Going To Court This Week

snake666 · 23 May 2005 at 8:20PM

my wife and i live in a 1 bed flat worth about 145k on the market but not going to sell fast enough
my debts are
c/c 15.5k
c/c 5.5k
c/c 3k
c/c 2k
loan 18k

joint o/drafts 11k
joint loans 49k

wifes debts are
c/c 3k
c/c 1k
c/c 3k
store cards 2.5k
loan 13k

mortage 89k

so total is around 225k

we bring in about 2.7k-3k a month
but with just these debts its 3k plus a month without fuel,bills,phones,food,clothes,etc
lucky for us we have no kids only a cat

some have refurred payment for 3-6 months but as im in the building game and at the moment not working this is the only option
we have talked to the bank and even they said this was the best route to go down as iva,s are not all that as we might still lose the house in 4-5 years

we have opened a basic bank account with a different branch which gives us a cash point card only so that will help for a start

ok that a bit of background
heres what i need to know now

1/we are going to rent will this be a problem for about 700-750 a month

2/when im working again how much will be paid out of my wages and for how long

3/when do i need to ring or talk to the OR and when will they start taking stuff from our home

4/will they still leave us stuff like a tv,bed,cds,etc

any help please
thanks
snake

trace-j · 23 May 2005 at 8:49PM

Snake

This is serious stuff and doubt anyone will want to offer any advice.

If you're going to court it means things have gone on long enough already and all other negotiations have ceased. Have you been to the CAB or anybody else who can offer debt advice?

With regards to repossession, they will take anything that you own that has some value. If its not there, they cant take it.

Seriously get some legal assistance.

Good luck.

ceegee · 23 May 2005 at 8:57PM

Snake.....Can't offer any help myself as never been in this situation. But certainly there are people here who have been bankrupt and will be able to answer your questions. I am sure they will be along soon! :cool:

bonnie_2 · 23 May 2005 at 10:14PM

it is beyond belief that someone can run up debts this high, im not easily shocked but i am this time.i think your best bet is to go bankrupt but you will almost certainly lose your house and any assets which you must have on those debts.look into it carefully though because it is hard to rent privately if you are bankrupt.the sooner the government get their act togethter the better, this is irresponsible lending at its worst.

idiot_3 · 23 May 2005 at 10:22PM

without wanting to judge, how did you get hold of so much credit, and where has it all gone? could you not sell some assets to keep the wolf from the door, or has it gone too far for that?

gravitytolls · 23 May 2005 at 10:31PM

bloody hell mate, it sure makes me realise how lucky I am to have gotten a grip of it, before I was in it's grip.

You need to talk to an expert. Surely no financial institution should have allowed this amount of credit to accrue - is there a case for irresponsible lending against those lenders.

Get your housing sorted before you go bankrupt, good luck and do let us know how you get on. Your experience and advice will be invaluable to others in a desperate situation.

It's going to be tough, of course, but once you get it sorted, at least it'll be a weight off your mind.

Prayers with you pet.

Xbigman · 23 May 2005 at 10:32PM

Firstly don't panic about not having any money to live on, the OR isn't going to leave you on the streets. The OR only takes things that are valuable to resell. This eliminates almost all general household goods. If you have expensive jewelry or a 42" plasma screen tv they might be exceptions.

When you go to court, you're seeing the OR is organized then. You need to list all your assetts. Cars are a favourite target. Your house is a target if you have a lot of equity but you usually don't lose the house if it is roughly equity neutral. If you have debts secured on the house (mortgage, loans) and you can afford to pay them it is possible to keep the house.

You don't say but I assume its you *and* your wife going bankrupt? If she isn't then all joint debts will be shifted solely to her name.

Have you seen one of the free debt counselling services? CAB, CCCS, etc. If you haven't then the court will direct you to one of them before you go bankrupt. If you haven't then that is your next stop, not the court.

Ignore any comments by your bank with regards to bankruptcy. The reason they are not interested in you anymore is that you can't pay their exorbitant interest and charges now.
Good luck.

X

Xbigman · 23 May 2005 at 10:37PM

gravitytolls wrote:

Get your housing sorted before you go bankrupt...

No don't. If the creditors want to take the house it will take at least 2 months and sometimes over 6 to get possession. That could be 6 months rent and mortgage free for you and your wife.
Regards

X

gravitytolls · 23 May 2005 at 10:42PM

Xbigman wrote:

No don't. If the creditors want to take the house it will take at least 2 months and sometimes over 6 to get possession. That could be 6 months rent and mortgage free for you and your wife.
Regards

X

good idea. my apologies, I was just thinking of the previous posters concern about adverse credit affecting potential landlords decision.

But yes, all that time waiting could amass a tidy sum to help them on the road to recovery.

Debt_Free_Chick · 24 May 2005 at 6:08AM

snake666 wrote:

heres what i need to know now

1/we are going to rent will this be a problem for about 700-750 a month

2/when im working again how much will be paid out of my wages and for how long

3/when do i need to ring or talk to the OR and when will they start taking stuff from our home

4/will they still leave us stuff like a tv,bed,cds,etc

any help please
thanks
snake

You're going bankrupt, right?

First off .... take cash out of your bank account to cover food, bills etc. The OR will probably not freeze your new account, but take out cash just in case.

Your questions ...

1. Some landlords won't touch a bankrupt, others are fine. Start looking around. When you go to Court, look for adverts from landlords who rent to bankrupts. And ask CAB too. You should find something suitable, but it may take a while. Try not to commit to move in just yet ...

2. The OR will only want money from you if you have some left over after paying for your rent, council tax, bills & food. So do a budget NOW. Make sure you know how much money you will actually need. The OR will ask to see this.

The OR may tell you that they'll take a certain percentage of everything you earn, above the amount you need to live on. Let's say your budget shows you need £1500 each month. The OR may say that they want 50% of everything you earn over that amount. This will probably last for 12 months (it could be 3 years, but you usually have to earn more than average to end up with an income payments arrangement that lasts that long).

3. You'll be advised by the Clerk to the Court about this. You may have to go the OR's office right away, so take your budget and details of all your debts with you. You may be sent home and told to wait for a phone call.

4. Yes. You will be left normal household goods i.e. the things you need to live. The OR is only interested in goods they can take and then sell. Second hand furniture does not fetch a high enough price for it to be worth the trouble to take it & re-sell. Don't worry about normal goods.

Good luck. Don't worry. The Court & the OR will be understanding. You will get your life back. I only hope that you never touch debt again. Try the Money Saving Old Style Board for ways to live within a budget. You'll get plenty of help there.

Let us know how you get on. Your experience could be useful to others.

gravitytolls · 25 May 2005 at 12:50PM

contact your local council, they may be able to hlp regards housing. They won't do anything until your home has been sold/repossessed, but they won't see you on the streets.

Going To Court This Week

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free