Author Topic: looks like bankruptcy the only option !  (Read 982 times)

cocogizmos

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looks like bankruptcy the only option !
« on: Mar 27, 2012, 04:49:37 PM »
 Hi there everyone. I very much hope you can maybe give me some help and advice as I am actively but reluctantly considering bankruptcy for myself.
Brief background is that I am a late 50s senior executive who was made redundant over two years ago and been unable to find any permanent salaried work since despite the job applications count now standing at over 500.
I am married to a very supportive wife who works part time (25 hours pw) as a teaching assistant. My 17yo son who is studying at a local sixth form college lives at home in our modest two bed flat. We have three other older children who we have helped over the recent past with their debts etc due to the on-going  financial environment.
I have unsecured credit card debts in my name of circa £40k with four creditors which now have default status and I currently have informal arrangements with each for a six month term which expires soon. These payments account for some £150 per month which we are now struggling to pay. I have gone from years of a proud 999 credit rating to something around 400 upon the last look at Experian,
I have income from company pensions that were cashed in early and with my wife’s wages and child benefit we have net monthly income of circa £2100 net.  Our normal outgoings however are frequently out stripping  this despite a modest lifestyle and having made expenditure economies.Having looked carefully at the options and having spoken with the local CAB I think bankruptcy seems the unpalatable but realistic and logical option.
We have a mortgage of £225k on a property worth in the region of £250k based on recent sales of similar properties. My mortgage is a not too imposing interest only £480 pm and service charge and ground rents of £120pm. We have no arrears on any of these nor with utility suppliers and council tax. We have never missed a mortgage payment in over 30 years. We have no CCJs.
My wife has a personal loan and finance on a car that she uses for work that she pays from her salary and she does not wish to become BR. All her payments are up to date.
I have several questions if I may :-
1.       Am I able to declare myself bankrupt but not my wife?
2.       What happens to her share of the house if it were to be sold as a result of my BR. Is it protected? How quickly does it have to be sold?
3.       We have a joint current account with NatWest that we have had for over 30 years but two of the largest CC debts are with NatWest also. We do not currently have any overdraft debt but have a provision for £1500 if needed. Will we have to close the joint account after BR for me is declared?
4.       Should we then open two separate bank accounts ahead of starting BR proceedings for me?
Any thoughts advice or observations would be very welcome.
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James Falla

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Re: looks like bankruptcy the only option !
« Reply #1 on: Apr 02, 2012, 07:34:44 PM »
Hi there cocogizmos
 
Sorry to hear about your situation. In answer to your questions:
 
1 - Yes, you can declare yourself bankrupt individually and your wife does not have to be involved.
2 - If the property were to be sold then your wife's half of any equity would be her's to keep. In order to get the best value for the property, if the OR wants you to sell the house and you are cooperative, then there would probably be no need to force a sale and you should get full market value.
3 - Re the joint bank acount, the best thing to do would be to take your name off the account. Your wife could then continue to use it if you go bankrupt. If the CC debts are in your name, she would not be liable for these and the bank account would then be safe.
4 - You can open a new bank account ahead of the bankruptcy. This is generally the preferable option.
 
Please let me know if I can be of any further assistance.
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beatmydebt.com