Please help me

LittleJess

I am new and feeling very worried.
What do you do when you have no disposable income ?
I have written to my creditors with a template letter from CCCS and sent each one £1 token payment.
I have sent all the card and loan people CCA requests with £1 fee via recorded delivery 6 days ago and no replies yet.
Because my business has failed my OH and myself now in our 50s find ourselves in a terrible predicament.
We have very large debts mostly in my name.
We are mostly only 1 to 2 payments behind with each debt.
None of the debts is secured on our house thank goodness although their is one business overdraft with same bank as the mortgage.
Should I transfer house to my OH and go bankrupt?
We do have equity in the house but not sure if it would sell at a reasonable price given current housing market.
We are not as yet behind with mortgage or any other priority payments.
MBNA are hounding us via Aegis but I just dont answer their calls.
Can anyone tell me what to expect?

I also have a difficult business partnership [ informal ] to deal with and would appreciate a pointer to some help with that.

Can someone help me ?

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting post http://forums.moneysavingexpert.com/showpost.html?p=17610713"][/EMAIL]

wallopadonkey

the best thing for you to do is go to www.makesenseofcards.com
put your details into the planner it will sort it out for you and give you a button at the end to get it ready for the forum
this is called a statement of affairs (soa)
we will need some information to help you out and i am sure someone with many years of experiance will be along shortly
ta dave

neverindebtagain

I am not an experienced br, went br in Dec 08, but I just wanted to say that you have come to the right place. These guys are brilliant, most of us have gone br on here and some have come out the other side. There will be a lot of questions you may have, just post them on here, and it will all seem one big mess that has no way of being sorted. But it will be fine. You have taken a big step posting on here and we will all try and help you. Have you rung the debt lines, CCCS, National Debt Line or been to your local CAB.

LittleJess

I have been in touch with cccs and have a client number.
They cant do a DMP for me as there is nothing for them to distribute to creditors
Should I put my SOA on here ?
This is just my personal SOA .. I have business debts too

LittleJess

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2 [ 1 at uni 1 going to uni this year]
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 300
Partners monthly income after tax....... 1600
Benefits................................ 80
Other income............................ 500 husbands consultancy work
Total monthly income.................... 2480[/b]
Monthly Expense Details
Mortgage................................ 1500
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 161
Gas..................................... 20
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 35
Mobile phone............................ 150 [ 4 phones ]
TV Licence.............................. 15
Satellite/Cable TV...................... 57
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 30
Petrol/diesel........................... 0 husband gets expenses for this ]
Road tax................................ 0 " " "
Car Insurance........................... 54
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 20
Life assurance ......................... 60
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2872

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 50
Car(s).................................. 7000
Other assets............................ 2000
Total Assets............................ 309050

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 170000...(1500).....0
Total secured & HP debts...... 170000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
card mbna......................14000.....300.......27
card mbna......................11000.....270.......27
card egg.......................12000.....300.......18.5
transcom.......................550.......50........0
ge money.......................1300......100.......19
card...........................800.......100.......12
loan car.......................20000.....406.......12
loan mbna......................9000......492.......8.5
card halifax...................4000......100.......18.8
Total unsecured debts..........72650.....2118......-

Monthly Budget Summary
Total monthly income.................... 2,480
Expenses (including HP & secured debts). 2,872
Available for debt repayments........... -392
Monthly UNsecured debt repayments....... 2,118
Amount short for making debt repayments. -2,510
Personal Balance Sheet Summary
Total assets (things you own)........... 309,050
Total HP & Secured debt................. -170,000
Total Unsecured debt.................... -72,650
Net Assets.............................. 66,400[/b

DON79

LittleJess wrote: »

I am new and feeling very worried.
What do you do when you have no disposable income ?
I have written to my creditors with a template letter from CCCS and sent each one £1 token payment.
I have sent all the card and loan people CCA requests with £1 fee via recorded delivery 6 days ago and no replies yet.
Because my business has failed my OH and myself now in our 50s find ourselves in a terrible predicament.
We have very large debts mostly in my name.
We are mostly only 1 to 2 payments behind with each debt.
None of the debts is secured on our house thank goodness although their is one business overdraft with same bank as the mortgage.
Should I transfer house to my OH and go bankrupt? - this would be seen as deliberately disposing of an asset so definitely do not do this.
We do have equity in the house but not sure if it would sell at a reasonable price given current housing market. - any equity will be of interest to the OR however if only yourself goes BR then your OH can buy back any BI in the house and then it will be safe.
We are not as yet behind with mortgage or any other priority payments. - this is good.
MBNA are hounding us via Aegis but I just dont answer their calls. keep ignoring! or consider changing your phone number.
Can anyone tell me what to expect? - its different in each case but if you ask questions, we will do our best to answer.

I also have a difficult business partnership [ informal ] to deal with and would appreciate a pointer to some help with that. - not too sure about this am afraid

Can someone help me ?

Have added some comments, wil have a look at your soa just now.

Have you had advice about going BR from the debt charities? The numbers are in the sticky at the top of the forum.

DON79

LittleJess wrote: »

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2 [ 1 at uni 1 going to uni this year]
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 300
Partners monthly income after tax....... 1600
Benefits................................ 80
Other income............................ 500 husbands consultancy work
Total monthly income.................... 2480[/b]
Monthly Expense Details
Mortgage................................ 1500 - depending on comparable renting in the area, the OR may look at whether it would be cheaper for you to rent somewhere.
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 161
Gas..................................... 20
Oil..................................... 0
Water rates............................. 100
Telephone (land line)................... 35
Mobile phone............................ 150 [ 4 phones ] - this will not be allowed at this level - max allowed is £60 for home & mobile phones. if these are your son's mobiles, they may have to find a way to start paying themselves or cancel the contracts and get pay as you go phones.
TV Licence.............................. 15 - £12 only allowed
Satellite/Cable TV...................... 57 - not allowed, has to be paid out of any surplus income
Internet Services....................... 20 - not allowed unless essential for business or homework
Groceries etc. ......................... 350 - this is fine if it will only be two of you shortly.
Clothing................................ 30 - seems ok, could increase slightly maybe.
Petrol/diesel........................... 0 husband gets expenses for this ]
Road tax................................ 0 " " "
Car Insurance........................... 54
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 20 - make sure you have accidental damage cover.
Life assurance ......................... 60 - depending on type of policy, the OR may be interested in this.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 - not usually allowed but you can leave it and see.
Haircuts................................ 0 - allowed £10 per adult
Entertainment........................... 50 - not allowed, sorry.
Holiday................................. 0 - allowed! probably £40/£50 is ok
Emergency fund.......................... 0
Total monthly expenses.................. 2872

Have made some more comments, hope this helps you. some things you will just not be allowed and some things will be cut back on am afraid.

also what to do, if it is just yourself going BR, you do not have to put down the full amount of your husbands earnings. total up all the household expense only and split it between you so that you have less of a surplus if need be at the end of your statement.

Donna

meant to say, if you do have any joint debts and only one of you goes BR, the full liability for the joint debt will fall to the other person.

LittleJess

Only the house mortgage is in joint names
All other debts are in either mine or OHs name with the majority in mine.

Can you go BR if the equity in your house is enough to pay everyone off ? provided you can sell it of course.

If one or both of us go BR what happens to the house ? do we lose control of whether we can sell it ourselves ?

We are trying to keep up with mortgage and all other priority payments and so far just managing.
Our mortgage is the ' all in one ' type with a cheque account attached ..a current account mortgage .. will this be a problem ? Would we have to have a new mortgage without a chq account with BR?
If so how would we be able to do that ?
Sorry for all the Qs
Really appreciate your help in this nightmare

DON79

hi Littlejess, if you do have enough to clear all your debts, you may not be judged to be insolvent which is why you need to get advice first, I would recommend national debtline, they are very good and understanding.

The key word is "if" you can sell in this climate certainly.

you would certainly not be able to keep the "one" account facility if you did go BR. the only BR friendly banks that would let you have a Bank account are barclays or the cooperative bank. Not too sure how your bank would go about switching you over am afraid. Maybe call your bank anonymously and ask what their policy is with the "one" account types and see what they say.

Glad to try help if I can.

DON79

just noticed as well that you said you have business debts too. there is a business debtline too which could help, their number is in the sticky too so you could give them a call too.

out of interest - what did the cccs actually recommend for you? Anything at all?

LittleJess

Well the cccs just advised me to write to all the creditors and offer £1 per month . Have done this !
The MBNA accounts are very old so have requested CCA and also for all loan and card debts. Just to see who can actually persue us in the courts.
We are not paying any unsecured creditors at the mo just sending the £1 per month.
We are just concentrating on keeping mortgage etc on course and facing the wrath of the card/loan people day by day.
So far I have not actually contacted my mortgage bank [ Yorkshire Bank ] as not behind at all . I dont know whether to speak to them because I am worried that they will be alerted that we are in trouble and make life even more difficult .
Any thoughts about this ?