Bankruptcy - before or after repossession

dottypops

Hello – new here and have been looking through the threads picking out information and advice.

My tale of woe is a long one; ( this is the short version) crux of the matter, my other half not worked for the last 6 months - no evidence of him obtaining work in the near future (building trade) – he also owned his company which went under and he filed for bankruptcy a year and a half ago, therefore not many building firms (any that have enough work that is) don’t really want an ex director of a bankrupt firm! His firm went under at the height of the credit crunch due to his contracts with other companies either being pulled or they went under too – terrible time for the property/ building sector, which left us in debt and with no further work coming in well…. Since that time been living on my savings and handouts etc from very understanding and loving families.
I have a mortgage in my name only; problem is for the last 6 months, it is only been my wage coming in – he has received no money in benefits although for the last 2 months I have since received working tax allowance etc.
Have tried everything – tried to sell the house, another 2 houses where I am have been on the market for over a year too – just not selling. Paid what I could to the priority debt as when I had the money, have taken them all the way with me buy regular contact but situation is never going to get better unless I am lucky enough to have a big win on the lotto!

Trouble is even with the benefits, my mortgage, secured loan, council tax and my DMP to unsecured lenders is more than my take home salary. This is before I even pay another bill. I have no option but to go down the sequestration route as I am totally insolvent. I have arrears on the mortgage, the loan and Council tax. When I spoke with the mortgage company 3 months ago they advised that it was now in litigation – and I would be hearing from the solicitors within the week - they have since written to me asking me if I can again confirm that I cant make the mortgage payments?! Time wasted! I so wanted them to push for repossession and bankrupt me.

I have received money from my parents for a deposit on a rented house which we get the keys for on the 1 August.

I had a DMP since June last year for the unsecured stuff which was in my name to help see us through the difficult period and try and relieve some of the strain on the finances. This is the first month I have not paid – due to needing money for the move etc. The phone calls have just started!!

What I would like to know is …
Should I apply for sequestration myself – am I able to when not one of the companies have a charge on me yet?
If not; do I keep the house(ie not hand the keys back and let them repossess through the court) – will they then bankrupt me and if yes will it be registered at my owned home and not the rented address as I really would rather that the landlord not find out.

Any advice and or direction would be really appreciated.
Thanks

So_Sad_Angel

Hi dotty

Welcome along. What a tough situation....<<hugs>>

I personally don`t know much about the Scottish system (as you mention sequestration) but there are a few who have experienced it & know the process.

Have you been in touch with the debt charities again? Just get as much info as you can!.

Angiexx

dottypops

Thanks for your reply Angie;

Yes I have spoken with the debt charities; but still really confused as to what to do best. I really want to just go through the motions, move home and bring some sanity back into my life for the sake of my kids and I suppose want it to happen as soon as possible!!

I would rather not follow the sequestration route; but it has been a catch 22 situation, because my other half isn’t working and not enough income now coming into the home to cover to the mortgage etc, I cant even enter into a trust deed either which I did look into too and had some advice on and ironically, if it wasn’t for the state of the economy, and the housing market being what it is, I would have been in the position to pay off most of my debts, if I could sell my home! Which I have been trying to do!

The mortgage company have been great, I cannot fault them in any way as it is important that you keep them on board at all times. They just have been a bit slower in taking action than I would have liked I suppose!

Until 2 years ago, we had a happy life, yes mortgaged to the hilt but could afford it and could afford to pay my credit cards etc. People just never really think that this will ever happen to them!

My main remit is to remain positive from this and come it a stronger person for the sake of my kids who this has affected too after all it is their home that they are losing too.
I just seem to be running in circles with this!

dottypops

Just had a charge of payment served today for outstanding council tax! I presume this means that I can petition for my own sequestration now ! I actually had started paying - came to an agreement with them - with 2 payments having been made - obviously not in thier timescale! They refused me any relief when my husbands business failed and he was sequestrated and even when i informed them that he was signing on and i was receiving tax credits etc they still refused any relief. My council tax is in the highest banding. But on wards and upwards!

The thing that worrys me however is their right to carry out an attachment of earnings? Will they be able to do this before sequestration? I am moving to a rented house in the same Council area in 2 weeks time. I will have to pay 2 months rent in advance plus another exorbitant deposit for my lovely dog. Get paid at end of the month - this is the only means that I have to pay for the rents, deposit and the actual move etc.

Will obviously pay Council Tax for new property as I am led to believe that the Landlord notifies the Council.Will this be yet another problem?