bankrupycy

[66angelmum]

can anyone tell me if i will lose my landline internet and computer if i declare myself bankrupt?
my children use the internet for schoolwork etc.
also, what will happen to a joint bank loan that i took out with my ex. i had all the money from the loan and have made all the payments so far (nearly half way thru term)
will the bank chase him for the money and if so will he be able to claim it back from me. he stopped paying maintenance which is the cause of my financial situation.
all help appreciated.

[Mumof2]

Bankruptcy is the last resort for peoples debt problems so the best thing is to have a look at this link...from the CAB and decide which option is for you

http://www.adviceguide.org.uk/index/life/debt/ help_with_debt.htm

[Prudentia]

read all the platitudes, then bin them, there is no help whatsoever, approach the government and you will have your past records examined in fine detail and be billed for the slightest amount outstanding

[themas]

1. If you owe any money at all on the landline at the date you go bankrupt then the account becomes a debt in the bankruptcy & you will almost certainly lose it. You need to make absolutely sure you don't owe anything by making an advance payment (which needs to cover any line rent due as well as calls) just before going bankrupt. Even then, the Official Receiver will almost certainly notify the phone service provider that you are bankrupt, & the provider may then decide to cancel the contract. This used to be the situation with BT, but I don't know whether it still applies.

2. Your internet connection is presumably broadband. Again, make sure payments are in advance before going bankrupt. Normally, the cost of broadband is not allowed by the Official Receiver as necessary expenditure. You would, if necessary, have to argue your case with him based on the use that is made of it. However, as far as the cost is concerned it could be regarded as coming out of your �surplus� income if you have to make any payments to your creditors. The same problem may arise as with the landline � i.e. the provider may decide to cancel the contract.

3. Assuming the computer was not extremely costly and nearly new, it will not be taken because it would have no significant value.

4. Your liability for the joint loan would be included in the bankruptcy; the creditor would continue to pursue your ex, who is jointly and severally liable with you for the whole of the debt. If your ex wanted to claim it back from you on the basis that you had had the money he would have to go to Court to try and get a CCJ. I don�t know whether he would succeed � it seems to me unlikely because there is (I assume) no evidence that you agreed to be liable to him for the debt, and your legal liability has been wiped out by the bankruptcy.

[66angelmum]

thanks themas, and others. great help.
i know wanting to keep internet and phone seems a trivial thing with such debts, but my children need a form of communication when at home and i am at work and as i said, they use the internet for homework. i had a mobile but several months ago, i got rid of it and got a package from sky with tv, phone and broadband for the same price as my mobile contract. it was more beneficial for the children and is not costing any more than the mobile used to cost. a friend told me that a mobile contract would be ok to keep after bankruptcy as it is a form of contact so i am hoping that as it is the same price, i may be able to keep the sky package instead.

[themas]

You may be lucky if you can show the total cost is similar to what you were paying for just a phone.

But I don't think your friend was right about mobile contracts. I think these are often cancelled and you have to have pay as you go instead.

[66angelmum]

thanks for the help. i have found out that generally household possessions are not taken as assets unless they have high value(which none of mine do) and like you said themas, i will be ok with my sky package as it is the same value as my mobile contract. they allow an amount of approx �50 for phones and mine is less. you are probably right about a contract mobile. fortunately mine is cancelled now anyway. thanks again.