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Bankruptcy pending - I want to stop it - please help

(6 Posts)
funnykc Wed 09-Jul-08 22:11:18

Hi,

County Council are trying to make me bankrupt. Arrears are £2.5K over past 2/3 years.
Basically split from exh 2 years ago and he left me in a ton of debt. Mortgage arrears/electricity and water debts aswell. Tried to get mortgage in my name but he fought for his share for so long that mortgage company withdrew offer when the markets started to wobble. So I put house on market in September last year. Still not sold...... but exh has agreed to hand all equity to me.

I have explained this in numerous letters to council (and said I am single with 5 year old) that I have been unable to make a payment but that debt would be paid when house sold.

I have made an offer to pay and asked them to consider a charging order and the response I got was that 'once the bankruptcy petition is issued it cannot be withdrawn without the leave of court and leave will not be given before the petition is heard'

Is this true?

Any experiences will be gratefully received as this is really starting to stress me out.

Thanks

kc xx

funnykc Thu 10-Jul-08 08:03:38

shameless bump

DaphneDescends Thu 10-Jul-08 08:07:06

Have you looked at moneysavingexpert.com? They have a bankruptcy forum, one of the experts will be able to help you, I'm sure... see here

WingsofaAngel Thu 10-Jul-08 08:10:24

Even if you went to court I think the judge can have it withdrawn. I'm not certain. Have a look at National Debt helpline too.

lou031205 Thu 10-Jul-08 08:14:51

Yes, the judge can order that the petition is set aside and put a charging order on instead. You really need to go to the CAB, because if the bankruptcy goes ahead, as I am sure you realise, any proceeds from the house, even if clearing all your debt and leaving a profit, will go to the official receiver.

I hope that you can get some help and advice before your court date.

funnykc Thu 10-Jul-08 08:29:54

Thanks for details on the bankruptcy forum - I have just posted.

I spoke to national debt line and they said that the letter suggests that the council want me to attend the hearing regardless.

The wording in the letter from the council is vague - ish (not really surprised) in that they have had a case in which the bankruptcy petition was stopped and replaced with a charging order.

My concern is that this won't happen for me and that I will lose the house/equity.

CAB next...

Thanks xx

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