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Hi all,
My brother has just found out that he is likely to receive a 6 to 12 month prison sentence when he goes to court soon.[:(]
He has debts of £12,000, owed to 6 creditors and is currently unemployed.
He is managing to pay his three smaller creditors (totalling £30 per month), but has fallen behind by four months with his other creditors, who in total are asking for £250 per month.
He owns a sixth share in our late Mother's estate totalling apprx £15,000 and we are hoping to get the house on the market over the next 2 to 3 months.
He has talked of letting his creditors make him bankrupt, as he does not have the £350 or so to file for his own bankruptcy and has no means of finding this money.
Does anybody have any suggestions as to whether this is his best option, or if he could work something out with his creditors to pay from the sale of the house and are they likely to agree to freeze any interest until the sale of the house?
All advice would be appreciated,
Thanks

Hi kitty

If he goes to his local Citizen's Advice Bureau they may be able to help him to find funding for the bankruptcy petition, however if he only owes £12,000 and has an interest in a property of £15,000 that would not appear to be a sensible option. I would personally write to the creditors and advise them that they will be paid in full from the inheritance as soon as the property is sold. Let's face it they cannot enforce any form of legal action against him whilst he is in prison.

Thanks Melanie,
Do you think that they would freeze the interest? Should he mention the fact that he will be going to prison in his letter?

It is worth a try, although I suspect that they will continue to charge interest as they know there is more money in the property than he owes. I would definately mention the prison sentence, as they will then understand that his affairs will be out of his hands for the duration.

Thanks for the advice Melanie.
Kitty