Almost there

BrightonLass

I have been considering a BR for a few months now and am almost at the stage of starting the ball rolling. This forum has been brilliant and am very thankful for all the information contained here. I am still in a bit of a muddle as to the order I should do things. Probably best to give some background here...
I got into debt around 13yrs ago. Up until this year I have always had a well paid job in London and managed to keep the payments made. But that was all I ever did... just made the minimal payments. The more I spent and paid on my credit card the more the bank upped the limit and then offered me a loan to pay it off. And so the cycle started.
I have ended up with 3 loans (RBS (1), Egg (2)) + 1 credit card (MBNA) with a total debt of £39k. 3 years ago with the help of CCCS I offered my creditors a debt management plan to cancel out the interest and payoff my debt. I was still offering a healthy sum and I wasn’t behind in any payments. Egg and MBNA readily accepted this but I had loads of problems with RBS. RBS were the straw that broke the camels back with shoddy customer service leading to my offer of a DMP. 2 years later (and still paying RBS the contracted amount), dealings with 3 offices (none knew what the other one was doing) RBS sold on my debt despite me doing everything I could to get this sorted. I had letters from 3 different offices requesting the same info and neither office confirming they had received it. In fact I had no response from RBS even when I sent all the forms in. They then provided the new debt company with an incorrect address so I didn’t receive the forms they requested (which were the same as what I had provided RBS in the first place). I have ended up with a CCJ as a result from my dealings with RBS and with the courts agreeing to my DMP. I thought about contesting it, the letters clearly show the wrong address, but I didn’t have the money for legal fees. To be honest... RBS did me in.
I also now have a mortgage of £150k with Northern Rock (taken in 2005). I was upfront about my financial status and was asking for a 100% mortgage. It was accepted and based on my continued employment and regular overtime it has been OK. Now, however, I have been made redundant and after this month can no longer pay my mortgage or my DMP. I want to include my DMP and mortgage (including any neg. equity once sold) in the BR.
I have all the forms to fill in and know about the costs. I have about £5k in cash to move on with my life, move to a rented flat and get the BR done. I may have to pay 6mths rent in advance as I do not have a job at the moment. I already have an Easy Cash account with the Halifax which I have had since the DMP.
My question is “What do I do first”?
Do I move into rented accommodation/stop my DDs/and then apply for the BR?
or
Do I get all the cash out of my account/apply for the BR/stop the DDs/stay in the flat till it is repossessed?
Am not sure which way to go... I am ready to do it though... phew!

MicheH

Aw, You'll probably know us already but welcome (and keep posting because it helps!) I can't really say what you should do for the best but i'll tell you what I did.

We're living in our mortgaged house and still were when we went bankrupt. We applied for the BR which was a 4 week wait till court date (that was just our very busy City though, other courts I've read have a faster turnaround, some even drop in) We cancelled all direct debits before the court date as we knew we were not able to use our accounts (heavy overdrafts on all of them) afterwards - luckily our court date was 10th Aug so all payments had come out and giving us time to set up new DD's with new Coop Acc.
We then stopped paying our mortgage to save for rented acommodation.

I have to say that findning a landlord and in fact an agency that would take us on was extremely difficult once we had the BR on our heads. We are very lucky and very fortunate to find the considerate people we're dealing with to get our rented home.

I don't know if finding a landlord before bankruptcy is without it's problems either as I have read the OR may contact your landlord to check payments etc. Also, to check the letting agreement if you move before BR, maybe clauses in there which will 'null and void' anything once BR.

I just don't think there's a right answer for it, which ever way there's bound to be upset, frustration maybe even anger at the 'system' beause you know deep down you're lovely and mean no harm to any one.

Hope my post hasn't upset you. It's hard being an undisclosed bankrupt in the early days but every hurdle has a solution. I firmly believe that and you know what, I never ever regret going bankrupt.

MicheH

Oooooh should have said that renting would have been much easier if we had a guarantor.. but we didn't - that's why it was so hard!

Do you think you could get a guarantor?

BrightonLass

I will be lucky enough to have a friend rent me a room to help me out. Am just wondering how long I could stay in my fat before moving out. I do feel like crap over all this, in fact have felt crap about it for years now. But, I do know it is for the best

MicheH

Ah well, We have defaulted mortgage payments for two months and there's no sign of any reposession yet. If you've some where to go then you're worry free really. We saved up our supposed mortgage payments for rent. Don't know if you're meant to do it but OR didn't say anything about what we had to do to move into rented

MicheH

And feeling horrible about what you have done subsides too - anti BR out there will have the daggers out with me saying that but i'm allowed to air my views in support to help you feel better. So there!

Honestly keep posting though because it is a lovely support group here, they help you see that you really arn't alone and can inject a bit of humour when things get tough.

BrightonLass

Thanks. I'm also a bit worried they'll take the £5k. It really is all I have left

Bethankim

Hi and welcome,

Have you been back in touch with CCCS to look at your options and look at bankruptcy, if not CCCS you can either get in touch with national Debt line or CAB, a condition of Bankruptcy is taking professional advice.

That really needs to be your starting point.

Beth

BrightonLass

CCCS is already aware and have been with them throughout the DMP. I just wanted some independent advice on the order of things based on peoples experiences

BrightonLass

Well I’ve had an afternoon of trawling this site and I think I’ve completed my day-by-day plan to go BR this month. Once again this site has been brilliant.
So far have come up with this:
Mon 07-09-09 Call CCCS and formalise intention to go BR
Fri 11-09-09 Cancel direct debits and remove all cash from existing account. Stop paying
mortgage and DMP (payment due 1st Oct)
Mon 14-09-09 File petition with courts for BR/ Open new bank account
BR/OR and meetings/appts
Tue 15-09-09 Setup direct debits (utilities etc) from new bank account
01-11-09 Move into rented accommodation
If you don’t mind, I’ll hang around here and update over the next month. I have a good friend who I have told about my debt and the plannd BR but it helps chatting with those who have experienced all this. I still have some friends to tell but I’ll do that when I get myself through this. One step at a time...

debtinfo

Just a warning, if you have the £5,000 in the bank when you go bankrupt then it will be taken of you, The OR will not object is you spend the money pre bankruptcy, but only on the essentials, rent, food etc