Got paid today but...

phillymitch69

I'm due in court on Monday at 9:00 and despite squadrons of butterflies and chimpanzees dancing in my stomach, I'm trying to think clearly...ish!

I am £300 in credit today, but this is before next months direct debits go out on the 2nd July. My overdraft facility is £1600.

How quickly will my bank account be frozen?
Should I withdraw my £300 immediately and survive on that? That leaves a zero balance before dd's go and is probably the honourable thing to do.
Part of me is tempted to go overdrawn as a way of sticking two fingers up at a bank that has penalised me consistently and been very unsympathetic in the past. However, that feels entirely wrong and akin to theft and I really want to start afresh asap.
I'm guessing the OR would take a very dim view too?!

What have others in this position done?
Is it a moral/ethical question or have you been pragmatic and taken into account forthcoming bills etc?

I think I know what the right answer is...
...but I'd like some reassurance!

Phil

charliedavis

We took as much as we could, up to our OD limit as we needed it, as we had been using our overdraft each month to live on so could not afford to technically repay the whole overdraft immediately.

That is technically what you would be doing - repaying it immediately in full, which could be viewed as treating them preferentially above other creditors.

If you need it, take it all - go into a bank and ask to take the lot out.

Others may disagree of course!

fatou256

hi philluy many people on this board had max out their credit card, overdraft befoer going bankrupt so they have some fund to pay for all bill and living expenses while you are setting up your new bank account . i have max out my overdraft before going bankrupt my bank wasn't happy but hey they didint hesitate to slap charges after charges !
don't feel guilty about it !


good luck in court you will see you will feela lot better when you come out !

peachyprice

If you've been living off your overdraft every month you need to take your salary out today, once you go BR on Monday you musn't use that account.

If you haven't been using your OD every month then you shouldn't now.

If you've been using your OD every month anyway you're not taking out new debt, so that will be fine. The OD will be included in your BR.

Once you've got your cash out you will have to cancel the DD's and contact the companies. Just tell them you are in the middle of changing bank accounts, ask them to send you a paying in slip just for this month so you can pay by cahs, and that you will give them your new bank account details as soon as you have them.

Once you leave court on Monday go to either co-op or Barclays and open a basic bank account.

HTH

phillymitch69

Thanks to all for the replies.

I have been living off overdraft for a long time; pay comes in to wipe it out and leave a few hundred but by the time the mortgage and bills leave by dd, I am back to square 1. The first three weeks of each mnth, I can generally find enough to live on but the last week is a real strain as there is simply no money at all. I make bread and then have sandwiches for dinner. One week of that is enough and I couldn't imagine doing four if I didn't withdraw all the overdraft.
I have applied over the phone for a cashminder account and am waiting for the application pack to arrive.

Coming home from work used to be something to look forward too but I am writing this in tears and pretty much hyperventilating. I can hold a professional attitude together at work but here at home, on my own now that the OH has left me, it all seems too much.
My IP tells me the ORs seem to be getting stricter these days, especially in regard to house and car. The OR office has told my IP that they would expect me to leave my house so they can force a sale and that my car, worth £3500 according to Parkers, can also be sold and that I will be allowed £2000 for a replacement.
No family, no house, no car, bankrupt...I am really struggling to see the silver linings. I know people survive and I know that there are people worse off but my head is ready to explode...
I know blokes don't like to ask for help and for over two years now I've tried to keep things going and now I'm paying the price. I didn't tell my OH what was going on financially and how desperate I was; she still doesn't know any more details other than when she left. I know I need help emotionally but honestly, I am so ashamed and feel so guilty about everything, I can't face seeing or talking to anyone.
This board is anonnymous enough to hide on, thank god.

Best to all.

fatou256

on a personal issue philly if it a bit too much for you call the samaritan and/ or a freind even family for support .
the samaritan are really good i have use them when it get all a bit too much they are very friendly and non judgemental .
http://www.samaritans.org/
thier phone number
UK: 08457 90 90 90
ROI: 1850 60 90 90
dont feel guilty about it, in this board we have all been there and know how tough it is but put this way you will come out stronger and happier.

and dont feel ashamed you are already taking a big step to sort you debt whih is much more than some other people will do in their life ! so dont be too hard on yourself .

i think it should be good to see your gp to make sure that you are not depressed, maybe counselling will be an option for you to vent out your frustration .

dalip

Hi phil

Peachy has given good dvice in regards to the practicle side of things but the emotional side of bc is another kettle of fish all together. You are unfortunate enough to be loosing a lot more than debt when you go bc.


Just wanted to say a house is only bricks and a home is what YOU make it. In view of your OH leaving you maybe it is not such a bad idea to just up and walk away.

A fresh start is a fresh start. I know you don't realise it now but none of us know what is around the corner and who's to say 12 mths ,3 years maybe even five you will be in a totally diffeent place.

I just know there have been many on here who have been in your shoes and 12 mths later they have no debts,a better rented house,a new partner and some even a better job.

Please do not loose heart. Things will get better.

In the meantime we are all here to listen,advise,laugh and cry with.

Take care sweetheart. Dx

So_Sad_Angel

phillymitch69 wrote: »

I know blokes don't like to ask for help and for over two years now I've tried to keep things going and now I'm paying the price. I didn't tell my OH what was going on financially and how desperate I was; she still doesn't know any more details other than when she left. I know I need help emotionally but honestly, I am so ashamed and feel so guilty about everything, I can't face seeing or talking to anyone.
This board is anonnymous enough to hide on, thank god.

Best to all.

Hi Phil Honey.

We may be anonymous (well almost!) but most of us here have walked in your shoes at some time or other & know exactly those feelings.

I would say to you to `use` this forum as support....when it gets tough there will be someone here to listen to you.

Personally I am a `middle of the night` sort of poster....but seriously please , please don`t feel you have to suffer alone. This board is about how you `move on` & not `how` the situation occurred (tbh thats past & history).

Try & `shelve` the guilt for a while....get your life sorted out & then see what your options are. Only then you can move on & rebuild your life.

Above all I say that you are not alone Honey.....please believe that.

I agree with everything that Dalip says too....the emotional stuff is so important....& remember...keep your sense of humour!! have a giggle & know that no one here will judge you for wanting to draw a line under what has passed before.

Hope that helps....sorry if I have waffled !! bad habit of mine....:D:D

Angiexx

peachyprice

Your IP seems to be painting a very bleak picture for you, perhaps so you have the worst case scenario, and any thing better is a bonus.

How much is your house worth, and how much is the outstanding mortgage, and could you afford your mortgage payments if you didn't have any other debts?

phillymitch69

First and foremost let me say a very big thank you to all have replied to me, either in this thread or via private messaging. I am very humbled and touched that anyone would take time out of their lives for me and can't tell you enough how grateful I am.

I have pulled myself together a little bit...when I was writing earlier, the tears started to flow and my fingers seemed to move of their own accord. I guess I just needed to let go.

Peachyprice, to answer your query, I think I need to tell my story to give a bit of context...I fear that my IP may be right in what she is saying and not just just painting the worst case scenario.

I moved from London to Wales about 5 years ago to be with my now ex OH. We lived in the house she owned and I had a fantastic freelance job, contracting with the NHS and social services with adults with mental health problems or with some form of disability but specialising in 'safeguarding work' - protecting and investigating abuse.
As a contractor with specialist skills, i was in demand and earned nearly a £1000 a week. I was able to pay her mortgage and make many improvements to the house. We had a really good standard of life and things were good.

About 2.5 years ago, I made the now fatal decision to 'upsize' and go to a bigger house. At the same time, my OHs health wasn't good so I encouraged her to give up her job and have a good amount of time off to rest and recuperate.

As luck would have it, I bought a beautiful house at the height of the boom in prices and just a few months before the credit crunch started to make itself known.
The house cost £265000 and I took out a 125% mortgage with NR - they were the only company offering me, a contractor, the ability to get a mortgage and I was genuinely pleased to take their terms, never thinking for a minute that prices would crash or the economy nosedive.
The OH's house went on the market...and there was absolutely no interest at all. She was off work - but, in fairness, actively looking for jobs - so I paid my mortgage of (gulp) £1636 per month plus hers of £500 plus all bills for both properties.
I went from being very well off and financially comfortable, to having nothing at all but couldn't bring myself to tell her how bad things were. I thought, stupidly, I was protecting her from the horrible world and that, without bad news or reality, her health would improve and we'd be happy again. Besides, I genuinely thought her house would sell and that would reduce my mortgage by well over half to a much more affordable level.

Along came the credit crunch and with it the contractor work began to dry up. Why pay so much for someone like me when, you can get others to do it at much lower cost. I guess I have no problem with that.

As a contractor, I had my own Limited Company which paid me in share dividends; tax to be paid at the end of financial year.
Debts began to pile up and I began to be reliant on credit cards and then 'borrowing' from the business just to pay bills.
The strain was enormous and, to cut a long story short, I became short tempered and horrid to live with. I think I had a nervous breakdown... I say think, I never went to the GP, because I couldn't face reality. Over a period of time, I told my OH I didn't love her and that she would be better off on her own.
It sounds really stupid now, but when she did walk out, I was utterly bereft and gobsmacked...I couldn't understand why she had gone. I am so embarassed to say that and I don't blame people for being sceptical; it is the truth though. I genuinely can't remember a lot from that period but she and others have told me how horrible I was, so there is no excuse.

That was ten months ago. I now owe the taxman almost £5000; I owe the business almost £12000. I owe about the same in credit cards. My house has been on the market for six months with just one viewer and at a price of £239000. NR have refused to help other than allow me 3 months payment holiday, which will expire in August. Contract work has all dried up and I have taken a permanent job at half of what I earned before.
So, I have about £30000 negative equity, earn £1900 a month but have a mortgage of £1636. In total my unsecured debts are £66000 (including the NR Together mortgage which included a £30000 loan)

I blame no one but myself and though I understand and appreciate that I musn't look back or feel guilty etc, I can't seem to get past that. I have fought so hard to keep everything going, I feel I have nothing good left.

Having said that, I will survive somehow. I have my health and a job and if I can minimise these bad days, I hope one day to be able to offer support to others. At the moment I am in a bad place; the imminency of court on Monday is terrifying and, in my heart of hearts, I know I will have to give this house up.
That's the hardest of all. It was to be our home and we invested so much work and love and energy into it, so many hopes and dreams... It's hard to think that that is all going and that I am responsible. My guilt is twofold - the way I treated my OH and the fact that after all this time, she is on her own, still looking for meaningful work that will enable her to pay her own mortgage. I have heard that she is in financial difficulty too and I know that if it wasn't for me or my encouragement to quit a stable job, she wouldn't be in this situation.

I'm not going to hide from my mess and I will honestly take on board all the advice, well wishes and 'love' that people are sharing.
Again, I am truly grateful for that.

I'll shut up now.

Best to all,

Phil

So_Sad_Angel

Hi Phil

Thanks for the background. We all feel responsible & most of us can pinpoint the wrong direction taken when that `fork in the road` moment appeared. Thats past now.

......LET IT GO !!!

At least you took a chance...it did`nt work... but you were brave enough to have a go anyway !!

I spent 2 years renovating my dream house & had to face facts when I realised that the whole sad episode was financially beyond me. Its a tough old world. Now a year on...I`m still not BR...(hanging on by fingernail sort of stuff) but realise that decisions need to be made & I too have to break through that pain barrier to move on.

Keep posting...read as much as you can. Theres PM if you`d rather stuff not go online...above all...tell yourself that you are not alone. In fact you are lucky to have found this place...its been such a lifeline to so many..me especially.

Angiexx (ps...anyone got number for `ramblers anonymous` ?? LOL)