Other options?

Eric_the_Viking

Hi all...

I have a huge dilemma and am well and truly stuck! Basically, i'm a Police Officer who, through no fault of my own, has found himself staring at possible bankruptcy.

My partner was previously self employed but her business failed at the turn of the year last year, she was forced to go personally bankrupt but life carried on. Not long after her bankruptcy we discovered she was pregnant with our first child, he was subsequently born and my partner looks after him during the daytime.

Because of her bankruptcy, the onus for repaying the mortgage, personal loan and other bills fell to me, in short, i've not been able to maintain the repayments and our house was repossessed at the start of this year. I'd considered an IVA as an ideal solution, right up until i discovered that secured personal loans cannot be included, our mortgage company (Northern Rock) applied to have our unsecured loan turned into a secured loan just prior to the repossession (apparently it's commonplace)

I've used various online calculators to establish that i can just about afford the repayments on an IVA but with the secured loan also still sitting there, there's not a chance of being able to afford it all. I've made brief enquiries about an IVA but have now been advised by the people i've spoken to that the option is not suitable, nor is a debt management plan, and that Bankruptcy should now be considered.

As a Police Officer, i run a very real chance of being sacked if i go bankrupt, it's not a hard and fast rule apparently but the Police Federation will only quote scripture and tell me that i may or may not be sacked, not a lot of use!

I'm basically wondering if anyone has any other ideas that wouldn't involve me throwing myself on the mercy of professional standards? I may well keep my job as the circumstances are not my fault, there has been no lavish spending, no spending more than i earn and no knowingly obtaining credit without having the means to repay it, it's circumstancial and i should be ok but i'm obviously worried, if there is any alternative i'[d love to hear it as i'm currently heading into a Cul-de-Sac...

Sunnylooloo

I am so sorry to hear of your situation.

I can't really be of much help but I will "bump" you up and I am sure somone will be along soon to try and shed some light.

I know you said you have been advised to go BR but can I check you have spoken with one of the Debt Charities such as CAB or National Debthelpline. I am thinking that CAB might have some knoweldge regarding your career and BR?? Not sure??

Take care

LL

skylight

My dad is a Ex policeman (retired a few years ago) and between us have several friends both in/out and a current one in who is BR. It appears that there has not actually been a police officer who has been sacked due to BR for a number of years despite the policy. The BR friend was informed that the sacking policy tends to be reserved for BR due to fraud or other illegal activities.

But while the policy is in place it's going to worry you just as it did him and you are never going to be sure until you do it.

immoral_angeluk

If you can't go bankrupt because of your job you basically have 2 options here.

IVA
Pro rata payments.


Who is it you've spoken to with regard to IVAs? Have you completed a financial statement? Are all the debts in your name only?

peachyprice

Eric_the_Viking wrote: »

our house was repossessed at the start of this year. I'd considered an IVA as an ideal solution, right up until i discovered that secured personal loans cannot be included, our mortgage company (Northern Rock) applied to have our unsecured loan turned into a secured loan just prior to the repossession (apparently it's commonplace)
.

If the house has been repossessed the secured loans are no longer secured and can be included in an IVA. Don't let NR tell you any different, as they have now taken possession the house belongs to them, not you and you cannot have a loan secured against something you do not own.

HTH

Eric_the_Viking

Guys, thank you for the responses to date, i must say they're quite encouraging, especially the last one... believe it or not we'd just assumed that the loan was secured, it didn't dawn on us that we can't possibly have a loan secured on something we no longer own! We'll be checking that out ASAP... somebody has possibly just switched the light at the end of the tunnel back on!

Regarding the other replies:

We've previously spoken to the National Debt Adviceline although it was not they who suggested bankruptcy as an option, at the time of talking to them the loan was unsecured and so they planted the seed for an IVA. The advice regarding bankruptcy came from one of the many firms we've contacted regarding an IVA, i simply received an email advising me that they couldn't help and that as a debt management plan, at a rate we could afford, would take 14yrs to clear the debt it would be in our interests to go bankrupt ASAP.

My worry relates to my job, i love being a Police Officer but, as has been mentioned, i won't know how i'd stand until the process had actually taken place, we have an internal body called Professional Standards who investigate such things, they'd become involved as a matter of routine and they would reccomend what action, if any, would be taken. Sadly the subject is taboo and so the only way to know the outcome would be to take the plunge, there's not even a chance of an informal 'off the record' chat with a senior officer as each case is individual and there is no precedent.

The mortgage/loan were originally in joint names but, as is standard, we are jointly and severably liable meaning they reveted to me once my partner became bankrupt. The remaining debts are minor, maybe a couple of thousand all told and easily manageable, they too are in my name. The biggest issues are the loan (approx £26k) the probable shortfall in our mortgage once the property is resold (probably around £20k) all in, i estimate a total debt of £50k and 4 creditors.

Many many thanks for the replies to date, in just a few hours here i've found a bit of hope!

immoral_angeluk

Eric_the_Viking wrote: »

We've previously spoken to the National Debt Adviceline although it was not they who suggested bankruptcy as an option, at the time of talking to them the loan was unsecured and so they planted the seed for an IVA..

Who was it exactly you spoke to? What's the site?
There are a number of companies around who are basically riding on the back of national debtline, the charity, by using names such as national debt advice, Debtline Advice etc. Those companies are usually unscrupulous and like to 'sell' IVAs knowing that IVAs make the company a lot of money, as the fees are usually 5-6k...

Sunnylooloo

immoral_angeluk wrote: »

Who is it you've spoken to with regard to IVAs? Have you completed a financial statement? Are all the debts in your name only?

Firstly well done on loving your job! We need more people like you.

Maybe if you could reply to what Immoral Angel has said and post up your SOA so maybe people could then give you some more advice and it maybe that an IVA will be a good thing for you?

Good luck and I hope you make the right decision for you and your family and remember we have all been in very similar situations (still a huge learning curve for me!) and just remember we are all here for some support and answer any questions that we can

Eric_the_Viking

Hi again;

The people i spoke to originally, who suggested an IVA, were nationaldebtline (uk site, i'm not allowed to post links as a new user) but after talking to them (some time ago) we had a look around and came across myvesta it was they who suggested we consider bankruptcy as an option instead of an IVA, and then i came here!

I'm afraid i have no idea what a SOA is (i may be being dim, long day!) but i'd be happy to oblige if someone could let me know?

*Footnote*

I called Northern Rock after reading the previous replies, the lady i spoke to told me that she wasn't in a position to discuss the status of our loan (secured or unsecured) and that she'd have somebody call me back, needless to say, no call.

mikey_burnsey

Why is it that bankruptcy is treated as a disease that must be removed, in most cases it can't be helped, why do companies or in this case old Bill, have to sack ?
What advantages can it bring them, I bet you are a hard honest Copper, and has fallen on hard times, and what you could do with is support not the sack, may I ask how long have you been in the force, you must have a representative that can support you???? I hope every thing works out for you.

Eric_the_Viking

Hi Mikey

The policy is there to protect the public, Police Officers are people just like everyone else and, just like everyone else, they are mostly good honest people. Sadly there are some who abuse thier position because they're on a power trip and there are also others who may feel tempted to abuse thier position for financial gain... in other words, "we know you're skint but if you give us information, we'll give you a bung" that kind of thing. That's why cases are immediately investigated by professional standards.

A Police Officer holds a public office, we serve the people and have to be above reproach if we're to be taken seriously, just like Government Ministers...ahem.

I can understand the policy and the reasons behind it although i don't fully agree with it but such is life. I remain seriously concerned although i have received information during the course of the day that has helped ease some of my worries but there is still a 'what if' hanging in the air.

I've been in the job for a little over ten years and absolutely love my role, if i was forced out because of something as trivial as money i'd be destroyed but rules are rules, i can't magic money out of thin air and circumstances have combined to put me here, such is life i guess. Here's hoping it sorts itself out.