Seriously considering bankruptcy as our only option

[queen]

Hi,

It is looking like bankruptcy in the UK is our only option at the moment unfortunately. I would love some help on really basic questions - I was looking for FAQs but couldn't find any.

Do you need to have been a business owner to apply for bankruptcy or can any Joe Soap apply?
Do both people in a marriage need to apply for bankruptcy if the debts are in both names?
Is there a minimum amount before you can apply for bankruptcy - we will be around 100-150k euro. (I have seen posts mentioning over 4 & 5 million.)


Also some general info on my/our situation.
Our home is worth a third of what our mortgage is. At the moment we are about 3 years in arrears. We would be pretty high on the list for repossession (in spite of having paid mortgage for past 18 months) because we are just not able to catch up. Our mortgage has already been given to an external collection agency to expedite recovery of the debt.
Although husband is working, there is a lot of uncertainty in his job, and they are trying to reduce him to a 3 or 4 day week.
I really can't see us lasting another year in this house. And living like this is torture.

 

[Dr.Debt]

1. Joe Soap can petition for bankruptcy. Doesn't need to be a business
2.Both persons do not need to apply for the bankruptcy where there are joint assets however in cases where one married partner enters bankruptcy, his share of the jointly held assets is vested in the Official Assignee (Court Appointee)
3. The minimum amount for bankruptcy in Ireland is 20,000. In UK, it may be even less.

In your case I would look for an option under the new Insolvency Act.

If you go for UK bankruptcy, you will need to go and live in the UK which would probably mean that your husband would need to give up his job

 

[queen]

The Insolvency Act doesn't really suit us - as we don't want to keep the house for a number of reason.
1 - the house is a third of of market value
2 - it needs 25k to be put into it very soon.
3 - we don't want to stay in our house (the garage last night was very nearly burnt down last night, because someone mistook our house for the druggie next door who owes money). We have some very serious neighbour problems.
4 - we have an inheritance coming though in about 5/10 years, the family home for the past 150 years. The house isn't worth a lot - it will be the same as our debts are at the moment, but it is really important that stays in the family.

Finally - going to England is not a problem, both of us have lived there before (him recently). His job is a shade above minimum wage - and I am sure that he could get it back in a few years as long as he leave in the correct manner.

 

[queen]

1
2.Both persons do not need to apply for the bankruptcy where there are joint assets however in cases where one married partner enters bankruptcy, his share of the jointly held assets is vested in the Official Assignee (Court Appointee)

Can the creditors come after the 'un-bankrupt' for the remainder of the assets?

 

[Dr.Debt]

If the house is in both names and ONLY your husband goes bankrupt then your husbands creditors (via the Official receiver) will be entitled to any value in his half of the house. If there is no value in his half of the house then the Official Receiver will simply ignore it and let the bank act. If your husband goes bankrupt and the house is in negative equity, then you as the wife will become responsible to the bank for the full loan on the house.

The official Receiver will be entitled to take all other assets owned solely by your husband and half of any assets held jointly. Personal effects up to a value of 6000 will be largely ignored.