Author Topic: new bankruptcy rules???  (Read 1316 times)

louise

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new bankruptcy rules???
« on: Feb 10, 2011, 06:59:38 PM »
Hi, i have just spoke to a debt advisor who has said my only way out is bankruptcy, i am a single parent with my own home he said there are new rules for jan this year that mean you don't lose your house and that your debts are attached to the house and if i sell later then they will get their money back, is this right?
 
I owe money to EVERYONE, credit card, loans, payday loans, a repossesed car, catologue, bank charges, council tax mortgage arrears, secured loan arrears, gas, electirc, water, tv licence, vet, mobile phone there are probably more.
 
It all started becuse i have a mental health problem part of which involves over spending once i got my first charges i coudln't pay i got more couldn't pay got more etc etc then it just spirelled, i hit a major depressive phase which meant i couldn't deal with anything so i ignored it all and it's just spiralled even to the point of considering suicide.
 
I'm now in a dire situation considering going bankrupt but i desperatly want to stay in the house even if it's only for a couple of years before the order to sell the house comes in.
 
Are there new rules meaning i wouldn't have to move?

James Falla

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Re: new bankruptcy rules???
« Reply #1 on: Feb 23, 2011, 11:21:55 AM »
Hi there Louise
 
It is right that new rules have been introduced regarding property and bankrutpcy but I think that the person you spoke to confused you a bit.  The changes are as follows:
 
If after you declare bankrutpcy there is any equity in your property but you can not afford to make an offer to buy this back from the OR, the the receiver must keep the title to your property for at least 2 years and 3 months. After that the equity will be re-assessed.
 
At that time, if the equity is less than £1000 you will be given back your property and your debts written off. If the equity is more than £1000, you must by back the title. If you can not afford to do so, the receiver has the option of either selling the property to release the equity or handing back the property to you but taking out a chargig order against the property for the value of the equity at that time.
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