being discharged from Bankruptcy

[Nicki]

Once I am discharged from BR NOV 08(hopefully will get early discharge ???))) do I still give a yearly account to OR for my expenditure or do i just stick to the current payments for the remainder of the income payment agreement currently paying £375 per month... make last nil tax code pymt next week then 32 payments left

thanks Nicki

[Adam Davies]

Hi
You only need to inform the OR if there is a change to your circumstances,normal yearly pay rises you would ignore but a major promotion you would inform them.
regards

[wen]

Is that true Andy? I was under the impression that in a change in circumstances was only for the period of bankruptcy.

Obviously if circumstances changed for the worst during the IPA after discharge then obviously the I/E would need to be re-addressed, but I didn't think increases in income would have to be declared?

[m15]

hello everyone
need some advice, we are looking to giving our property up and going into rented we have found somewhere and mum and dad have kindly given us money to do this. so all we need to do now is give the keys to our mortgage company NR. We have no money left in the property and we have a mortage of £177'000 and a secured loan on the property of £54'000 and credit card debts of £37 so there is nothing left. my husband earns £2400 a month and we have 3 kids and 2 dogs. we would be left over with about £150 a month if we are lucky. thats without paying the cards off. We have had loads of advice and have been adviced BR. Would it be better if we just hand over the keys and move out. We have opened up a new bank account as well. Our property is worth £200'000 but the one across the road has been on the market for a year and has had to go down to £179'000 as its not selling it is the same as ours. Are we doing things right.
Also the expencise form what can we put down how much for food and is there anything else that we can put down that we might think is not allowed.
Thank You

[aguise]

Hi there m15
When doing your income and expenditure put it as it is. Everyones needs vary, if too much and (I am only assuming you are considering bankrupcy)then the Or will say so and reduce and in some cases may rise. Put what you reasonably need and include everything dont forget prescriptions haircuts and in bankrupcy quite often a small holiday fund is allowed per month.

All the best, a rough point in life but it will be so much better dealing with it and you will be a better person for doing so.

Ang

[chris.g]

M15, if you're feeling brave you could ask for a holiday allowance! I did and we got it, £70 per month! [;)][:D]
As far as the handing back of the house keys...we tried to hand our house back to Halifax as advised by the OR. I phoned the mortgage advice line, was told to go into branch and fill out some forms and hand the keys over. Not that simple!!!!! when we got there, they didn't have a clue! They told us to hand them in at the estate agent.....Why, I asked, we don't have the mortgage with the estate agents......they had no forms and no idea, they just kept saying the house wasn't at repossession stage---we had only missed 2 payments. Anyhow, typed up a letter to say we were 'voluntaritly surrendering' the property and went down again, they gave me the forms to fill in!! I had to take them home for hubby to sign so it took 3 visits in total to hand the keys in!!!! [:(]
All I would suggest is to contact NR and ask what the procedure would be and maybe get them to confirm it in writing so you can produce the letter if there are any problems.

[chris.g]

I also thought that after the br was discharged, unless there was an IPA/IPO set up, you weren't obliged to inform the OR of any change of circumstances, I'm sure Melanie confirmed this on one of the posting...
Can one of the experts clarify this?? Thanks

[Adam Davies]

Hi
Nicki is in an IPO,if a person is discharged and NOT in an IPO then there is no need to let the OR know about any change of circumstances
Regards

[chris.g]

Thanks Andy, that's what I thought.

[flash]

hi to m15, im new to this so bear with me,beware of handing back keys to mortgage companys as they dont let u of the hook with secured debt they will chase u forever for the outstanding balace,what u have to consider is this your secured debt is approx £231000 i think from what i read your house is worth £200000 if your lucky
speaking from experience what u could do is, But your gonna have to have nerves of steel" the credit card debts are unsecured so always pay the mortgage first regardless of how much grief u get from the credit card companies, the answer is bankrupcy if you can weather the storm this will stop the credit cards in their tracks bankrupcy protects u from unsecured debts but not secured debts, the house would be in negative equity so u should be able to hang on to it certainly if u have children under the age of 16. dont forget going bankrupt costs money about £485 each person and your credit file is nuked for 6 years you have to give up bank accounts and pay every thing in cash including your mortgage but it can be done belive me" best thing is get mum and dad to hang on to their cash and buy your food each month and clothes for the kids,in bankrupcy you may have to sell your house one day but it would give u time to think about what to do in a more controlled way.
get lots more advice first dont make any decisions in a panic.cheers.

[jane.l]

But also, don't forget, if you go bankrupt in negative equity and want to keep the house, you have to continue paying the mortgage and secured loan and get someone to buy out the beneficial interest from the OR.

We could not afford to do this as the secured lending was way too high, we were paying £1300 per month for the mortgage and secured loan and now are renting a new house for £575[:D]

[Adam Davies]

Hi
quote 'you have to give up bank accounts and pay every thing in cash including your mortgage but it can be done belive me'
This is not true,you can still have a basic account in bankruptcy and pay via DDs.You can also have a debit card
Regards