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Bankruptcy
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My father has just turned 65 and retired, he did intend to continue working but was sacked. He is receiving about �400 a month in pensions, but owes about �30,000 on credit cards and was making repayments of about �650 previously. He also has seven years left on the mortgage (about �25,000).
In light of the amount of money he owes, his age and income, should he declare himself bankrupt? We obviously don't want to lose the family home, so should we transfer this into my name, so that he has no assets left?
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Hi. I'm sorry to hear of your fathers troubles. Ok, before you do anything go and speak to your local Citizens Advice Bureau. They'll give you loads of FREE advice and can tell you ways of reducing your debt. They'll also help you with all the paperwork if you do diside to go backrupt (be warned you do have to pay the courts to go bankrupt) I hope things turn out ok. visit www.citizensadvice.org.uk for more information.
If the house is owned or part owned by your father transferring it into your name will not work. If he then goes bankrupt the Official Receiver requires information on any property he has sold or otherwise disposed of in the last 5 years. The transfer would be looked at as having been done to put an asset beyond the reach of the creditors and the OR could undo the transfer and arrange for the house to be sold.
If he can't afford to keep up the mortgage (which is more important than paying the credit cards etc.) then - however unpalatable - it might be best to sell the house and for him then to rent accommodation. But first he needs to see if he is entitled to Pension Credit, as this could help with the mortgage costs.
He should definitely see his CAB for advice.
GO to CCCS - they are a charity for people with debts.
They are excellent and will help your father and with his creditors. The creditors know of CCCS (and in fact, the credit companies are CCCS' main source of donations) and will be a lot more helpful towards your father if they know he is seeking help/consulting with CCCS
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