BR AND INCOME

[pm.e]

I have had enough of all this debt, and I am going to make myself BR.

If my income is the only family income (I have a wife and two small children), and I petition for bankruptcy what happens to us because I am the only income?

My income and expenditure shows that we do not have any surplus income so I suppose the O.R would not insist on an Income Payments Arrangement/Order?

I just want to make sure that when I do petition for bankruptcy, we can stay in our home.

We also have negative equity through charging orders on the home (on my wifes beneficial interest)

I was hoping that:
1) I could go bankrupt
2) My wife buys out my beneficial interest for a nominal amount due to the negative equities through the mortagages, secured loan, and charging orders of my wife.
3) In the event that my wife couldnt buy out my interest in the property, could my parents?

Any help to me in this mess would be very much appreciated.

[MelanieGiles]

Hi there

If you have no disposable income, then there is no money for the OR to assess an Income Payments Order on, so unlikely that you will have to pay anything.

If you have negative equity in the property, get your wife you make an offer of £1 to the Official Receiver to acquire your beneficial interest. This will protect you both if property prices rise in the future. Your wife will have to cover the legal costs incurred by the Trustee, but this should be no more than £300 and of course you will need to maintain payment to the mortgage and secured loan.

It doesn't matter who buys out the interest, but obviously pick someone you can trust.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pm.e]

Hello Melanie,

If I petitioned bankruptcy Monday, how soon could my wife ask the OR to buy my beneficial interest?

Many thanks,

[scaredkez]

the OR will write to you in regards to the Bi, i was told to put in writing that i had an interest or had someone, then they ask you to get an upto date valuation of the property 2 estate agents will do, do this now and point out all the problems etc that may affect the selling price, i say do it now as i had to explain to the estate agents why i needed a fast sale valuation and they wanted to charge me £150 before they would even come out to the house where it is normally free.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Yes - get that agreement in place as soon as you can.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk