Seriously considering BR now.....

Scarlett.1974 · 9 November 2007 at 7:45PM

Good evening all,

This is my first post over here, so please be gentle with me

but I've been lurking and reading the threads here for a few weeks now. Some of you might have read my sorry tale on the DFW board, but for those who haven't the brief run down is as follows:

Incomings: £1902
Outoings: £1986 (was £2879, but are now on a DMP with Payplan)
In negative equity due to:
House value - £115k approx.
Mortgage - £107k approx.
Secured loan: £40k

There's nothing else we can physically cut down any more. We're in still in a deficit each month with absolutely nothing to live on for birthdays, christmas, emergencies etc.....

The phone is ringing constantly and the letters are arriving on an alarmingly regular basis from creditors. I'm not sure I can do this any longer and the only option I can see for us to have any sort of quality of life is BR. Obviously I have some (=loads) of questions, which I was hoping some of you very clever types could answer.

1. One of our main creditors is Lloyds, so we both now have new accounts with Natwest (we have no debt with them at all) - only been open a few weeks, running well, but I assume they'll be frozen? It's been a massive hassle changing everything over to the new accounts

and I dread having to go through it again. My question is this: with H's benefit, tax credits, DLA and child benefit - can these be paid by giro as a short term measure until new accounts are up and running? My salary wouldn't be a big problem, they could pay me by cheque. On the actual days leading up to BR could we clear out the Natwest accounts of any monies in them?

2. We have resigned ourselves to losing the house. I have lots of questions about this! How do we go about 'handing it back', so to speak? Would we be better to arrange rented accomodation asap and walk away or wait until the BR is done and dusted? Obviously we couldn't afford to pay the secured borrowings as well as rent, so if we rented asap would we just stop paying the mortgage and secured loan? How exactly does repossession work?

3. H has finance on his car. He put down his old car as deposit, which they 'gave him' £3k for, the car we have now was £8k, so £5k of finance. We don't own this car obviously, so it wouldn't be an asset as such would it? Would we be allowed to continue making the finance payments and keep the car? We've had it since April, so probably still owe £4k approx.

I have SO many questions and I know I need to get professional advice (plan on calling CCCS or National Debtline on Monday morning, any opinions on which is best?) but I hope you don't mind me posting some of them here.

Many thanks for reading, sorry I've gone on so much, I do waffle rather, sorry about that. It's just that it's such a massive thing and I really don't know where to start.......

Scarlett xxx

simplesibbo · 9 November 2007 at 8:09PM

Hi

The CCCS were very helpful with my case and I know that the CAB are very good too. It is a scary situation, but it's amazing how much better it is when you confront it and take control over it - I would avise you to phone them (CCCS/CAB ) tonight and get the ball rolling.

I can't help with your first point - others will be able to - they're great on here - but, in my experience the repossession is a lot less painful than you might think - once you've got your head around losing your place. They give you lots of time; I had over 6 months and handed it over voluntarily in the end as it took so long...

Negotiate over the car - they let me keep mime as I needed it to get to work, but I owned it outright - and it was worth very little! But you will need your own car for work...

I remember the phone calls, letters, threats etc very clearly - it gets A LOT better once you make that phone call and the decision to go BR

Good luck, hope this helps

Scarlett.1974 · 9 November 2007 at 8:19PM

Hi simplesibbo,

Thanks for your reply

and advice, it's much appreciated. The thing with the car is, I'm not sure if we can prove that we need it, you see. H isn't working at the moment due to ill health and I work from home. We'd obviously really miss it if it had to go, it's the convenience of it isn't it? The only thing it would cause a big problem for is H collects his son from school on Friday afternoons and we have him overnight and then H takes him home on Saturday evenings. Son's school and home is approx. 25 miles away, so not really local and public transport would be very difficult - but I'm guessing that wouldn't be reason enough for the OR to allow us to keep it?

Thanks again xx

Scarlett.1974 · 9 November 2007 at 8:41PM

Have just thought of another question! You know when you have to do your I&E for the OR, well, do you have to include any non-guaranteed income? What I mean is, we ebay a LOT of stuff and I'm not sure when that's going to stop, we seem to have so much stuff! Also, I do Avon, which brings in a few extra £££ a month, but it's not a set amount, or even guaranteed because I never know how much I might make from each campaign to the next.

Thank you

Scarlett.1974 · 9 November 2007 at 8:51PM

Oooops, thought of another question, sorry. I keep reading about IPAs and surplus income etc.... and I understand that if your surplus is £100 or less then you don't have to an IPA - well, what about if there's 2 of you, as H and I will be doing this jointly? Would we be 'allowed' £200 per month then? And is this amount set whether you have children or not? Do you get extra things that you're allowed to include in your I&E when you have children?

I'm so sorry for all the questions, it's like the floodgates have opened now!

Scarlett xx

tigerfeet2006 · 9 November 2007 at 10:18PM

Hi and welcome to the BR and living with it board. The first thing you have to do is speak to one of the debt charities. You will be asked if you have taken professional advice so it is best to do this at the outset (see my siggy).

Houses are complecated but if you are going to loose it then it would probably be best to rent before BR but someone with more knowledge about houses will tell you about it,

The car I think you will loose it but again not sure about the whys and wherefores.

You will each submit a BR petition and pay 2 fees :eek: . Then the household bills are split between the two. If you both have a surplus of more than £100 then you both pay an IPA. If one of you have a surplus then they pay an IPA. If neither has a surplus then neither pay.

The Ebay stuff you don't have to declare as it is your own stuff you are selling. Not sure about the Avon thing.

Sorry I've not been much help but someone will be along with more knowledge.

tigerfeet2006 · 9 November 2007 at 10:20PM

Oh! and don't worry about asking lots of questions, we will try and help and support you as much as we can.

Scarlett.1974 · 9 November 2007 at 10:29PM

Hi tigerfeet, thanks for the welcome

So, even though we're doing this together, am I right to assume that we each do our own forms individually, with our own individual I&E? 2 lots of fees - ouch, but I thought this would be the case. Hmmm, wonder if H will have to pay the full whack though, he is on Invalidity Benefit? With me receiving working and children's tax credit I'm paying the majority of all the household bills at the moment, so would we split them pro-rata then and not 50/50?

Thanks for your time

I'm off to bed now, I'm a very early riser! So, I'll be back in the morning to check if there's any more replies - I'll probably have another load of questions then too!

Thanks again,
Scarlett xx

tigerfeet2006 · 9 November 2007 at 11:17PM

Scarlett.1974 wrote: »

Hi tigerfeet, thanks for the welcome

So, even though we're doing this together, am I right to assume that we each do our own forms individually, with our own individual I&E? Yep! fraid so 2 lots of fees - ouch Ouch! indeed!!, but I thought this would be the case. Hmmm, wonder if H will have to pay the full whack though, he is on Invalidity Benefit? Probably not(someone will give you the link to the relevant form so you don't have to pay the court fees of £150) With me receiving working and children's tax credit I'm paying the majority of all the household bills at the moment If you are not working or are on a low income then you may be exempt as well, so would we split them pro-rata then and not 50/50? Yes you would do the bills pro rata

Thanks for your time No problem. Know what it's like. We're trying to save at the moment for the fee's, only problem is we've had emergancy after emergancy and keep having to dip into the savings :rolleyes:

I'm off to bed now, I'm a very early riser! So, I'll be back in the morning to check if there's any more replies - I'll probably have another load of questions then too! Sleep well and keep your chin up!

Thanks again,
Scarlett xx

There's usually someone around who knows the answer to most questions or who can point you in the right direction so keep posting.

Scarlett.1974 · 10 November 2007 at 6:10AM

Thank you tigerfeet (see, I told you I was an early riser!)

I am working, so I guess I'll have to pay all of my fees? Isn't it ironic that it's people who are drowning in debt who go BR, but it's SO blooming expensive to actually do it?! :rolleyes:

I really do appreciate your warm welcome and I definitely will stick around and keep posting

tigerfeet2006 · 10 November 2007 at 11:30AM

Cor! that is early!!:D

I was lucky I got a lay in today cuddled in with the baby. The middle one is ill and didn't wake until 9.15 and is now cuddled up with Dad eating toast and the eldest is playing trains while I get some me time on the computer wahey!!!!

Your right about the fee's though they are a pain. We had got up to £500 but it was my Nan's 90th Birthday and we had to go down to Cornwall for her party and 2 nights in a B&B is pricey. Then our freezer went, then the dishwasher, then the tumble drier :eek:. Now the boys need new shoes, new coats and the eldest needs new clothes :eek: So we are down to £300 again :mad: We have decided that as soon as we have the fee's DH will go BR then we will save for me rather than try together or we will never get the fees together.

Have a good day.

Seriously considering BR now.....

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