Desperate and needing help - Thanks

stokegal

Hi all

It's taken me a long time to finally admit to my debts and I believe that bankruptcy is the best option for me, I'm just stuck of what to do now and have loads of questions if anyone can help - thanks.

My Situation
I'm currently a single mum off on maternity leave with my 6 weeks old baby so my income is solely from benefits - Maternity allowance (I wasn't in my job long enough to get SMP), Child Benefit and Working Tax Credit. I will be returning to work in September at the very latest but possibly earlier.

My house was repossesed on the 2nd December 2008 due to my ex partner leaving and refusing to acknowledge that he still had to make contributions towards the mortgage and I couldn't afford the repayments on my own. I am assuming that the house will have negative equity but I have no final figure on this as the mortgage company haven't sold the property yet, or even been to the property since it was repossesed.

I have several debts - will do a full SOA when sorted through them (as I said before, I have only just come to terms with admitting these debts and still haven't plucked up the courage to fully work out how dire things are) but these debts range from Council Tax arrears, credit card, overdraft, unsecured loans, car hp and others
I'm currently living with my mum and my baby which was agreed as a tempoary arrangement as her house is to small to accomodate all of us.

My main questions are what to now???
I was going to sort through all of my letters first to get figures on how much I owe everyone then to contact cccs but I have a few questions too

As house doesn't have a balance owing on it yet as the shortfall from the sale of the house hasn't gone through - if I was to go bankrupt can they chase me for the money later when the full amount owing has been discovered.

I have a couple of joint debts with my ex partner - if I was to go bankrupt, would they chase him for all of the outstanding balance of the debt?

I've seen on some posts where bankruptcy hasn't been accepted by a creditor - I thought that bankruptcy wiped all debts - with the exception of secured crediors (I have none because my home was repossesed), Non-Provable Debts (I have none) and benefit overpayments (I have none)

I have a car on hp with a balance owing - I am assuming that they take this car but my work, when I do return is 20 miles away down the motorway and public transport isn't really feasible, as the train I would need to catch to be at work on time for 8am leaves at 7.06am and the local nursery where I plan to put my son in doesn't open till 7.30am.

I have been looking at previous posts where IPA's have been agreed and because I'm living with my mum - and giving her £35/week towards food, gas and electricity will they count this as outgoings? Also becuse my mum's house is so small I was hoping to rent a property close by so that I could get my son into his own room in a couple of months - I have found a property and they have accepted my application despite me having my home repossesed with a guarantor. I would then qualify for LHA whilst on Maternity Leave. But am unsure now whether I need to go bankrupt before I move out and have a change of circumstances or after? Or whether they'd even let keep enough money each week to move out as I have somewhere to live currently.

When I return to work in September my income will increase dramatically - will they re-assess my situation and make me pay more into a IPA? (I'm assuming that this is the case)

Sorry of this make no sense, it's been a long few weeks with being up all night with a new baby and worrying about all of my debts, I hope someone make sense of it all and help. Thanks

peppa-pig

First of all welcome to the forum. You have a found a very friendly and helpful place where people will always try and answers your questions.

Congratulations on your new baby - lovely as they are they are hard work but at least you are now looking at dealing with your debts so you can become debt and worry free and have a great life with your new baby! (I'm expecting my second in June!).

I will answer the best I can but I am sure someone else will be along later to reply too.

stokegal wrote: »

My main questions are what to now???
I was going to sort through all of my letters first to get figures on how much I owe everyone then to contact cccs but I have a few questions too

You do need to seek professional advice from one the the debt helplines and it would be very useful if you had all the facts and figures in front of you so they can advise the best course of action for you.

stokegal wrote: »

As house doesn't have a balance owing on it yet as the shortfall from the sale of the house hasn't gone through - if I was to go bankrupt can they chase me for the money later when the full amount owing has been discovered.

Any shortfall from the sale of the house will be covered by your bankruptcy as it was a debt incurred before you went bankrupt.

stokegal wrote: »

I have a couple of joint debts with my ex partner - if I was to go bankrupt, would they chase him for all of the outstanding balance of the debt?

Any debts in joints names will be chased by the lenders - I believe this is the full amount of the debt not just his half.

stokegal wrote: »

I have a car on hp with a balance owing - I am assuming that they take this car but my work, when I do return is 20 miles away down the motorway and public transport isn't really feasible, as the train I would need to catch to be at work on time for 8am leaves at 7.06am and the local nursery where I plan to put my son in doesn't open till 7.30am.

I'm not entirely sure on this one but I'm sure someone else will be able to advise you shortly.

stokegal wrote: »

I have been looking at previous posts where IPA's have been agreed and because I'm living with my mum - and giving her £35/week towards food, gas and electricity will they count this as outgoings? Also becuse my mum's house is so small I was hoping to rent a property close by so that I could get my son into his own room in a couple of months - I have found a property and they have accepted my application despite me having my home repossesed with a guarantor. I would then qualify for LHA whilst on Maternity Leave. But am unsure now whether I need to go bankrupt before I move out and have a change of circumstances or after? Or whether they'd even let keep enough money each week to move out as I have somewhere to live currently.

It may be easier to find a new property before you go bankrupt as your credit checks should go through easier. You would also then be able to provide a more accurate statement of your incomings and outgoings.

stokegal wrote: »

When I return to work in September my income will increase dramatically - will they re-assess my situation and make me pay more into a IPA? (I'm assuming that this is the case)

Any change in income has to be advised to the OR. But along with your income rising so will your outgoings as I expect you will then not qualify for so much help paying your rent and you will also be paying nursery fees. You only get an IPA if your disposable income is more than £100 per month after all your bills have been paid. Again, people on here would be able to help you adjust your outgoings to help stop this happening.


Hope this helps for now.

stokegal

Thanks for your reply peppa-pig, I was feeling positive about getting things sorted but have had 2 set backs already this morning.

The first was when a man knocked on my door saying that he was from the car finance company and he had a questionnaire for me as I hadn't been paying. Naively I let him in, he caught me off guard as I was half way through feeding my screaming son and answered his questions - he was perfectly nice and I was up front and said that I was seeking advice about going BR to which he sympathised and advised me to go to CAB, then at the end I asked what was going to happen next he said that they would probably come and take my car. How will this affect me going BR?? I explained before that I work far away from home and need a car to get there, but with no car, even if I was to save up enough money to buy a run around for a couple of hundred of pounds would the OR allow that?

The 2nd knock back was that the landlord of the house that I had seen has just contacted me and said that he has had a 2nd application and he will be deciding who to rent the property out to over the next few days. It took me ages to find a house that I could 1, afford 2, who would accept LHA and 3, be close enough to my family for them to help out

Just want to cry now - I don't think it'll ever end. Want to call up CCCS for advice but as I don't have proper amounts of outstanding debts would they just tell me to call back when I do?

headoutofsand

stokegal wrote: »

Thanks for your reply peppa-pig, I was feeling positive about getting things sorted but have had 2 set backs already this morning.

The first was when a man knocked on my door saying that he was from the car finance company and he had a questionnaire for me as I hadn't been paying. Naively I let him in, he caught me off guard as I was half way through feeding my screaming son and answered his questions - he was perfectly nice and I was up front and said that I was seeking advice about going BR to which he sympathised and advised me to go to CAB, then at the end I asked what was going to happen next he said that they would probably come and take my car. How will this affect me going BR?? I explained before that I work far away from home and need a car to get there, but with no car, even if I was to save up enough money to buy a run around for a couple of hundred of pounds would the OR allow that?

The 2nd knock back was that the landlord of the house that I had seen has just contacted me and said that he has had a 2nd application and he will be deciding who to rent the property out to over the next few days. It took me ages to find a house that I could 1, afford 2, who would accept LHA and 3, be close enough to my family for them to help out

Just want to cry now - I don't think it'll ever end. Want to call up CCCS for advice but as I don't have proper amounts of outstanding debts would they just tell me to call back when I do?

Just gove them a rough idea. Be prepared to wait as they are really busy. You could try your local CAB office, there is a link at the top somewhere that will help you locate it.

Someone will be along shortly to answer your questions. Don't panic;)

mazzatee

Hi Stokegal

Log into cccs.co.uk & go into debt remedy. Its an online debt solution that you put your figures into and it will give you the appropriate advice. Its available 24/7 so no need to wait for an appointment.

jellygirl_2

Hi stokegal - I see you are in stoke - i have just gone br at stoke court today so if it comes to this and you need any advice about the process, I would be more than willing to help. It sounds like br maybe the best solution for you but I would recommend you go to the cccs website and do an online 'debt remedy' - the S oA form on there guides you through what you need to live on each month and therefore what you can or cannot afford to pay regarding any debts. They didnt give me right advice but the form did help me to get a handle on my situation - hope all goes well for you and your baby.

lisamummytoarchieplusbump

hello and welcome aswell

have you tried contacting you local council on whever you would be accepted for a council house? i know getting your house repossed is classed as making yourself intentionly homeless but you could explain your situation on the relationship breakdown and overcrowding in your mums home they maybe able to help you. worth a try all they can say is no.

have you checked out the website entitaled to it may give you abit of info if theres something your not claiming. ie £500 sure start grant. social loans etc may help you towards buying a cheap run about till you get back on your feet

if you cant find all the details of your debts just do a rough guess for the CCCS, and check your credit file to see what companies you owe to and chase it up that way

also when you do go back to work, we will all help you with your new SOA as obviously working you will have more expensis. ie petrol childcare

lisa

lisamummytoarchieplusbump

sorry just red your post again does LHA mean housing benefit? so does that mean the council have already refused you a house??? if they have you can appeal. as obviously it wasnt your fault your OH has left you to deal with it all

stokegal

lisamummytoarchieplusbump wrote: »

sorry just red your post again does LHA mean housing benefit? so does that mean the council have already refused you a house??? if they have you can appeal. as obviously it wasnt your fault your OH has left you to deal with it all

Hi Lisa

Thanks for the advice

LHA is local Housing Allowance - It's housing benefit for when you are renting privately. Unfortunately my local council are that short of properties at the moment it is likely to be months before I get a house with them as overcrowding is seen as a low priority. A friend of a friend is a housing officer for Staffordshire Housing and has had a lot to do with the local council and informed me that there requirement to be a band 1 priority is Homeless, currently living on the street, with no family to house them. I am extremely lucky not to be in that situation and whenever I have contacted the council about housing they tend to push you towards renting privately and then claiming LHA from them.

So far as any grants are concerned I earnt too much last year to qualify for them (it's so frustrating as I lost my job and had to take a job at a much lower salary so my salary this year when I go back will be half of what it use to be)

Jelly girl - Thanks for your advice too - I read your day at court before I saw what you posted on this thread and I though how easy you made it sound and hoped that day at court goes as smoothly.

I have one question though - when it says that you didn't qualify for an IVA and that was a factor to you going bankrupt, how do I know if I can qualify for an IVA and can they refuse Bankruptcy?

jellygirl_2

stokegal wrote: »

I have one question though - when it says that you didn't qualify for an IVA and that was a factor to you going bankrupt, how do I know if I can qualify for an IVA and can they refuse Bankruptcy?

I knew before I spoke to Nat Debt Line that I didnt qualify for an IVA - I had no money to pay one with - I couldnt pay my minimum payments after essential outgoings (including mortgage and secured loan) so couldnt pay an IVA either. I didnt want one anyway as you get tied in for 5 years paying it back - i wasnt sure what would happen to my house also. The judge wouldnt have had time to read into any details of my situation and so I think just asked it in case I hadnt thought of it. I knew br was my only option after I faced up to my real situation. Would have been the same for a DMP too - didnt have any money to pay one with. hope that helps:)

lisamummytoarchieplusbump

no the only reasons of the judge refusing BR is you are not insolvent or havent took proper advice.

you do not have to go into and iva and have that fail before applying for BR.

if your debts are over £750 and your debts outweigh your assets your are infact insolvent so therefore are able to apply for BR.

you maybe able to get the court costs for free if so then you will only have to pay £345 as the court costs will be waived if not then its £495. have a look at the sticky at the top for fee remission