Any advice please

silou

I have been reading this board and the good people on it have answered many of my questions but obviously each persons situation is a little different and I think I need some advice and opinion on my current situation. Its a long story but I'll try and keep it as brief as poss. Ex husband and I jointly bought our house in 2004 and seperated in 2006 at which point, having (very stupidly) taken out a second mortgage on the property, had we sold we would have barely broken even so I offered to stay in the house with our two children (partly because I didn't want them upset any more than necessary) and take on paying the mortgage each month though I knew it would be a struggle and wasn't really ever a long term answer, I also had to change the first mortgage to interest only in order to afford the payments each month ex's name had to stay on the mortgage because they wouldn't have lent me enough on my income to pay off the two existing mortgages (ex couldnt have afforded mortgage repayments on his own hence the reason I stayed and not him). We also had CC/storecard debts in our individual names and were each to deal with our own, I set up a DMP with CCCS (ongoing) ex stuck his head in the sand and did nothing. Basically I struggled on until last year when I thought that with a bit of luck I might be able to sell the house for enough to clear both mortgages, my plan was for the kids and I to move into rented and start to have a life again. House didn't sell and prices started to drop to the point where I wouldn't have been able to clear mortgages (even if anyone had wanted to buy it!) so took it off the market (big mistake, I know). I've continued to struggle on for the last few months but now ex's creditors appear to be coming out of the woodwork and the first one has applied for a charging order on the house, he is apparently in about 40k worth of debt (about 4xtimes as much as when we first seperated) so that coupled with at least 20k of negative equity means I am likely to be stuck here struggling for many many years to come and will ultimately end up paying off ex's debt even if I do stay here till the place is worth enough to cover everything! I saw a solicitor this week to get some advice about trying to fight off the charging order and he said I should serously consider voluntary repossesion and make myself bankrupt as I would have no chance of paying off the shortfall in the mortgage. I would be glad to get away from this house, as it leaves me with no spare money each month and is now starting to need work done on it which I have no hope of affording, so no problem from that respect but I do have several questions,
1. Would they allow me to become bankrupt as at the moment I can (just) afford to pay everything each month, though if utilities continue to got up I won't be able to and it gets harder every month.
2.Would there be any way that even after BR I might be chased for the shortfall on the mortgages?
3. What would be the right time to apply for BR, after I've moved out of property or would I need to wait till house sold by bank and shortfall confirmed?
4. Assuming I might need a few months rent in advance for a new place, I think I'd need around 3 months of not paying mortgages to save this and BR fee, what would I say to mortgage co's in meantime and would I need to stop paying DMP aswell?

I know my situation isn't as bad as many others but I do feel completely trapped and likely to be for many years to come if I stay in this house so all help would be very welcome and if you've read all this well doen and thank you.

tigerfeet2006

1. Would they allow me to become bankrupt as at the moment I can (just) afford to pay everything each month, though if utilities continue to got up I won't be able to and it gets harder every month. yes of course you can.
2.Would there be any way that even after BR I might be chased for the shortfall on the mortgages? No.
3. What would be the right time to apply for BR, after I've moved out of property or would I need to wait till house sold by bank and shortfall confirmed? Get rental property, move out and go BR. Don't worry about the house.
4. Assuming I might need a few months rent in advance for a new place, I think I'd need around 3 months of not paying mortgages to save this and BR fee, what would I say to mortgage co's in meantime and would I need to stop paying DMP aswell? If you are going BR stop payiny the mortgages and the DMP. The only things you should be paying are the essential bills like CT, utilities, water etc. Save the money for rental and BR fees. Tell the mortgage company you are seeking advice from a debt charity. Ring one of the debt chaaities and discuss your situation with them. National Debtline are open till 12pm today I think.

Also be aware if you are going BR then your DH will be responsible for any joint debts like your mortgage so get him to ring a debt angency asap to sort himself out.

Numbers and links in my sig.

All the best with it all.

silou

Hi, many thanks for the response I was a bit worried that the judge might laugh when I turned up and said I wanted to go bankrupt so you've put my mind at rest on that one. As my DMP is with CCCS I'll contact them to discuss it all but they don't seem to be open today so will have to wait till Monday. Would tell ex to contact debt charity (as I have urged him to do in the past) but haven't had any contact with him since christmas. Since he's never paid me a penny towards the children or anything else and given its his charging orders that have been the final straw I'm finding it hard to be concerned about what happens to him!
Thanks again.

maxmycardagain

nothing wrong in giving the judge a laugh, if you get the old codger i got you could lead him on too.....

wink wink.....lol

dalip

Afternoon and welcome. If you follow TF advice you wont go far wrong and any other questions that might pop up just ask.As for your OH do what you have to, to keep your children safe,he is big enough and old enough to look after himself.D

silou

Don't mind the judge laughing as long as I walk away with this weight lifted, though I don't think I'm in any fit state to even lead old codgers on! lol
Thanks for confirming the advice dalip and you echo my views beautifully on the ex-oh!
Sure there'll be lots more questions before I'm done.
Thanks

silou

OK, have been avidly reading many of the other threads and have a couple more questions (hope you don't mind).
I have a sole current account with RBS - its only one of their basic ones anyway because my credit rating was already rubbish by the time I opened it so would they be likely to freeze it?
I am in receipt of DLA for my 11 year old son, would this be classed as income when looking at IPA?
I've been reading about the tax code change thing, does that happen to everyone and would that be a pretty big clue to my employer that I was BR? My employment wouldn't be affected by BR (as far as I know) but its quite a small organisation where nothing is confidential and I know the person who deals with the wages side of things quite well. I realise they may see the notice in the press anyway but if they do so be it, just didn't want to flag it up to them iykwim.
If I'd moved into rented before BR would the landlord be advised that I was BR?
I'm sure the answers to these questions are out there somewhere but I have so many thoughts whizzing around my head that I'm finding it difficult to take in what I'm reading.
Thanks again for the invaluable help everyone.

fiveyearplan

silou wrote: »

OK, have been avidly reading many of the other threads and have a couple more questions (hope you don't mind).
I have a sole current account with RBS - its only one of their basic ones anyway because my credit rating was already rubbish by the time I opened it so would they be likely to freeze it? More than likely
I am in receipt of DLA for my 11 year old son, would this be classed as income when looking at IPA? not sure
I've been reading about the tax code change thing, does that happen to everyone and would that be a pretty big clue to my employer that I was BR? I think it does happen to everyone
My employment wouldn't be affected by BR (as far as I know) but its quite a small organisation where nothing is confidential and I know the person who deals with the wages side of things quite well. I realise they may see the notice in the press anyway but if they do so be it, just didn't want to flag it up to them iykwim.
If I'd moved into rented before BR would the landlord be advised that I was BR? They are supposed to inform LL but some do and some don't
I'm sure the answers to these questions are out there somewhere but I have so many thoughts whizzing around my head that I'm finding it difficult to take in what I'm reading.
Thanks again for the invaluable help everyone.

Sorry not to be more helpful but a lot of this is up to the individual OR and you won't know until it happens.

dalip

The NT tax code does not always get applied. I went bc in nove and mine was never applied. A lots depends on the time of year you go bc and i there is enough time to make it worth their while applying. If the don't they just collect the tax you paid directly from the taxman at the end of the tax year you went bc.d

silou

Thanks for the replies, just on the bank account if it was frozen can the OR instruct the bank to unfreeze it so that I can continue using it (there won't be a stash of money in it for them to take) or would RBS be likely to close it?
Also I've wanted to get out of the job that I'm currently doing for ages (long hours not enough time with the kids, lots of stress etc) but I've stayed because I couldn't afford to leave - if I was to leave after BR and take a lower paid less stressful job would that be really frowned upon? I'm not trying to shirk away from an IPA or anything but my current job is starting to affect my health.
Thanks again for all the help and sorry for all the questions, they just keep coming!

dalip

I did exactly that. I hated my job and with bc came the freedom to leave and take another job. I had an IPA of £50 a month originally but it got dissolved when i took on my new job. Nothing was said and to be honest i would not have caredi f they had. Deep down i knew my reasons for changing where valid,even offered to continue paying the IPA on a lower wage:o but it was their decision to dissove it.Go for it. Thats what bc is all about a fresh start.Good luck to you.DX