Help with bankruptcy

josephine1_2

After talking to the National DEbtline as recommended here, they've advised going bankrupt rather than a DMP. We rent and have been here for over a year, the first 6 months we had a 6 month contract and then agreed with the landlord to go on a month to month rolling contract. 8 months later they still haven't bothered getting the letting agents who 'found' us, that's all they did, to write up the contract. We've always paid the rent on time and there was nothing in the old 6 month contract about bankruptcy, are we ok? PLus when we go bankrupt, I owe money to barclays and the co-op, what can I do about bank accounts? My partner is also going bankrupt, he doesn't owe money to these 2 so could open an account with them? Is it better to open a basic account now, or wait until after bankruptcy? For everyone whose been through it, are there any other bits of advice you can give me? We have a 5 week old baby, owe 45k approx, I'm on maternity leave but I'm normally self-employed. Really appreciate any tips as terrified about the whole process of ending up homeless with a baby

skylight

Okay. Home first cos thats important!! Your contract is still applicable, it becomes a rolling one, which has happened. Now, if there is no BR clause in there they cannot evict you for that purpose - but on a rolling contract they can evict you at any time they please (with the correct notice of course.) The OR (official receiver) may or may not write to the landlord to tell him. It depends on the OR on the day, but during your interview with him (where he will ask for a copy of your contract if he has not asked in writing beforehand) you should tell the OR that you are under serious threat of eviction if the landlord finds out - plead to their better nature. Of course, you could tell the landlord anyway yourself (which if hte OR does let you know he will tell then its the best course of action). If you pay on time, quiet tenant etc then he may still be happy with that, especially in this credit climate when getting a new tenant may be difficult for him.

Bank accounts - Natwest do a basic account, which they may or may not close after BR. Some here have had the close I (and others) have not. They seem to be a little more lenient these days. The Co-Op have recently changed their stance on offering basic accounts to those who go BR owing them money so you are stuffed there. Nationwide is somewhere you could try, I understand Barclays still offer basic accounts to BRs who owe money.

It would be better to open one now, but whereas your OH should not have a problem opening a basic account, you might. Whilst on maternity leave though you could open a post office card account - you can only have benefits paid in, like child benefit and child tax credit and take out the cash at an ATM or PO, but it could help you in the short term. Plus, no credit check!

The absolute worse case scenario for you is your LL evicts you. You get yourself to the council, with a baby you 3 are a priority case. Now, you could well end up in hostel style accomodation for 6-12 mnths (I did many years ago, and although crap it wasn't the worse time of my life) but you would eventually be offered council accomodation. It depends whether you can hold on until then. Most people give up - I had no choice!

dalip

Hi

Welcome. You will get good advice here. Mine for starters would be to get your OH to try for a co-op account pre bc. Telephone 08457 212 212. They sometimes tell you there and then if it has been approved. It also has on line banking and a visa electron card. When i went bc i used OH basic abbey(he never went bc) and never had problems,except having to ask him for money:rolleyes: .If by any chance you get refused that still gives you time to apply to barclays.

Have you rung your local court?. You will need to find out if they operate a drop in system for bc or appointments and you will also need to ask how many copies of our SOA you need each.

Ok thats enough for the time being. You are bound to get others coming on to welcome you and offer their advice D

josephine1_2

thank you both, excuse the typing i'm holding the baby. i owe money to the post office as well, so no good for me, but i'll try nationwide i don't owe them money. thank you for the tel number for co-op will get partner to call tonight. i've just downloaded the details of our local courts that deal with bankruptcy, so will call when she's quiet. at the moment we are getting money from his wages, child tax credit, child benefit, maternity allowance and they are all paid at different times. we have had lots of letters from our creditors including a couple of default notices, but nothing else so i'm trying to hang on and not declare bankrupt until we've saved the fees and got a new account. the post office told partner he could have an account today, but couldn't have his wages paid into it!! the co-op isn't like this is it?

skylight

The card account at the post office is for everyone - so they cannot refuse you an account. Its set up with DWP and has nothing to do really with the post office, they just administer it. The PO account is just solely for having benefits paid into it which is why your OH cannot have his wages in there (if thats what he asked for!).

The co-op is great - have an account with them too! very quick in doing it all over the phone, as long as you are on the electoral role where you live. They could check me that was so I didn't even have to send in ID. Although I do have issues with this account and my child tax credit, but this appears to be just me!

dalip

The phone lines for co-op are open until 8pm tonight. Good luck.Not sure i like the big VISA sign on my electron card but beggars can not be choosers:D

josephine1_2

i want to try and save not just the fees for going bankrupt, but a few hundred as a safety net because of fear of accounts being frozen and not being able to get at the money we are entitled to to keep the roof over our head. I know this is probably hard to answer, but how long do you think I can wait before going bankrupt, bearing in mind what I said tat so far we've only had letters requesting payment and a couple saying they are putting defaults on our credit card accounts?

dalip

Well some on here have gone as long as a year with only offering the £1 token payment,but each case/creditor is different. Just save as much as you can as quickly as you can.d

josephine1_2

thanks dalip

josephine1_2

just wanted to doublecheck, when partner rings tonight to open a co-op cashminder acc, should he say he may be going bankrupt in the near future, or not mention this?

skylight

Do not mention it. At this stage its a possibility, not fact and you only need to declare facts.