help me please

glam_jan_56

hi all of you.im very confused as to what to do next.at moment me an oh considering the possibility of br.in my name 19000 in oh name 12000. over last 4 year this has caught up with us. hubby always managed our money.he is a strong leo so it hurt his pride to tell me recently,we had money worries,at the mo he is paying one credit card to pay another an another,which seems to be a common factor in all your stories.he was asked by the t.s.b.if we want a loan to make it cheaper an they said i actually had the better credit rating,even though i am only on disibility living allowance.an he is my carer.so we did that to try an pay oyher cards off.that was only a few week ago so only paid one payment so far to the loan.we now realise this was a mistake as things have spirralled an illness in the family has made our situation worse regarding money for travelling to hospital e.t.c. the question is we rung debt line to discuss our plight an they actually mentioned br as an option, an they told us to stop paying all creditors? surely this would make it worse,when o.r. asks us what did you do with extra money

glam_jan_56

sure ly you cant just not pay creditors an be a bit easier with extra money you will have an then have to explain to o.r.what did you do with surplas money you will have weekly.also all the hassle from our creditors. we have been advised to still keep paying the loan that we recently took out or they could say we took it out wi no sufficient funds to pay knowingly. this was not the case.however would that come under the act of favouring a creditor.now im really confusedme an hubby arguing we been married 35 years an usually never argue it breaking my little heart.

robsimps53

if you cant pay the debt then you are simpliy insolvent and bankrupcy would be the option for you, i think also that if you are sure that you are going to declare BR then stopping paying the debt would not be a bad thing and the OR would not frown upon this, after all you need money to raise the fees and money to live on

hope this helps

tigerfeet2006

As Rob has said the OR will understand that you need to save for the fees . You are going to have to find £495 each, unless you are entitled to the court fee remission then you will have to find £345 each

From the Bankruptcy Help sticky (a good place to find all sorts out.)

Court fee remission and forms.

• HMCS - Court fees do you have to pay them? (And guidance on completing the fee remission form). (pdf)
• HMCS - Form EX160 - Application for a fee remission (pdf)
• Example application for a fee remission based on gross annual income - EX160 (Thanks to NE Derbyshire CAB)
• Example application for a fee remission based on permitted benefits - EX160 (Thanks to NE Derbyshire CAB)
• Possible assistance with Bankruptcy costs / fees (Thanks to NE Derbyshire CAB)

You may have a bit of trouble with the OR over this loan though.

glam_jan_56

tiger feet why do you say we will have trouble with loan.we did not know how bad our situation was at the time an thought loan would let us pay more cards off which we did .we then still had 4000 in bank but found ourself using this to weekly live

Lensman_2

glam_jan_56 wrote: »

.we now realise this was a mistake as things have spirralled an illness in the family has made our situation worse regarding money for travelling to hospital e.t.c.

Hi again glam jan.

Nice to see you got the hang of posting (well it looks like you did anyway).

What you describe above is a change of circumstances. If you took the loan knowing that you could not pay it back it would be a problem. But taking it on in good faith and then your changed circumstances meant you could not pay it is a different thing.

A change of circumstances has taken me from being a good, reliable debt payer (for all many many years) to probably bankrupt and the great people here.

Good luck.

Jim

tigerfeet2006

glam_jan_56 wrote: »

tiger feet why do you say we will have trouble with loan.we did not know how bad our situation was at the time an thought loan would let us pay more cards off which we did .we then still had 4000 in bank but found ourself using this to weekly live

It is just that you will get a grilling from the OR about the loan and why you took it out. If as you have said that your circumstances have changed very suddenly then you will have no problems with this.

glam_jan_56

lens man you were the nice man who helped me the other night when thought i was going strange. well very strange .hubby in bed fast asleep like men do,an me at wits end telling cat all my troubles,thank god for this site an learning my way round. we will be here a while yet untill we decide to do the deed,courage needed , see ya

Lensman_2

Pleased to help glam jan.

When you are at your worst with stress and worry, take 10 deep breaths and try to relax. (It's one piece of my own advice that I do take...) It will not be as bad as it seems like it will be when you feel that bad, I promise.

With another week or so of help and reading up on here, I bet you will be an expert on what is going on with your finances. To the point that you could post back some help to others in return.

Whatever happens, going through it is never going to be as bad as it looks like it will be right now.

10 deep breaths... relax.

Jim

notfes53

Hi Jan,

If I read your initial post correctly, you were offered a loan by your bank, LTSB, is that right?

I think that this bank is just out for themselves - as we are all now beginning to understand - they are not nice organisations.

I was "offered" a consolidation loan by LTSB when one of their managers intercepted me trying to get authorisation at the counter to take cash advances (robbing Peter to pay Paul) as I wanted to avoid breaching my OD limit and had other credit card DDs coming out of my account that day. I was marched off to a side office and, to my surprise, found that I had a perfect credit rating, even though I was hopelessly in debt. To cut a long story short they offered me a £25K loan there and then, on condition that I use the money to pay off some cards. I felt intimidated and grateful, in equal measure. However the new consolidation loan repayment was greater than the minimum card payments that it replaced and only added to my situation spiralling out of control.

In your statement to the OR (Debtor's petition SOA) just explain that you though that the loan was a good way to manage and reduce your debt and you took it out in good faith, but that you later realised that you couldn't service that loan either. I'd add that I was surprised that the bank allowed you (or encouraged you) to take the new loan. Don't feel guilty about taking the new loan, as long as you can show what you did with the money that was advanced to you. Ideally you will have evidence that you used the loan for consolidation/overdraft repayment, and the OR will not give you any hassle. Of course, I'm assuming that you didn't blow the money deliberately "knowing that you couldn't repay it!":rolleyes:

Provided that you can justify why that recent loan was taken, stop paying all non-essential creditors now - including that loan, and save up your fees and put aside funds to pay for your normal living expenses (housing, council tax, utilities, groceries, prescriptions etc.)

If you end up with surplus funds in cash, then don't worry - the OR will either ignore them (unless they run into high hundreds or thousands - tell them it's your emergency fund) or they will reclaim some of it as excess 'Cash In Hand', that you will have declared in your SOA.

I went BR on 05/01/09. Good Luck with yours. You will feel better, gradually, but you will inevitably carry some guilt and discomfort. This will help you in future to steer away from "credit".

GettingHopeful

Glam if you take BR you will be fine, just be upfront and explain everything, come on this site for all advise, and please try not to worry. It will all be better once the decision is taken - and when you do decide, do stop paying everything - you can't favour one creditor anyway, and if you can't afford to pay then you do need to save for the fees and immediate household expenses and rent etc.

All the very best, we've all been there, and are coming out of it. You are safe and there is nothing really to fear. GHxxx