Topic: Bankruptcy

[tinkerbell]

After divorcing my husband after him having an affair I was left with the house and my three children.  I struggled to keep the house and used credit cards to help me through.  I sold the house 3 years ago and paid off the mortgage in full and some of the credit debt.  I have now moved with a new partner who owns his house but I still have debt of £17000 and am struggling.  I want a fresh start in life and am considering bankruptcy after speaking with CBA.  I only own a car worth £700 and no other assests.  Can you see a problem with this?

[Steven Jackson]

Hi Tinkerbell
 
The only concern would be whether you could be considered as having any interest in your partner's house. If you have only been there a short while and have never made payments towards the mortgage or the other household bills, this should not be a problem.
 
Can you let us know how long you have been living with your partner and how you arrange your finances. ie do you keep everything seperate and in effect live rent free or do you contribute in any way?

[tinkerbell]

Hi Steven
 
Thank you for your reply.  It is such a worrying time.  I pay the household bills and my partner pays for the house which is in his name only.  We agreed this as I have three children and at the moment I could not possibly rent anywhere due to my financial circumstances.  He is self employed and our monies are kept separate.

[Steven Jackson]

How long have you been living in your partner's house Tinkerbell? From what you are saying I think it will be unlikely that you have any claim to the house at all but if you have been paying the household bils for a number of years, there could be a claim there. This is vital to understand before you consider a bankrupty procedure.
 
A good frind of mine works as a bankruptcy official reciver so if you can give me the above info, I can get pretty definitive answer for you.

[tinkerbell]

I have been living with my new partner in his house for 2 and a bit years.  I do not want any claim to the house as it is his and think I am fortunate that someone has taken me and my three in.  I could not afford to rent anywhere whilst I have all these debts.  I have an appointment with the court next Tuesday to take in my papers and the £600 fee.  I feel doing an IVA will tie me up for another 5 years and I have already been tied up with money since 2002.  I just want a break.  I do not claim any working tax credit or any other benefits.  I have one just left school, one at university and one about to leave the country to live abroad.

[tinkerbell]

Incidently as well as my partner providing the house he also pays towards the household bills.

[Steven Jackson]

Hi Tinkerbell
 
I have had a chat with my official receiver friend and they have said that there should be absolutely no problem for you to declare bankruptcy without affecting your partner's property in any way. If you have lived there for just two and a half years and simply made contributions to the household bills then there should be no issue at all.
 
When you speak to the official receiver, they will probably want to ask you about the property but given that it was your partner's long before you met or moved in and you have not paid for any improvements or towards the mortgage, there will be no question of you having any interest in it.
 
In the light of this and from what you have said about your circumstances, I think bankruptcy is the right solution for you.
 
Good luck for next Tuesday and let us know how it goes.

[tinkerbell]

Hi Steven
 
Thank you so much for your advice it is much appreciated.  You feel so alone and scared when in debt.  I think going bankrupt would be best too and I never want credit again!  I am apprehensive about going to the courts as I feel out of my depth and scared what they will say to me.
 
Anyway thank you so much and I will let you know how I get on.
 
Many thanks.

[tinkerbell]

Steven
 
Just another question can they turn round and say no you cannot go bankrupt?
 
Many thanks just want to be clear on things before I go.

[Steven Jackson]

As long as you have completed your statement of affairs document properly and you are truely insolvent (which I assume you are) then the court will not prevent you going bankrupt.
 
I know it is scary but in actual fact, once you have gone through the bankruptcy process you will breath a huge sigh of relief as all the weight of your debts will be taken away from you.
 
Generally speaking the process is much less scary than you think it will be. Very often the visit to the court is simple and you many not even see a district judge. Generally your meeting with the OR will be on another day but over the telephone. You can read more about what to expect here: http://www.beatmydebt.com/bankruptcy/how_am_I_declared_bankrupt.htm

[tinkerbell]

Steven
 
Thank you for all your advice.  I only thought about contacting a forum this week wish I had done it sooner!
 
To anyone reading this I feel so much better and not alone.
 
The forms for completing bankruptcy are lengthy but I feel I have included every outgoing expenditure and when you do this you realise there is not a lot left.
 
Steven am I allowed to help out my daughter who attends University?

[Steven Jackson]

Hi Tinkerbell
 
I am very pleased that we have been able to help. Unortunately I do not think the official receiver (OR) will allow you to actually include a payment to your daughter at university in your expenses. However, once you have agreed your expenditures, there is nothing to stop you using some of your money to pay to your daughter. It is just you might be left short in other areas. However, this is a choice that you can make if you wish.

[tinkerbell]

Steven
 
Thank you for your help.  I have just been checking over my forms and will let you know how I get on tomorrow.
 
Once again, thanks for your help.

[Steven Jackson]

Good luck Tinkerbell
 
I am sure it will all be fine. I look forward to hearing how things go.

[tinkerbell]

Steven
 
I went to court today and handed in my papers, not a very nice thing to have to do but the clerk was nice and helpful.  I have to go back tomorrow to see a judge and then speak to an OR tomorrow over the phone at court.  I did find it emotional but think a big lesson will have to be learnt from using credit!  I will let you know how I get on tomorrow.
 
Many thanks.
 
Tinkerbell