What a mess!!

Sososad

Well here goes! I have been reading the diaries on here for weeks now and now managed to take the plunge to write mine.

Where do i start?

At the end of last year myself and my husband were struggling to make ends meet. We panicked and contacted a dmp company (Hanover Sterling) first wrong move :mad: charged us £250 to set up, they then put us in touch with KLM Associates to enter into a Trust Deed as they felt this was the best option for us. We were both quite nieve to Trust Deeds and i did mention to the IP that I wouldn't do anything that would risk me losing my home, he said yes i know what you mean and certainly didnt go into what would happen if the Trust Deed failed, again nievity i thought the creditors had to accept it!!. Anyway, long story cut short the Trust Deed failed to become protected and the IP said our only solution was bankruptcy and he would send the relevant forms out to us, i said i didnt want to go bankrupt and would be happy to go back to a dmp and try to pay of the debts by ourselves. The IP was okay with this, didnt send us any forms and sent all my shares certificate etc back to us, he then sent me a letter confirming his resignation as Trustee from my case.

Oh yes i forgot to say when telling Hanover Sterling that the Trust Deed failed to become protected and I had to do all the chasing to find out, Hanover Sterling said to me oh yes thats why we stopped using them. :mad:

Not to mention another £440 wasted to the IP

After reading on these sites it appears that he shouldnt have done this or have just left me to go back into a dmp, anyway, he has and we didnt want to go back to Hanover Sterling as didnt want to be paying them commission on what we were paying to our creditors, so we opted to go with Payplan and they said we were fine to go on a dmp with them. Been on the dmp now for about 6 months all going well, but have now discovered that we could have infact went on the DAS scheme through CAB which no one told us about, been to see CAB and waiting to see if we can go on the DAS scheme but no one seems to know. Although having looked on the internet it says if you sign a trust deed you cannot go into this scheme so so confused as i dont know if we are in a trust deed or not, we certainly are not paying anything into a trust deed.

Also frightened to death that one of our creditors will try and make us bankrupt, i work from home (self employed) and my husband shares a business with his brother..... oh what a mess, wish i had found these sites before ever contacting Hanover Sterling:mad:.

Sorry about the rant but i really really feel like im at the end of my tether with it all...........

Tixy

Hi soosad.

Not sure I can offer much practical advice (as I know nothing about trust deeds) but just wanted to say I'm glad you have now found payplan and are using a free DMP service.

Glad you have found the site now. Usually if you are on a DMP and paying what you can afford it is not in the interests of the creditor to make you bankrupt, if you have equity in your house they seem to be more likely to go for a charging order against your house.

Are you managing to keep up to date with your mortgage and your council tax and HMRC (re your businesses)? These really are the 3 key people to keep happy for the best chance of avoiding bankruptcy.

Glad you have now found MSE and DFW and hopefully if you stick around and keep reading you will learn loads that will help you - you are welcome to rant anytime on here!
Good luck.

Sososad

Hi Tixy,

Thank you so much for taking the time to read my long long story, thank you so much for what you have said, it does make me feel a lot better. We are keeping up with mortgage payments, council tax (have never missed) and dont owe anything to HMRC yet. Hopefully we will continue to be able to keep up to date with these and maybe within the next 13 years we will be debt free (here's hoping anyway!!)

Im still waiting on CAB to come back to me its now been 3 weeks since i went to see them which is very frustrating as no one else can tell me much about the trust deed scenario. I keep trying to get through to the CAB but rings out and get a message saying to try later. Tried calling another CAB branch and they say just keep trying. Not having much luck but can only keep trying.

POSITIVE_AND_FOCUSED

Sososad wrote: »

Hi Tixy,

Thank you so much for taking the time to read my long long story, thank you so much for what you have said, it does make me feel a lot better. We are keeping up with mortgage payments, council tax (have never missed) and dont owe anything to HMRC yet. Hopefully we will continue to be able to keep up to date with these and maybe within the next 13 years we will be debt free (here's hoping anyway!!)

Im still waiting on CAB to come back to me its now been 3 weeks since i went to see them which is very frustrating as no one else can tell me much about the trust deed scenario. I keep trying to get through to the CAB but rings out and get a message saying to try later. Tried calling another CAB branch and they say just keep trying. Not having much luck but can only keep trying.

Hi Sososad

Im sure that once you have spoken to CAB you will feel so much better and more in control of things. Feel proud of yourself that you are hanging in there, that your debt free date is 13 years and not longer.

There are lots of great ideas on these sites. Im s/employed too BTW and have browsed on the forums for those who are, and that has been interesting too.

The main thing is you are not alone, you ARE doing v well to be getting sorted out, and you WILL get there. Stay positive!
Everyone here will no doubt support you along the way, and that in itself can make all the difference. Take care

Sososad

Hi Positive and Focused, thanks for taking the time to read and offer support, believe me it is very much appreciated.. Can't talk too hubby about it anymore as he says i just keep going on and i tell him its because im worried, he reckons that as long as we are paying through payplan our creditors wont file for bankruptcy, but then im not too sure.

However, on a more positive not have now been to see CAB and they are happy to put me forward for a DAS plan, hopefully that will happen, although im stressing as this can take as long as 8 weeks its now been 1 week gone.

At the moment work is great i am earning more although i am reluctant to give it all into the DMP as i really feel we need to get some money behind us in the event that we are back in a situation that got us into this mess in the first place.



Emergency fund - £175.00 as at 5th September 2009 :T

Sososad

Yipee, CAB have said that i can go ahead and enter into a DAS scheme they are sending me my financial statement to sign and go ahead with, i am so relieved that doing this will only take 9 years assuming all agree.

Then again the luck ive had im not going to hold my breath yet!

Will keep on posting here's to another worrying 4 weeks.


____________________________________________________________________
Emergency Fund £220 as at 23 September 2009 :T

*Jellie*

Welcome to the site sososad.
Fingers crossed that everything goes well with the DAS and the rest of your DFW journey.

Sososad

Thanks Jellie, handed all the paperwork for DAS into CAB yesterday so hopefully, will all be done and dusted soon :j x

*Jellie*

That's good!
How are your finances going generally? Could it be worth posting a SOA for some advice?

Sososad

Oh dear, just did the SOA would someone mind having a look to see if i have done this correct, even more scarey now that i see it in black and white.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 1000
Benefits................................ 167.47
Other income............................ 0
Total monthly income.................... 2867.47
Monthly Expense Details
Mortgage................................ 592
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 40
Gas..................................... 60
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 88
TV Licence.............................. 12.01
Satellite/Cable TV...................... 28
Internet Services....................... 0
Groceries etc. ......................... 390
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 20
Car Insurance........................... 36
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 75.6
Medical (prescriptions, dentist etc).... 22
Pet insurance/vet bills................. 0
Buildings insurance..................... 36.86
Contents insurance...................... 0
Life assurance ......................... 86.56
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 20
Total monthly expenses.................. 1826.03

Assets
Cash.................................... 0
House value (Gross)..................... 138000
Shares and bonds........................ 0
Car(s).................................. 25000
Other assets............................ 0
Total Assets............................ 163000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 134995...(592)......0
Hire Purchase (HP) debt ...... 25000....(0)........0
Total secured & HP debts...... 159995....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................8232.82...366.......0
HBOS...........................22881.2...494.......0
Hitachi........................1416.75...73.13.....0
RBOS...........................3917.35...89........0
Next...........................564.54....56.56.....0
MBNA...........................11934.4...45.84.....0
Total unsecured debts..........48947.06..1124.53...-

Monthly Budget Summary
Total monthly income.................... 2,867.47
Expenses (including HP & secured debts). 1,826.03
Available for debt repayments........... 1,041.44
Monthly UNsecured debt repayments....... 1,124.53
Amount short for making debt repayments. -83.09
Personal Balance Sheet Summary
Total assets (things you own)........... 163,000
Total HP & Secured debt................. -159,995
Total Unsecured debt.................... -48,947.06
Net Assets.............................. -20,942.06
:mad::mad::mad:

Sososad

Wish i could get rid of our car but it is in negative equity, this would free up £485.00 a month, not sure what to do?