Giving Back Keys

GracieP

hethmar wrote: »

I feel the OP has enough on her plate already and needs some positive input.

I can understand that, but the OP is considering taking one of the worst options possible. They need to understand the full implications of what they are hoping to do.

Conrad, not everyone can go bankrupt. It can affect employability in certain professions. And with banks tightening their lending criteria it could be a very, very long time before they could get credit again. What has happened in the last decade is not any indication of what will happen in the near future when it come to availability of credit.

ruggedtoast

Conrad wrote: »

Ok I have real world experience of this, or rather clients do.

If you go bankcrupt, nothing bad will happen, although the Daily Mail types will give you all sorts of nonsense on this. Giving back the keys and going bankcrupt based on my real experiences means the following;

1) The lender will not be able to persue you for any debt

2) You CAN still operate a Bank account. Clients did so with The Woolwich and others. As ever if you follow every tenet of every rule then I suppose there is a poosibility you cant operate a Bank account, but again thats not the real world experience

3) Life goes on! My Brother went Bankcrupt and was cleared just 1 year later and then took out a mortgage! Sure mortgages are hard to come by for now, but that will gradually change and in any event you probably do not want another mortgage for some years to come.

4) My Brother walked away from a wall of debt and learned to live without debt. Hes now a very happy chap and glad, yes glad he went Bankcrupt.

5) No he did not have anything seized by Baliffs. At the hearing they explained they had a few goods including a car but the order precluded any seizures as the family would have suffered as a result (for example no car for work, no TV for children)


Si in a nutshell you get a lot of clapped out bar room advice on these forums. All I can tell you is what I have witnessed with my own eyes.

I have no real world experience of this (touch wood), but I'm inclined to agree with you! Presumably bankruptcy exists to protect debtors who have no hope of paying up from creditors who would never leave them alone otherwise.

Your credit rating would be pretty ruined afterwards but presumably it already would be to have got to that point anyway. Unless I'm missing something?

alwaysonthego_2

I always advice my clients in a simlar postion to the op to;

1) Talk to mortgage company: maybe change mortgage payment type, take payment holiday if in contract, negotiate lower monthly payments.

2) Put house on the market for sale.

3) Priorotise debts, i.e pay mortgage over credit card bills etc. I usually will help client look at their incomings nad outgoings and look at their debt and any unpriority debt (credit cards etc) will send lower payment offers depending on client's circumstances.

4) Do a benefit check to see if client is recieving their full entitlements

I would really advice you getting rid of the property yourself otherwise you could be left with a bigger debt, though it will be unsecured. Go back to your cab and ask for further help!

dopester

Conrad wrote: »

4) My Brother walked away from a wall of debt and learned to live without debt. Hes now a very happy chap and glad, yes glad he went Bankcrupt.

5) No he did not have anything seized by Baliffs. At the hearing they explained they had a few goods including a car but the order precluded any seizures as the family would have suffered as a result (for example no car for work, no TV for children)

Si in a nutshell you get a lot of clapped out bar room advice on these forums. All I can tell you is what I have witnessed with my own eyes.

You sure do! Still congratulating yourself for you house purchase last month?

BTW - Would this be the same brother as the one you were glorifying in your lecture about fancy off-the-books earnings and side-foreigners the other day, in your economy where everyone rakes it in big-time?

Conrad wrote: »

* My Brother is an employed HGV driver and a self employed gardener. His official earnings on Govt stats would register about £25000, yet his take home pay is about £800 per week, which if you gross up with normal employees higher rate Tax equates to £65000 or so.

* Electrician client takes home around £500 per week employed, but does on the side work for another £300 per week. Official stats have his earnings around £35000, but he is on the equivolent gross income of over £70,000 (as only taxed at basic rate)

http://forums.moneysavingexpert.com/showthread.html?p=15403415#post15403415 :rotfl:

By the way, I could have taken the full post apart on almost every example you gave. How are Volvo truck sales doing by the way? You think gardening and dry-cleaning is doing well? Should I mention the electrician who rang me last week asking if I had any work on, or putting his name about for contracts going? Old-world.

Sorry OP.. this does not helpfully contribute to your issue but needed to be said.