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New and kinda confused

Hi

I guess this has been some time coming. *sigh* I've been reading and researching for about 2 weeks about bankruptcy now as I don't believe we have any other option open to us. There is myself, my hubby and 5 kids (ages: 18,14,7,5,4).

Mortgage & Secured Debts
We have a mortgage with Abbey which I think is in negative equity now (mortgage 117'000 with 5% cashback, second mortgage 14'500 and secured debt 16'000), so the minimum we could think of selling the house for would be 143'000. Unfortunately I am stuck in the middle of diy which I cannot complete. We currently pay £900 a month and as far as I am aware it is interest only. This is the second payment we have missed and they have been calling and I have been ignoring them. :( We also pay £340 to Welcome Finance.

Unsecured Debts
We had a loan and some credit cards which I think totalled up to about 16'000. I went to CAB with mine a couple of years ago and now repay £1 a month (I have been offered settlement payments in the post but cannot afford them). My OH initially went through PayPlan but we couldn't continue with the payments, defaulted and signed up with Spectrum to whom we pay £17.63/month with £4 being spread out to the c/c's.

OH and I split up some time ago but got back together after about a year and now we have the CSA chasing us for over £2'000 which I am trying to pay back at £15 a week. I lost my job due to being ill and then my kids getting ill so have no money besides child benefit going into my account. I bank with Barclays who have charged me over and over (I couldn't log into my account because my kids had 'pinched' my Pinsentry box neither could I phone them as my phone was cut off thanx to my kids using the phone and runing up the bill). I finally managed to phone them yesterday to get the direct debits cancelled. I was receiving tax credits now they tell me we owe them over £500 and council tax wanted £600 by the end of September or they were going to make us bankrupt. I managed to pay £150 the week after and my parents have sent me some money (they are in the US) but I have to wait for the cheque to clear.

I am currently working on an income and expenditure thingy which I will post once done. I plan to phone the CCCS and Co-Op Bank (nice that they have freephone numbers!).

I do have a couple of questions though:

1. When do I inform Abbey?
2. How much longer can I stay in the house if I'm not paying?
3. Will Council make me bankrupt and how do I find out?
4. How do I find which court serves my area for bankruptcy?

That's all I can think of right now but want to thank you in advance for any advice you could offer.
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Comments

  • deedee_3
    deedee_3 Posts: 891 Forumite
    MrsOstrich wrote: »

    I do have a couple of questions though:

    1. When do I inform Abbey? W hen you've gone BR :D
    2. How much longer can I stay in the house if I'm not paying? How long is a piece of string? It could tae them up to a year or just months depending on how they feel.
    3. Will Council make me bankrupt and how do I find out? It is possible. Councils are doing it more and more. But it is usually a last resort as it will cost them a £1000+ to petition for your bankruptcy. You will get a letter from the court with your date if they do go for it.
    4. How do I find which court serves my area for bankruptcy? .Ring your local county court and ask if they deal with insolvency. If they don't they will tell you which court covers your area.

    That's all I can think of right now but want to thank you in advance for any advice you could offer.

    Hope the call with cccs goes well. Any questions there is usually someone who can answer.

    Also have a look through the 1st post on this thread.
    http://forums.moneysavingexpert.com/showthread.html?t=1056083&page=2
    Namaste DeeDee x
  • Thank you so much deedee...that really helps.

    I will have more questions...I apologise now as I know you've probably been asked the same questions over and over ad nauseam! lol!

    Should I continue to ignore Abbey's calls?

    My OH is working almost 7 days a week just to keep our heads above water. :(
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    MrsOstrich wrote: »
    Thank you so much deedee...that really helps.

    I will have more questions...I apologise now as I know you've probably been asked the same questions over and over ad nauseam! lol!

    Should I continue to ignore Abbey's calls? Yep....if they get too bad to bear tell then "your sorting your financial matters out & will be in touch soon" there is a letter you can send to cease telephone calls but TBH its a little hit & miss if it works

    My OH is working almost 7 days a week just to keep our heads above water. :(

    HTH :D
    We all die. The goal isn't to live forever, the goal is to create something that will
  • philnicandamy
    philnicandamy Posts: 15,685 Forumite
    10,000 Posts Combo Breaker
    Try this.....although its not a guarantee the calls wil stop (9 times out of ten it will work though)

    Company Name
    Road
    Town
    City / County
    Postcode


    Dear Sirs,

    Harassment by telephone

    Account Number: XXXXXXX

    I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing.

    I have verbally requested that these stop, but I am still receiving calls. (Delete if necessary)

    I now require all further correspondence from your company to be made in writing only.

    I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

    If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine.

    Please treat this also as a formal complaint, and send me a copy of your company complaints procedure.

    Be advised that any further telephone calls from your company will be recorded. (**Even if you don‘t have recording equipment!!**)

    Yours faithfully,


    (type don't sign)
    We all die. The goal isn't to live forever, the goal is to create something that will
  • Thank you for that! :) That will come in very handy!

    So...if CCCS do say that I should go bankrupt, do I do it once I have enough money together or do I do it immediately, well once I have the fees together? (I assume as we are both going to do it then we would have to pay two lots of fees?)

    Oh...should my OH stop payments to Spectrum and my £1 token payment to my debt? What about water etc? (Am on a prepaid meter for gas and electric as we got into debt there and are paying that off...not too much longer to go on tose I don't think). I think I will have to pay token payments to BT to keep my line or they'll cut it off completely and I won't have internet! :P
  • Rylynn
    Rylynn Posts: 1,387 Forumite
    You need to pay the most important bills, rent, council tax, water, electric and gas, and also your phone line, have you put up an SOA yet, are you unable to meet the bills listed above? if you are both going BR have you taken advice or not yet? CCCS and Nat Debt line or the CAB?

    Have you checked with your court, to see if it is walk in or appointment only system?

    RL
    Some Days are Diamonds Some Days are Stones,
    Sometimes the hard times won't leave me
    BSC 162:beer:
    Banktupt 22 Oct 2008 at 10am!
  • Rylynn wrote: »
    You need to pay the most important bills, rent, council tax, water, electric and gas, and also your phone line, have you put up an SOA yet, are you unable to meet the bills listed above? Thank you...will do. I have a mortgage though...do I stop paying this? Also do I do voluntary repossession or just wait for them? if you are both going BR have you taken advice or not yet? CCCS and Nat Debt line or the CAB? Not as yet but I am planning to.

    Have you checked with your court, to see if it is walk in or appointment only system? Not yet...still have to find this out.

    RL

    Some of my questions above still stand :
    So...if CCCS do say that I should go bankrupt, do I do it once I have enough money together or do I do it immediately, well once I have the fees together? (I assume as we are both going to do it then we would have to pay two lots of fees?)

    Oh...should my OH stop payments to Spectrum and my £1 token payment to my debt?
  • MrsOstrich wrote: »
    Some of my questions above still stand :
    So...if CCCS do say that I should go bankrupt, do I do it once I have enough money together or do I do it immediately, well once I have the fees together? (I assume as we are both going to do it then we would have to pay two lots of fees?)

    Oh...should my OH stop payments to Spectrum and my £1 token payment to my debt?


    If they have advised BC and thats what you have decided to do, why drag out the misery any longer than needed? Stop paying your Creditors (apart from priority bills (CT, Rent, Utilities ect) and use the money you save from not paying them to pay for your BC. You will have two sets of fees one each, and also two sets of forms to complete again one each.
    "Well, that sounds like a pretty good deal. But I think I got a better one. How about I give you the finger, and you give me my phone call"
    "There is no spoon
    "

    ~~MSE BSC member #172~~
  • I understand that but surely I need to get the money together first, which is why I'm asking? I don't have any savings at all and my husband only get paid weekly, so we would only have the money for bankruptcy in 3 weeks. Won't I also need to save up money to rent another place?

    Sorry it's time frames I'm looking for and this is what's getting me confused. Bit of a ditzy blonde here...lol!
  • 2 adults and 5 kids (18,14,7,5,4)

    Monthly Income Details

    Monthly income after tax......................... 0
    Partners monthly income after tax....... 2080
    Benefits............................................... 250
    Other income.......................................... 0
    Total monthly income..................... 2330


    Monthly Expense Details
    Mortgage........................................... 900
    Secured loan repayments................... 344
    Rent...................................................... 0
    Management charge ............................. 0
    Council tax........................................ 130
    Electricity............................................ 80 Paying off debt on prepayment meter
    Gas..................................................... 80 Paying off debt on prepayment meter
    Oil........................................................ 0
    Water rates......................................... 40
    Telephone (land line)........................... 40
    Mobile phone..................................... 30
    TV Licence........................................ 12
    Satellite/Cable TV.............................. 42
    Internet Services.................................. 0
    Groceries etc. ................................. 480
    Clothing............................................. 20
    Petrol/diesel....................................... 40
    Road tax........................................... 17
    Car Insurance................................... 50
    Car maintenance (including MOT)...... 20
    Car parking......................................... 0
    Other travel....................................... 70
    Childcare/nursery................................ 0
    Other child related expenses................ 0
    Medical (prescriptions, dentist etc).... 30
    Pet insurance/vet bills.......................... 0
    Buildings insurance.............................. 0
    Contents insurance.............................. 0
    Life assurance .................................... 0
    Other insurance................................... 0
    Presents (birthday, christmas etc)....... 40
    Haircuts.............................................. 0
    Entertainment...................................... 0
    Holiday............................................... 0
    Emergency fund.................................. 0
    Sewerage.......................................... 80
    Total monthly expenses.............. 2545
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