Difference between going BR and being made BR

MrsST

Sorry if this has been asked before but I can't get the search function to work properly.

Is it actually worse to be made BR by one of your creditors?

DH and I are in a panic at the moment as we have stopped paying our secured loan (on the advice of an insolvency advisor) in preparation for going BR. I read on another post that they are likely to start repo proceedings very quickly, where the mortgage company (who we also aren't paying) won't rush anything.

The big problem we are having is raising the money to actually go to court and do it. We have just had to pay out for 6 months rent so we actually have a home to go to, but finding another £900 on top of that is looking unlikely in the immediate future. It's going to be at least a couple of months before we could come up with that amount of money.

We can put some money aside but we are having to save each month for the next 6 months rent, so that's another £700 per month that we are having to find. DH is working but the work is quite patchy at the moment and we just don't know if he's going to have work regularly for the next few months.

Tonight, we've been wondering if it would actually be better for us to 'let the BR come to us' so we don't have to pay the fees. Is that true or would it be frowned upon?

Please help.

TIA

sandywindsor

I don't think there is any difference but someone more knowledgeable will be along.
i am 4 months arrears with mortgage and 2 with secured loan.
Mortgage company are happy to wait until after OR interview (letter today requests £76 instead of usual £810),secured loan people keep hassling:mad:
It is likely they will try for repossession but they won't get all their money as I now have negative equity and house price has really dropped.

I am unemployed so,until I get a job am stuck.

Anyway welcome to the forum...some very helpful/supportive people here:D

MrsST

Thank you

We haven't told any of our creditors that we are planning to do this. I'm wondering now if we should.

We have no equity in our house either and I'm not sure that the secured loan co will get anything at all.

d123

I think the only difference is it costs you money to make yourself BR, while it is free (to you) if someone else makes you BR.

Other than that, bankruptcy is bankruptcy.

sandywindsor

MrsST wrote: »

Thank you

We haven't told any of our creditors that we are planning to do this. I'm wondering now if we should.

We have no equity in our house either and I'm not sure that the secured loan co will get anything at all.

I would advise not to tell creditors until after BR otherwise they could start other court actions....and hassles...I just ignored mine for over 2 weeks until after my BR hearing

nomis131276

It actually much rarer than you think for a creditor to take someone bankrupt it cost more than a debter petition and the creditors know that after the OR takes his cost they rarely get anything back. As for the repo it can take ages.

tigerfeet2006

MrsST wrote: »

Thank you

We haven't told any of our creditors that we are planning to do this. I'm wondering now if we should.

We have no equity in our house either and I'm not sure that the secured loan co will get anything at all.

Don't tell your creditors or they will most likely up the hassling hoping to get some money out of you before you do go BR. Just ignore the phone calls and letters and get on with sorting out your BR. If you have room on any of your credit cards then it is quite ok to take the money off them to go BR.

It costs a creditor !200-1500 to make someone BR so they only do it very rarely and it is ususally HMRC, Council tax and Amex that seem to do it.

blind-as-a-bat_2

I would go along with what everyone else has said, there is no point telling your crediters your plans, it will just send them into a wild herrasment frenzy.

Try not to stress too much either as what can any of your creditors do?

as long as you have no CCJ,s yet the answer is nothing, they have no legal powers to enforce payment untill they take you to court, and that is the last thing they will do.

My advice is if they know your telephone number get it changed and dont give it to ANY company, that way they can only write to you, egnore all threats of court action as they dont matter, you only need to respond to an actuall letter from the court, if it ever gets that far which i doubt.

I managed three months before citi financial actually employed someone to look for me (not that i had gone anywhere ) and then i had been BR for nearly a month before the guy turned up so that makes four months. Even if i hadnt he had no legal right to come to my door so he was nothing to be afraid of and would have been easily got rid of.

egnore any threats anyone you do speak to says, they are empty ones.

In short you have decided you are going to go BR, you have no assets that can be siezed as such anymore so try relax.What can any of them do

If any of your creditors start to be a real pain give me a shout, there are some delaying tactics you can use on most unsecured debts, and they do work to buy time if nothing else, but its not worth the work unless they are really being a pain