BR Noob

Lensman_2 · 12 December 2008 at 8:53PM

Hi Everyone.

Just wanted to say hi before I get in to a load of questions about BR.

To introduce myself...
My actual name is Jim. 46 and living in Southampton. I am an engineer with a career in lens making (hence the name). Nearly two years ago, my finances were heavy on the debt but sustainable and all paid up - religiously. I was buying the flat in Plymouth where I worked.

Just over 2 years ago, we got notice of redundancy - the factory was closing and being shipped abroad. I could have stayed with the flat but wouldn't have got a wage that would sustain repayments. And have had to stay miles away from family and friends.

What I chose was a job offer in Southampton. Nearer to "home" and better money than I could have hoped for in Plymouth.

I was then faced with rent, mortgage and debt repayments that I had no hope of meeting. I presented this to my bank (who had my CC, OD, Loan and Mortgage) with a plea for help. They couldn't... Apparently I couldn't afford a restructure which saw my payments go down £500 a month. :mad:

Long story short - the loans have defaulted and are now with a DCA.
I stopped paying the mortgage 4 months ago when I ran out of stuff to sell. The account is now with a solicitor. It has (I guess) 30k of negative equity plus arrears and costs.
All up -it will be about £60-70k.

Today's question was going to be - their solicitor advised me today to go to a branch and sign a "hand the keys back" type form. Do I do this? I have now done enough reading here to know that the answer is - no, I don't.

The job here is likely to go abroad too in the next few years and with it the demand for lens making engineers will virtually dissappear. With it will go 50% of my salary potential.

So I think Bankruptcy is my only option. I am here because I have started finding out what it's about.

Nice to meet you all. Specially Scarlett_1974 and loopy_lou1. I have read through both your threads. Deep respect to both of you.

Jim

P.S. I should say that the plan was to sell the flat in Plymouth and buy up here but the timing was wrong and I couldn't sell for enough to clear the mortgage.

copier_guy · 12 December 2008 at 8:57PM

Hi Jim,

I am a newbie here to and looking to go BR next year, in fact i have just paid my last mortgage payment so all being well The Chelsea will start proceedings in Feb/March.

Good Luck

lisamummytoarchieplusbump · 12 December 2008 at 9:09PM

hello to you both. my names lisa and im going br on thursday

oh i felt like i was in a AA meeting then. but this group is just as good you will find lots of support, advice and friendly banter. ive only been coming on this forum about 2 months and its helped me so much.

welcome again

lisa

DON79 · 12 December 2008 at 9:24PM

Hi Jim, welcome.

I'm Donna. Sorry to hear how things have gone.

But you have come to a good place, the people on here are sooo helpful.

Have you called the cccs or national debtline already? Or you could do the cccs debt remedy online?

What do you need to know about going BR? Fire away with the questions and we will do our best to help out.

Donna

edit - definitely do not sign anything when handing the keys back, they try to get you to admit liability which is not right and not what you want to do if you are going BR.

Lensman_2 · 12 December 2008 at 11:01PM

DON79 wrote: »

Hi Jim, welcome.

Have you called the cccs or national debtline already? Or you could do the cccs debt remedy online?

No, not yet.

I did go to Citizen's Advice. I got an ex financial adviser there who told me that if he was in my situation, he would go BR.

Thanks for the welcome.

So_Sad_Angel · 12 December 2008 at 11:11PM

Hi Lensman,

Get a second opinion....always!!! NAt Debtline / CCCS

If Br is the way forward then post an SOA of your income & expenditure & we can tweek to ensure that it fits the bill.

Anyway...welcome to the `rollercoaster`...try & enjoy the ride!!!!!

Angexx

DON79 · 12 December 2008 at 11:28PM

cccs and national debtline numbers are in the sticky's at the top of the forum.

Although as long as you have taken advice and you understand the implications of BR, you don't have to take further advice Just read all you can about going BR and then start it off with completing the forms, saving for the fees, asking the questions etc

Lensman_2 · 12 December 2008 at 11:42PM

So_Sad_Angel wrote: »

Hi Lensman,

Get a second opinion....always!!! NAt Debtline / CCCS

If Br is the way forward then post an SOA of your income & expenditure & we can tweek to ensure that it fits the bill.

Anyway...welcome to the `rollercoaster`...try & enjoy the ride!!!!!

Angexx

OK. Will get a second opinion. Thanks.
Is a SOA a Statement of Affairs and how do I get one? I've seen them posted...

How far back will the OR go in his investigation? I have only got an overdraft of £1200 since I got notice of redundancy 2 years ago, nothing else. Will he want to go back 3-5 years on CC spending?

TIA
Jim

DON79 · 12 December 2008 at 11:47PM

if you go to www.makesenseofcards.co.uk you can do an soa on there and it lets you format it for MSE so you can copy and paste it onto here.

Generally the OR seems to go back two years but he can go back as far as he thinks is necessary.

Lensman_2 · 13 December 2008 at 9:27AM

OK.

CCCS are closed but I did the online thing and have my number.

Here is my SoA. Forgive me for the XXXs on income, but you can see the total still. (I included mortgage, although I have stopped paying it).

Although it might look like I can afford my debts, once the bill for the flat comes in I will have a massive sum to pay and little job security after a couple of years.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ XXXX
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ XXXX
Total monthly income.................... 2553

Monthly Expense Details
Mortgage................................ 795
Secured loan repayments................. 0
Rent.................................... 695
Management charge (leasehold property).. 62
Council tax............................. 105
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 20
TV Licence.............................. 16
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 7
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 10
Emergency fund.......................... 25
Total monthly expenses.................. 2435

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 86000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 122500...(795)......6
Total secured debts........... 122500....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
P Loan.........................16500.....200.......0
CC.............................9500......200.......0
Barclays Partner...............800.......42........30
Total unsecured debts..........26800.....442.......-

Monthly Budget Summary
Total monthly income.................... 2,553
Expenses (including secured debts)...... 2,435
Available for debt repayments........... 118
Monthly UNsecured debt repayments....... 442
Surplus(deficit if negative)............ -324

Personal Balance Sheet Summary
Total assets (things you own)........... 86,000
Total Secured debt...................... -122,500
Total Unsecured debt.................... -26,800
Net Assets.............................. -63,300

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

copier_guy · 13 December 2008 at 9:36AM

Hi Lensman,

paying both the mortgage and rent is killing you finances!!

Hope you get sorted

BR Noob

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