Advice for a newbie needed please!

jmach

Hi there,
I am a complete newbie at posting so please bear with me! i have lurked on this board for a while now while both myself and my husband contemplated bankruptcy, but now we have decided to forge ahead and do it i have loads of questions that i hope you kind people on here can help me out with!
We have been on a DMP with CCCS since last December, in May we had to get in touch with them because we just couldnt survive month to month, so after reviewing our I & E, it was reduced, however this now takes our repayment plan to over 10 years - and thats if the creditors agree to no interest!, however this reduction is now causing our creditors to hound us yet again, and to be honest i just dont know how much more i can take of trying to get out of this mess.
We currently own our own home (well mortgaged!), we have a mortgage of £64,000 but estimate that its currently worth maybe £60-62,000.00, which leaves us with negative equity, we have decided to move out anyway as we do not wish to stay here long term, we moved to this house 2 years ago to downsize in an effort to try and help with our struggling finances but alas here we are in an area we have found is not that nice, and really do not want our children growing up here!
Firstly my questions are - i have read on other posts that most LL require 6 months rent upfront, however this means that to save that money plus the BR fees for both myself and OH it will take around 6 months by not paying DMP and mortgage - is this acceptable - more so for the mortgage or will they kick us out before then.
Also if we have no desire to try and keep the house and neither does the OR what happens? will the mortgage lender just take it back?
I am also really worried (i dont know why) that we might get refused bankcrupty, we owe between us just over £50,000.00 and we have tried everything to pay it back - DMP etc, so im sure we would be OK but its just a nagging thought.
Sorry for my ramblings and hope you managed to stick it out reading so far!
Jen

Scarlett.1974

Hi Jen and welcome

The first thing you should do is contact one of the free debt charities for professional advice. CCCS would be a good place to start as you already have your DMP with them and I found them wonderful when we were first looking into BR.

To try and answer some of your questions:-

1. You can certainly stop paying ALL your creditors (inc. mortgage) as soon as you decide BR is the option for you and yes, save this money for BR fees and moving/rental costs. As I'm sure you're aware already your creditors WILL pile the pressure on for you to pay and you will need to find the strength to deal with this (I would recommend you contact them telling them to contact you in writing ONLY and also change your phone number if you can).

2. Yes, your mortgage company will reposess the house and any shortfall in the sale will go into your BR.

As long as you've taken advice and they DO recommend BR is the option for you then you won't be refused by the judge With £50k debt and no assets (I assume?) I can't see any issues myself But please do contact CCCS (or one of the others if you prefer) for advice as soon as possible.

HTH.
Scarlett

jmach

Hi and thank you for the reply Scarlett - i have read your diary and think its great, you have been a great source of information for us - just getting the process from someone first hand.

I will call CCCS again tomorrow to discuss whats next

thanks again

Jen

tigerfeet2006

Have a check with some of the landlords before your credit history is totally trashed with the BR and see if any would accept a lower deposit. At the moment without the BR on your file you stand a better chance of getting the normal terms and if anyone would be guarantor for you it might help as well. But I would be up front with them and tell them you might be applying to go BR in the future.

Scarlett.1974

You're very welcome Any other questions you have don't hesitate to ask.

This is the letter to send to creditors to stop them phoning you:

Your name and address

Date

Dear Sir/Madam,

Re: Account Number: xxxxxxxxxxxxxx

I am writing to express my serious concerns regarding the telephone calls that I have received from your company.

I am now formally requesting that all further correspondence be made in writing only.

I demand that these phone calls stop immediately. I am familiar with the terms of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1970 and I believe your harassment places you in breach of these acts.

If you continue to call, you will also be in breach of the Wireless Telegraphy Act (1949) and, as such, I will report you to both Trading Standards and The Office of Fair Trading.

Take further note that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

You will be deemed to have been served notice of my request and I will deem it served by <date 3/4 days after sending letter>, I am advising you that any calls received after this date will be recorded with the intention of them being used as evidence.


Yours faithfully,


Your name.

jmach

Thanks Scarlett, i will definetly get the letter together to send out - it would take some pressure off actually being able to answer the telephone without dreading whos on the other end.

Jen

Scarlett.1974

jmach wrote: »

Thanks Scarlett, i will definetly get the letter together to send out - it would take some pressure off actually being able to answer the telephone without dreading whos on the other end.

Jen

It might also be worth mentioning something along the lines of "I am currently seeking advice regarding my financial situation and have an appointment in <next month>. I would appreciate your patience at this difficult time and will be in touch with you soon". Or something along those lines, just to give you a bit of breathing space. Worked a treat for me with a certain high street bank who were absolutely revolting <neigh>

jmach

Hi there,

another question please! - do you have to provide proof of your outgoings to the OR on the SOA, the reason im asking is i have 2 children and pay £280 per month for childcare for both of them - thing is i pay this to my mum and not a registered childcarer - will this matter?

thanks

Jen

Scarlett.1974

jmach wrote: »

Hi there,

another question please! - do you have to provide proof of your outgoings to the OR on the SOA, the reason im asking is i have 2 children and pay £280 per month for childcare for both of them - thing is i pay this to my mum and not a registered childcarer - will this matter?

thanks

Jen

Hmmm, that's a good question. The only thing we were asked for proof of was our rent (had to send them a copy of the tenancy agreement).

I wouldn't have though it would be a problem because:
1. You need to pay for childcare and just because it's your mum doing it, she still needs & deserves to be paid for it!
2. I would imagine that the £280 you pay is a LOT less than it would cost to put both children into nursery / with a registered childminder?

How do you pay her? Cash, cheque, bank transfer? It might prove helpful if you can show some proof of paying her this money, on a bank statement for example?

PixiePie

jmach wrote: »

Hi there,
Firstly my questions are - i have read on other posts that most LL require 6 months rent upfront,

Confused over this - I've rented for 10 years now in various places across London and never had to pay this much - a month in advance and a month as a deposit (which by law has to be held by the third party companies now it CANNOT be held by the LL) is the standard. I've only ever been credit checked for one place, which I passed as back then I had only missed a few credit cards (well, ok quite a few missed payments were on my file only a couple of years old). If you move into rented accom before BR then you should pass any credit check, and not everywhere does a credit check - also try and get the check done in only one of your names, ie if one of you has all the credit cards in their name, then credit check the other person for the rental. When I was sharing with an ex and a friend (the place they did the credit check) they did the check on me only, which did mean it was my name only on the rental agreement I think, but that was fine (they other two were students and I was a full time employed person so would have done better on the credit check apparently).

Another alternative for the credit check is if you have anyone that can go guaranteer (sp.) for you on the rent. Good luck

jmach

Hi there thanks for the replies,

I dont have any record for paying my mum as i pay her cash once a week - i so hope this isnt going to be a problem - like you say i have to pay her - and to be honest most of it goes on travel to take my son to school and food etc for the kids while she has them (my mums great!)

As for the renting, i hope it would be only 1 month upfront - its just that ive read on here about others paying 6 months (i think Scarlett did - correct me if im wrong!) and my brothers already offered to be guarantor if needed.
My other worry is if i dont mention bankruptcy to the EA we would like to let from and then we go bankrupt and it affects the tenancy.
My heads swimming at the moment - theres just so much to consider.

Jen