Finally getting my head out the sand

br_man

Hello all,

I have known I need to go bankrupt for over a year but have had my head in the sand. Pretend it's not really happening. I'll deal with it next week, but next week never comes. Well today is finally the day.

I owe around £38,000 in loans and cards. I started a DMP back in January 2007. I have a property that I rent out but have not paid the mortgage in over 12 months.

I finished my business back in March 09 and have not made any payments since then. I started the process to claim IS and Carers Allowance (i look after my parents) but never completed the claim so I purely live off their money . That said I don't spend much. I have become reclusive, partly down to being a carer, but also I have lost a lot of lust for life so I mainly just eat the same food as they do and surf the net all day.

I do have a property that I rented out until I decided to go BR back in March 09. I have not been paying the mortgage. The property is empty but I have a council tax bill that hasn't been paid. I received a letter last week saying I owe 12 months and that they will take action. That letter is one of the only ones I have opened in the last 12 months. The rest are all piled up. I don't actually know what else is going on. That's how scared, ashamed and generally deflated I feel.

My business also has debts but they were all taken out in my name, despite it being a limited company. The only debt in the business is £500 to my accountant.

I do not know which way to turn. I feel ashamed and generally down with it all. Reading some posts on here I know how people feel.

I just want to face up to it properly and get it nailed, done and dusted as soon as possible. How soon can I get it done?

Please feel free to ask any detail I have missed out that may be needed. Just typing this has made me feel sad and scared and I will have missed something out I'm sure.

Sunnylooloo

Hi

Firstly the things are you feeling are what many of us have felt at some time so just remember you are not alone.

Have you sought advice from one of the debt charities - I found both CAB and national Debtline good - I am sure someone will post links for you (I am useless at things like that)

Please feel free to ask as many questions as you like and people are here to help and advise as much as they can.

Good luck

IF

Hi br_man and welcome, First thing Make a list of all your creditors, debts, assets.
Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial.
They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another.

Please don’t do anything rash take your time and weigh up your options and read everything you can x

Please click on Blue links below.

For ‘essential’ info this is Fermi’s sticky at top of the forum:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

These are the most used Debt charities:-

http://www.citizensadvice.org.uk/index/getadvice.htm

http://www.nationaldebtline.co.uk/

http://www.cccs.co.uk/

More Debt charities also on Fermi’s link:-

http://forums.moneysavingexpert.com/showthread.html?t=1056083

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
If...x

br_man

Thanks Sunny

I just want this to be over as soon as possible. How can I get it done quickly?

I am now nervous in case bailiffs come and knock on the door and take stuff, especially my parents stuff. My fear is that as my parents are elderly they could be affected. I have this fear of leaving the house and the bailiffs coming round. This is especially the case next week as I am off on holiday for a few days to the Lake District.

My dad is in the loop with my situation but my mum isn't as her illness is a mental one.

I am fearful of my name being in the local paper. I have looked at a number of our local rags and haven't seen any bankrupts listed. Have they stopped doing this?

I just generally feel as though I am doing something wrong hence why I can't bring myself round to actually doing it.

I placed my IS and carers allowance claim in 12 months ago but didn't finalize the paperwork. Can I get this backdated?

If I declare bankrupt today, even though my house hasn't been repossessed could I add it to the bankruptcy as a future debt in effect?

In terms of a bank account, it looks as though I need to set one up now so that could delay me going BR.

How long does it take to go BR? As I say I go on holiday to the Lakes a week on Thursday for the Bank Holiday and would love to be walking without it in my mind. It's time I shifted these shackles from my feet. Debts having been weighing me down for 5 years now and the idea of a fresh start is appealing.

br_man

Thanks If for your reply. I will take a look.

Sunnylooloo

Wishes had posted all the links you need.

To be honest if you can see if you can maybe get an appointment at your local CAB office.

As I understand it (I'm not actally BR myself yet going through a long process!!) the forms are quite in depth and probably do take some time to fill in.

I'm bump you up and someone will be along to help you out

Just rembember it is not an impossible situation.

Re:baliffs - are any of your debts with utility companies or council tax? Do you have any CCJ's

I noted you say some is regarding a business - again I will have to leave those questions for someone else to address.

Re: carers allowance - I'm not sure - but I guess you will only find out if you fill and the forms and send them back - it is worth asking if you can get it backdated.

Keep asking as much as you need

LL

br_man

Thanks again Sunny

One of those debts is Council Tax. I have had a red letter saying that if I don't pay within 7 days (lapsed end of last week) they will take me to Court. So I guess I do have a few days grace to get things sorted now.

Am I able to notify these people I am going BR or does that cause a problem? Does it spark them into coming round now?

Sunnylooloo

OK - I think with Council Tax you do need to be careful as I do think they have the power to send baliffs - can someone clarify that for me??

Also personally I would not tell them that you are going to go BR but maybe advise that you are seeking debt advice - again someone will clarify this for me.

Sorry I am not as up to speed as some but this will give you a bump up so someone will be able to help

You have done the best thing that you are facing up to it I know one of the scarest things i did was sit and write down all my debt... for the first time in years and it was so scarey.

At least you can tell your dad as you will need support along the way

LL

br_man

Cheers LL

Thanks again for your help and advise.

It does look a good community here so I'm glad I stumbled across the site. Reading some of the 'other side' stories is warming in this situation.

debtinfo

Hi BR-Man, to answer some of the questions you have raised, the council can and probably will send baliff's at somepoint, if they do we can deal with that later, it s harder for them to do so when the bankruptcy starts, if you want to more quickly the do phone nationl debtline as soon as possible, you MUST have taken advice or the bankruptcy may not be granted, so that is priority number one.

Once you have taken advice and if you have the fee then the bankruptcy could be done within a few weeks. other things you can do to speed the process up are to get on the insolvency service website and start looking at the forms, open your post you need to know who and how much you owe, put them in order, phone your local court, see what type of appointment system they opperate

Most bankruptcies dont go in the local paper any more.

You can usually open a co-op bank account in 5 -10 days

The property shortfall can be added later, just dont sign anything accepting liability when they repossess.

hope that helps feel free to ask questions

br_man

Thanks Debtinfo

I currently live with my folks and will pay them some board once I sort my benefits out.

They own their house outright and I moved back in with them in 2005.

Will they be effected by declaring myself BR? Or is it a case of my debts are my debts?