bankruptcy in scotland

teggy77

hey folks was just wondering if anyone can help ... basically the story goes in 2004 took out a mortgage and a unsecured loan with northern rock .. the loan being £30k ... what they called a together loan (or 130% mortgage... stupid i know )

in 2007 we changed our morgate company and because we broke away from northern rock the interest charges rocketed .... but I had signed the papers and decided to get on with it and continued paying around £280 pm. I have been paying this and have so far cleared off in excess of £20k. In 2007 i missed a payment due to work being slow ... we are in the house building trade and then nooone could get a mortgage to buy a house and work was tough ... I phoned them and explained the situation as they served me swith the letter saying if i didnt they would take me for the lot. The following months I caught up even though I was struggling. Then in jan this year it was the same again and we missed 2 payments tho i did call them and explain. On monday night i was served with a citation by sherriff officers as northern rock decided they wanted the whole £30k back. I phoned them and offered to make the payments to catch up but theyre not interested. After seeking advice from money advice scotland the guy basically said i have no choice... i dont shave £30k so cant defend the action ... let it go to court. The next step is a charging order ... I have asked how I can sort this, the thing im worried about most is my home ... i have 2 kids and would die if anything happened to it... and am so bloody annoyed its went this far with them over less than a grand !!!!! The money advisor told me when I changed my mortgage NR panicked as they lost what asset they should have secured the money againsst which is why this action was taken, they need to secure as much debt as possible and will do anything to do so. We remortgaged in 07 and now with the housing slump Im sure theres negative equity in the house which is also only in my name. I have no other debts and no assets and have no chance of getting my hands on £30k. I have been advised I have no choice but to be bankrupt ... I know I have been told this lasts 1 year but my head was spinning and theres more i should have asked ...

can anyone advise me more .... im making an appointement to go back but need to find out more now !!!!

I have been told i have no equity, no assets, they cant take my hubbies wages into account or his companys as its limited and the debt is soley in my name .... Again I offered to pay this but was told thats not gonna happen as its in excess of £25k they dont need to consider a time to pay and it would take too long anyway ... whats gonna happen to me !!! Is my house safe !!!!!!
The money advisor thinks thsey have shot themselves in the foot, they expected equity in my house and there is none ... if they had have let me keep paying I would have been and they would have got more of their money back .... but theyre pushing for an amount I have no chane in getting !!!!
Any ideas please !!!!!
:(

teggy77

also I have now realised its only 72 months of a 300 month contract I have paid ..... OMG x

weemiss

Hello

Have you looked on the Accountant in Bankruptcy website? This is who deals with personal bankruptcy in Scotland.
Its AIB.gov.uk
The website gives information about property and assets that your trustee will be interested in. I think they have to take into account that you have a family and whether you have an equity in it.

hope this helps
weemiss

teggy77

Aww thank you
I will do this today, When I was speaking to the Money Advisor he has told me the law is changing again soon and that you cannot be forced to sell your house, (in scotland)If a inhibition is placed on it they need to hope it gathers equity at some point. I also have been told inhibition orders have to be renewed every 5 year. Also even if an IO is placed on it, if your made bankrupt the debt is dissolved and the IO is null and void was wondering if this is right. I was there for ages but hoping i picked everything up right !!!

I dont know how it will look in court as I have been paying this albeit some payments were late and I did phone and offer to pay the outstanding amount, but basically they want it all. The money advisor seemed to think that theres really nothing they can do or take from me as I have nothing anyway, but again my kids are all im worried about !!

God I never thought I would se the day they done this !!!!

weemiss

I am in the process of going through the LILA route myself and it seems pretty straight forward. Luckily for me though that i live in a nice council property that they cant touch.

It is very worrying though and it sounds such a scary thing to be declared bankrupt but at the end of the day its there to help people on low incomes to get out of debt that we simply cannot pay back.

Get as much professional advice as you can and then look forward to a fresh start.

weemiss

nikkiandmidgets

wemiss - I am considering going through the LILA route myself - any info you have woud be appreciated as will have to schedule an appointment in with CAB once the kids are back at nursery and I think they are only in my village one afternoon a week...Also I am going thorugh a divorce - do they take future money into acct if my ex who is in Shanghai ever declares his assets which he moved out of this country! I am from scotland, have no assets and in a private rental, living off maintenance payments so dont qualify for income support but do get low income benefits and full housing\council tax benefit - just wondering if I go through the stress of the appointment or just try and hang on till the divorce progresses further - its been ongoing for approx 6 months but hasnt moved very far forward so far! Am a single mum with 2 daughters aged 4 and 5...
Thanks weemiss!