you, keep posting for support. Viki X

[chris.g]

Hiya Helen, I think the norm is 3 months. I know with the Halifax, our ex-mortgage provider, it was a total of 3 months payments arrears. It may be possible for you to pay a small amount so that you are not a total of 3 months in arrears. That way you have another month to raise the funds.
Hope this helps

[Reviva UK]

Hi Helen

you will need to have missed 3 payments before any action is taken. After missing 3 payments it goes to the legal team and they will start the court process for possession ( NOT REPOSESSION !!! - different thing ).

So if you missed your 2nd payment on June 30th then you can expect the first posession hearing to be about 20- 25th July at the earliest.

If you do absolutely nothing and don't attend this hearing then NR will apply to the court for a reposession hearing which they probably won't do until 25th August. At this hearing the judge will decide how long you get before leaving the property.

So in theory you would be fine until August 31st at the earliest and probably September 14th.

Incidentally you don't need to go bankrupt the next day so suggested timeframe is this:-

Move into new accomodation mid - end of August ( you will have June & July's & August's mortgage money not paid and this will allow you sufficient for rent deposit etc). You will also need to be extra stingy over the next couple of months as every penny counts.

After you have moved and the rent is much more affordable than the mortgage, you will be able to save up for the court fees.

Hope this helps

[Helen030166]

Thanks Chris, will bear that in mind. Did you fill in all the forms yourself o did you get help with them from a proffessional source, as we hae been in contact with one but we dont know how much they cost for this type of service?

[chris.g]

The forms are quite straight forward even though they are long winded. I think the average is around £1000 for assistance. If you can go to a CAB they will help you fill them in,

[Helen030166]

thanks Chris, its just that my partner is self employed and needs to sort his tax returns out first to see what his true income is and also, if we had a £1,000 spare to be able to afford this sort of help we wouldn't be in this mess!

[Helen030166]

there's alot to think about before you even fill your BR forms in isn't there? Its very bewildering !:(

[Helen030166]

Paul, is this about right for the services you provide?

[chris.g]

Helen, it can be quite daunting when you first start. The forms are long and formal but there are plenty on here how have completed them themselves. The can be done online and submitted. I think the fact that they are legal and for br makes them scarier than they honestly are.

[Skippy]

I completed mine online over a month - you can save as you go along and go back and amend the forms as you need to.

[Reviva UK]

Hi

the process itself is straightforward and you can either do the forms online - or download them and start filling them in manually so you have time to understand the questions fully.

The most important bits of the form are :-

1. Income and expenditure ( this identifies whether you get an income payment order)
2. Unsecured creditors - what you spent the money on and when
3. the statement of how you got into the situation over the last X years.

It is CRITICAL that you address the arrears on the house correctly on the form otherwise nyou could have the mortgage shortfall chase you after bankruptcy.

The assisted bankruptcy companies all offer slightly different services and the form filling is probably the smallest part of the process.

The most important part for you is to get a clean piece of paper and map out a timeline ( what you need to do by when). This will include bank accounts, finding a new house, handing back key for old one etc etc.

These can all be done by yourself and with the support of folks on the forum. It is obviously for you to decide if you need the help or wheter you are OK with going through the process with online support from this and the Br forum.

Different people need different things and you are the only one who can really decide if you think personal support is worth it.

[neil277]

Hi
If i'm correct you could still be in the house for upto year while the process takes affect?

Regards.


Neil

[chris.g]

Neil, are thinking of the OR allowing you to stay in the house for upto 12 months? This is providing you are upto date with mortgage and any secured loan payments.

[Helen030166]

Hi, thanks, so does this mean IF we decide to stay in our own home when we file or Bankruptcy as long as we continue to pay the mortgage etc., the OR wont make us leave for up to 12 months. We do have a 13 yr od son. I'm just not sure which way round to do this - either file for BR NOW and cary on paying the mortgage and then let the OR decide what happens to the property and how long they will allow us to stay here before we have to leave OR to not pay the mortgage, save that money up for alternative acommodation and movin costs etc, let the Northern Rock repossess the property THEN file for Bankruptcy whih will incorporate the mortgage shortfall and our unsecured debt????????? Any suggestions?