Br Heeeeeeeeelllllllllllllppppp!!

hally01

Hi,

This is my first thread, so any help would be much appreciated.

I'll start with the facts:

Married combined unsecured debt approx £60k and counting
Mortgaged to £149 flat valued at the same
Living in rented accommodation and flat has a tennant
Salary has dropped from £30k pa to £17k so it's very tight and probably not going to be able to pay off our debts

We approached debt free direct to do an IVA they have sent through the proposal which is riddiculously incorrect, therefore we sought additional advice from an independent IVA supplier who has told us that the IVA will not get approved as we don't live in the flat and we can't sell the flat or even get the rent up to cover the mortgage payment and to make it worse NR told us that the payments will go up in Jan quite considerably and kindly advised us to seek an alternative mortgage provider!!!

We have been told to stop paying all creditors for three months and made to seem quite easy to do, so just wanted some honest advise from people that are in a similar situaiton. It's all a bit scarey stopping making payments...

Does anyone know whether we have to tell our landlord? and can they kick us out if they find out we have gone BR????????

How long does it stay on your report for?

and how long does the process last?

Does it really feel like your debt free after the completion notice?

Any help would be much appreciated......

Thanks

Lisa

skylight

The official receiver will not allow you to have a mortgaged flat and you live elsewhere. Its not going to happen so you need to look at what you are going to do - either give up the owned flat or move back into it.

Your own property is not neccessarily lost in BR - it depends on the mortgage/arrears/equity etc. If mortgage is upto date and there is no equity you should be able to keep it (you have to keep any secured debts on it too though). However, being a BR will mean your options for a re-mortgage are almost none and could you cope with the mortgage payments when they go up. Its all something you need to consider.

As to your current tenancy, check out your contract and see if there is a BR clause in it. If you are up to date with your rent, most landlords would not care about BR, so if you give up your flat then at least you have a home still.

If you want to keep and move back into your flat then obviously this (and anything secured on it) will have to be kept paid - do not stop paying these! A big thing to bear in mond as well, is if you go BR tomorrow and in Jan09 find you cannot cope with the mortgage payments then these debts cannot be included in your BR - you have to be prepared to give it up at the same time or not at all.

Who have you spoken to about your debts? Try Payplan or CCCS. Do not touch Debt Free Direct with a bargepole - they are in it for money only. Take a charity based company who wants to deal with you personally.

Tigerlily31

Hi Lisa,

Welcome to the boards, a great first post. I would first and foremost advise you to seek advice from CCCS, National Debtline or your CAB before you commit to an IVA.

So here goes., let me try and answer some of your questions- Your LL will only be informed if you have arrears with him/her as far as I know- you can ask the OR not to inform them. Most landlords are more concerned with having a good tenant and rent on time than evicting you for BR. Check your contract and see if there is a BR clause in it.

The same thing happens with an IVA as with BR in my opinion, your credit record is shot to bits either way and it affects you for 6 years pretty much either way.

When you go BR it's the first year that is the most stringent as you are undischarged and the OR does his/her investigation. I have been BR a month now and even from going from an IVA to BR I feel soooo much better as I know realistically I couldn't pay what Payplan wanted me to pay for my IVA.

Once discharged it stays on your file for another 5 years and then that's it really.

It's not as scary as it sounds and if you're considering an IVA anyway then it may be worth weighing up the two.

Hope that helps, I'm no expert but someone more experienced will be along soon I'm sure:o

Take care,
Tigerlily x

So_Sad_Angel

Hi Hally01

First of all lots of <<<<HUGS>>>> & welcome.

You need to speak to the debt charities, as already advised, but the main thing is that you have recognised that there is a problem & are dealing with it. You deserve a big pat on the back for getting this far.

Debt is a nightmare & whilst we are dealing with it then its OK...but one thing happens (ie salary reduction) & it all falls apart....

So...call the debt charities.(please don`t do DFD...they have profits to make!!!)

Please keep posting...you will always get help here (or on DFW site)...the main thing is that you have taken control of your situation & that first step to sorting it.

Take care, Angiexx

tigerfeet2006

Hi Lisa and welcome to the board.

You've already had some excellent advice so I won't add to it, only to say links and to the debt charities in my signature.

While you are waiting to talk to someone why not try the Debt Remedy on the CCCS site to give you an idea where you stand.

Any questions you have don't be afraid to ask, there is usually someone around who can help or support you.

hally01

Hi Guys,

Thanks for replying to my thread, I've actually already sought advise from debt free direct, a charity and also an independent IVA specialist who advised that we would not be accepted for a iva

the independent iva specialist said that she wouldn't take on our case because we would be declined therefore recommended br... so just wanted some advise from people that have gone through it and what to expect????

Thank you everyone...

Tigerlily31

Hi Hally,

Be careful with DFD and even independents, seriously they are all out to make big bucks out of you even though you're struggling they see you asa business opportunity. Try CCCS- a charity or National Debtline they have your best interests at heart and will tell you what may be the best way forward for you :-)

So_Sad_Angel

Hi Hally01,

Just make sure that you don`t pay for advice....you don`t need too.

All impartial advice should never involve any kind of fees.

Take care Hun,

Angexx

hally01

Hi thanks again Tiger Lilly, we have already spoken to a charity I can't remember which one it was and they recommend an IVA for us however after speaking with the specialist they said that we wouldn't get approved..

Have you been through BR?

Tigerlily31

Hi Chuck,

BR is not all that bad, I'm one month in and so far so good. I feel so much better than before and feel like a weight has been lifted from my shoulders. I have felt ashamed and angry with myself but realised it was pointless beating myself up and that BR was the only way I could possibly give myself a chance in life.

I was petrified of BR and went for an IVA but it was the wrong thing to do in hindsight but hey that's whay it's called hind sight :-)

Hope that helps a bit,
Tigerlily x

tigerfeet2006

Ok for your own peace of mind please ring Nat. Debtline or CCCS in the morning, it is a free call and the Insolvency Service respects them. You also need proper advice ref: the house.

Then you need to ring your local county court and find out what sort of system they use, appointment or walk in or some other. They will also send you the forms to fill in or you can fill them out online, link to follow.

You go to court and hand in your forms with your fees. £150 court fee and £345 OR's fee. They check the forms. You may or may not see a judge. Your forms are stamped. You are BR.

You then have your OR's interview at a later date where they will go through everything.

You may have to pay a percentage of your surplus income after essential living expenses for 36 months. This is called an IPA.

That's it in a nutshell but there is obviously a lot more to it than that.

If you want to register to fill the forms in online then you do that here:

https://www.insolvencydirect.gov.uk/isolv/

If you want to download them to fill in by hand then you need these two plus the notes:

Debtors Bankruptcy Petition:

http://www.insolvency.gov.uk/pdfs/forms/form6-27.pdf or http://www.insolvency.gov.uk/pdfs/forms/form6-27.doc

Statement of Affairs (Debtor's Petition):

http://www.insolvency.gov.uk/pdfs/forms/6-28.pdf or http://www.insolvency.gov.uk/pdfs/forms/6-28.doc

Statement of Affairs (Debtors Petition) (Guidance Notes):

http://www.insolvency.gov.uk/pdfs/fo...rsguidance.pdf or http://www.insolvency.gov.uk/pdfs/fo...rsguidance.doc