Help, please

1bigmess

I've been lurking for a while and thought now was the time to post. I'm in a total mess and bankruptcy seems the only way out (had advice from CCCS and an IFA). I still have queries and just can't seem to take everything in, no matter how many times things are explained to me.

Just as background to how I got here, I was a police officer for 7 years and became a sergeant at the age of 25. I'm married and have a daughter (3) and the job was destroying us, so I left and worked as a private investigator as part of a franchise.

I've always had debt, but managed to repay things, but the business has failed and i'm now unemployed (waiting to hear back re a couple of job applications). I've got credit card debt of £11,000, personal loan £3500, HP on a car £6300, mortgage 96,000 and secured loan (used to buy franchise) £20,000. To top it all off, because the business failed I need to get out of the franchise with 4years of contract remaining. They want £30,000 for this. Can't afford the legal fees to fight.

I'm in a low low place and feel that i've totally let my family down. my 3 year old keeps askingwhy daddy is sad and it's killing me to hold it together and feel i can't cope.

My business was a LTD company which I am still director of. I've applied for it to be 'struck off' as it doesn't owe much money itself. This will take 3 months. Do I need to mention this at court or to the OR? I'm still technically a director, but the company is not trading and I'm just waiting for it to cease to exist.

I'm currently on jobs seekers allowance and my wife works part time. Even when bankrupt and if a iget the jobs I've gone for, there is no way I can afford the mortgage. what do I do??? The house is on the market but given the current market I'm not getting my hopes up. There is little (£3-£4000 equity). If it does go, how do people manage then to rent? Everyone seems to want 6 months rent in advance if bankrupt when applying

Also, I have one car on HP. I hope this can be taken back and the outstanding debt written off in BR?? Ifso, I have one older car worth a few hundred. It needs work to sort it and it is essential for my wife to get to work and will be for me if I get the jobs I've applied for. The only way I can get it through it's MOT is to pay on a credit card knowing full well I'm going BR in the future. What can happen to me for this?

Also with the BR fees, I can only pay by withdrawing cash on a credit card!!!

Sorry for the long post. Not sure it'll even make sense having not read it back myself. Just had the urge to type something and get it off my chest.

get_me_out

Hi

Will advise where I can but being fairly new I'm not as clued up as many on here.

Firstly where possible I'd say get a private rent FIRST before BR. Some of the smaller companies don't have a clause about BR. That way you have your home sorted before your court date.

I've read a few here take money to cover fees and as your not working you need to fund it some how. You can claim the 150.00 so you dont pay that BUT your proof must be less than a month old. I think the OR accepts this with no problem.

Sorry can't help more but wanted to say don't worry and the forum is back tomorrow night.

tigerfeet2006

Sorry I'm off to bed right now but didn't want to leave you hanging.

As the site is going to be offline tomorrow the wonderful guys here have set up a place where you can get advice and support.

Just follow the link and sign up and away you go.
http://bankruptcy.informe.com/portal.html

1bigmess

Thanks for taking the time to reply last night.

Re the comment about renting before BR, may sound stupid, but how do I do that whilst I've still got a house and mortgage? Do I just stop paying the mortgage and move out? Can you get away with doing that?

welshpaula

hi there just wanted to say hangfire till you have discussed your house with someone as you dont seem to have much equity in it which could mean the OR will let you keep it ? dont do anything to hasty until you have spoken to an expert! and ive been low where you are now and 3 years after bankruptcy it was the best thing i ever did (not proud of it mind ,but was the best choice for me ) ive got my health and my family and no credit ..... its good ! good luck it WILL work out for you ! paula x

1bigmess

Thanks Paula. The problem with the house is that I don't think we can afford to keep paying it and the secured loan. Jobs I'm applying for will pay between 15-20k. The mortgage and secured loan cost total of £910 pm, then I have my daughters nursery fees so my wife can work £250pm (for 2 days a week!!!) plus petrol job I have most chance of getting is 50 mile round trip. I really can't see me keeping up the payments on the house.

tigerfeet2006

Talk to one of the debt charities in my signature and get some professonal advise. You will need to do this as if you do decide BR is the way to go then the judge may postpone your BR until you have taken advise.

If it is the way to go then stop paying all your debts and mortgage and save the money towards renting a new place. Make sure you keep paying utilities and CT etc. though.

jo70

Hi. Talk to anyone you can. CAB, National Debtline-are there any charities by you? We had advice from a non-profit debt counsellor.
Easy said, but take a deep breath, get yourself a drink-calm down and make yourself a plan. Contact the afore mentioned-get the advice you need. If BR is your route then apparently day to day living on cards is not going to be a problem-we've all got to do it!
Wish you all the best-me and better OH did the deed Tuesday.

1bigmess

Hi. I've spoken to CCCS, CAB and an IFA all of whom say bankruptcy is the best route. As soon as details start been discussed my mind turns to jelly and I just don't take anything in. Suppose I just need to get a grip.

As we already have the house on the market, if I go BR and then the house sells with a shortfall, am I liable? Would I have to go BR again to cover this?

Last question, for now, how does the online application for BR work? Do you actually submit it online and then get given a court date or do you just print it off and take it to court with you?

Sorry for stupid questions. Believe it or not I am half intelligent usually (accept were my finances were concerned obviously!!). It's just that i can't think straight with this

jo70

Hi. We are real newbies. We don't own our house-we rent, therefore so sorry but can't advise about properties, all we can say is that on this site there are a lot of really informative people.
There are no stupid questions. We had really good advice from a non-profit place in Brum. But eventually we printed the SOAs off the computer and adjusted figures. Post your SOA and i guarantee you people on here will help-they're a good bunch. Just remember you're not alone.X

Useless_with_wonga

Hi,
In a similar spot right now so i know how you feel:o Re the shortfall in your mortgage it gets included in the BR.
Lots of people have just stopped paying the mortgage knowing they were going BR. Saved up for their rental property and then moved out before informing the mortgage company of their intentions. From what i can gather this seems fairly common practice albiet the mortgage company will doubtless chase you by telephone as soon as their payments stop i think it takes them time to instigate reposession actions thus giving you some time to sort out alternate acommodation/finances.
Not sure about the online forms i was of the impression you filled them in and printed them off. I believe you have to contact your local county court for a BR hearing(appointment) although i think some offer a walk in arrangment. You would have to enquire to see what the situation is for you locally.
However as someone said if you are in negative equity or minimal equity(1K ish) then it may well be the OR would not pursue your house and you may be able to remain there as there is no benefit to your creditors by taking it from you.
If this is not the case the OR can give you up to 12 months to find alternate housing as you have a young child they will not kick you out on the street but give you time to get sorted.