br

[sjw]

hi just wanted to know if you always have to sell your home if you og BR, if not how can you aviod this. and also can they make you sell your cars if they are used for work purposes.. thanks
just one more thing how long does br last and do you still pay something or is all debt unpaid.

[iva experts]

Hi sjw,

Usually bankruptcy lasts 12 months, after this period you will be discharged and your name will be removed from the insolvency regester etc. However if you have enough disposable income each month you can potentially be ordered to pay for up to 3 years.

Does your house have any equity in it? If so then your creditors would more than likely want this. In regards to your cars it depends what value they are, if the value is over £1,500 then your car can be scrutinized.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[mish1953]

Hi I am BR and have direct experience .
Generally you are an undischarged bankrupt for 12 months sometime less - then you are discharged . BUT your credit rating will show BR for 6 YEARS .
Effectively you will own NOTHING whilst BR , the Official receiver owns it . Some things he will not be interested in- household goods of low value, anything worth money he is interested in , your house for example - if you are in negative equity you will be allowed to buy it back for £1 , if you have positive equity you will be allowed to get someone else to buy the equity from the receiver or the they take it off you.
Your car - is NOT owned by you IRRESPECTIVE of its value unless the OR gives you a letter declaring that the OR has no intrest in it. You have to prove that you need it , that means looking at available public transport to go to work and your personal circumstances.
If you have any surplus income after taking your income and expenditure into account then the OR can require payments for 3 years .
BR will effect you credit rating .
There is no one size fits all bankruptcy
BR is not an easy option - have a look at the Insolvency website. Get as much information and advice that you can.

Mish
BR since July

[Skippy]

I can only echo what Mish has said - despite what the opinion seems to be these days BR isn't an easy option. I am also BR, and it was the last resort for me when my IVA failed. It was a relief to do it, but please make sure you have looked into all your options - DMP, IVA and BR. Please ask as many questions on here as you want, someone will be able to help you.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[mikebdomain]

Fantastic insight and advice from Mish1953 & Skippy

If I may add just a paragraph from my blog

“Under bankruptcy, if you own your house, either solely or jointly, your personal ownership (interest) will pass to the Official Receiver (OR) or Trustee. While this doesn't mean you will be evicted and out on the streets straight away, it does mean that unless you can afford to buy your interest back the house will have to be sold, this will be by court order if you do not agree to do it voluntarily. You will be given one year's grace during which time you can continue to live in your house as long as you continue to pay the mortgage. After that year is over, either you buy back the Official Receiver's interest or the house will have to be sold. Normally your spouse, partner or family member will be able to buy back your interest from the OR.”


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