Where Next... bankruptcy?

purplelaurel74 · 19 November 2007 at 4:20PM

Hi All,

I'm not really sure where to start as our story goes back a year or so but here goes.....

My husband and I realised things were out of control in terms of our debt last October when I had to get cash from bank machine on credit card to pay childcare bill! Anyway we contacted National Debtline, were referred to CCCS and have been in DMP since April 07. We have a 3 bed house with over 100% secured lending on it including mortgage and loan from Picture Finance, we also have 17 other creditors with unsecured lending of around £86k. We always knew that the DMP was only short term solution as if we continue paying into this it will take us 60yrs to pay off debt! We therefore decided to put our home up for sale in order to clear majority of secured lending transfer negative equity into DMP and increase surplus to pay off debts by over £1,000 a month (a sensible option we thought) and took advice from both CCCS and Payplan who agreed this a good way forward.

Our house sale was due to go ahead last week but Picture Finance will not agree to transfer negative balance into unsecured loan thus preventing us from selling. Due to stress, my depression and the fact that this had pushed me to almost taking an overdose we decided to move out into rented accommodation so we at least felt safe from letters, calls etc.. perhaps running away you might think but we thought house sale was going ahead.

We are now stuck as to what to do next.... we can't now afford to pay mortgage, secured loan and rent so do we just stop paying and let them reposs house we have already lost our home and just need an end to all of this. To make matters worse 2 of the creditors on unsecured lending (A&L and Northern Rock) has lodged CCJs against us, A&L have interim charging order on our property which is due to be made final tomorrow in court but a charge of 3rd position on a house already in negative equity doesn't make sense, we also recieved papers from Northern Rock who through CC request full amount forewith we have applied for redetermination.

It seems that although we thought we were taking steps to face our debt head on and do the right thing - if house sale could go ahead we could pay off everything in about 6 years this isn't going to happen.

We don't know what to do next... should we petition for our own bankruptcy so at least we can see a solution, I am self employed with my own company and know that this would have an effect, also my husband works for local council so not keen on BRP as an option... CCCS don't seem to have any answers so any suggestions..... help.......

betterlatethannever · 19 November 2007 at 4:31PM

Hi Purple, and welcome.
I've not got time to reply properly now, but i'm sure some one will do soon.
In the mean time, i've asked on the bankruptcy board for some help from the good people there to this thread. The more that see this the more help you'll get.
Good luck!

Shineyhappy · 19 November 2007 at 4:33PM

If you dont want to go bankrupt then I would get your house valued for rental if you dont want to live there. If that is more than the mortgage could you rent it out and rent somewhere yourself?

If you cant sell your house and cant go bankrupt then you will either have to rent your house out or move back there I cant imagine what other option you could have.

Have you signed a rental agreement on where you are living now?

Have a look at the top sticky on this board about new posters and try and post up your statment of affairs and maybe we can advise you on a few cutbacks to make life a little easier. Also have a look at the making extra cash section of the forums.

If you want any questions on bankrupcy there is a bankrupcy subsection on this board and I am sure they are a friendly and informative bunch.

lunar · 19 November 2007 at 4:35PM

hi, welcome to mse. why dont you post your statment of affairs, a list of all your incomings and outgoings, including debt. you will get loads of support and advice on here people will just need more details to be able to advise you.

well done for posting, i know its really hard but you will find loads of people who have been where you are now, myself included.

Shineyhappy · 19 November 2007 at 4:37PM

Oh I forgot! If you are fed up of all the phone calls then you can write to your creditors asking them to contact you in writing only.

Richard_S · 19 November 2007 at 5:07PM

Hi purplelaurel74,

I've only got time for a quick post and I hate to make the solution to a complicated situation seem so simple, but the truth is, you've already put yourself in a position where getting your life back is agonisingly close.

You've accepted that the house had to go; you're living in rented property and you've exhausted just about every option open to you, short of bankruptcy. If you have a high joint income between you then you may well end up paying an IPA, but that's only for 3years and it will allow you sufficient income to enjoy a decent standard of living.

Your health is obviously suffering as a result of your financial problems and it's time to draw a thick black line under the mistakes of the past.

I work for a local authority, and they've been very supportive; my responsibilities and job description has not changed at all as a result of my bankruptcy.

Running a small business may become more difficult but certainly not impossible. The O.R will want you to continue trading in order to maximise the returns to your estate.

If you get stuck into the forms, you could be declared bankrupt well before Christmas and look forward to a new year with the mistakes of the past behind you.

Regards

Richard

hanspans · 19 November 2007 at 7:26PM

I did it on Friday and honestly, it doesn't hurt as much as you think. Post on the BK boards and then more people will respond with 'intelligent' comments. me, i am only a bystander really, and don't really know alot, so wait for the brainy bk chaps and chapesses and they will assist. anticipation is the worst.

purplelaurel74 · 19 November 2007 at 8:53PM

Thanks to those of you who have replied, I get the impression that if we petition for bankruptcy this is going to be our best option to end things and start our lives again, how do we go about this?

How does it work I understand about freezing bank accounts and stuff and that an official receiver will get involved, how public does this become? How do we continue to pay bills etc without a bank account so many questions.....

we due in court tomorrow (of which I am dreading) for creditor who kindly put a interim charge on our property 3rd charge on a property that is already in negative equity!

How do I ask advice from those of on here specifically about bankruptcy?

Any help?

debt_doctor · 19 November 2007 at 8:59PM

Hi,

Well said Richard s - you are in an overwhelming situation and BR is your lifeline to a better life

Pay your rent not your mortgage and try to save for the fees asap ( easier said than done I know )

pm me if you want to

Best

DD

purplelaurel74 · 19 November 2007 at 9:01PM

I don't understand some of the abbreviations on here! How do I pm you?

debt_doctor · 19 November 2007 at 9:04PM

To be honest if you have resigned yourself to losing the house then it does nt matter what they do BR will get rid of all your debt ( some exclusions )

You can still have a bank account but no credit facility.

Just ask whatever you want but you wouldbe much better off transfering to the BR board

Very best

DD

Where Next... bankruptcy?

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