The Bankruptcy Club & Supporters Club

sarah_skint

cumbrain male - how much debt are we tal;king on filing for br? As you own your home is there any equity in it?
I feel that i am not that clued up on this sort of question please post your answers though - as someone else should be able to answer it better than me
Sarah

pebbles2791

thanks for that sarah....I think I read earlier in the thread that if you apply for BR via a different court (i.e not the one directly in your area but just outside) then it's ok to do that?

I won't be around until Monday now...but would be very grateful for anyone's advice that they leave.

rog2

pebbles2791 wrote:

I'm new here *waves*....and before I go any further can I just say a thousand thanks that you all take the time to post advice and personal experiences...it's saving my sanity... I've read through the first few pages and am a little bit clearer on things....but I'll start from the beginning by telling you my story. *takes deep breath*


I'm in a DMP via CCCS at the moment, and have been for the past 2 years successfully for credit cards. Until a bombshell arrives....

15 year's ago, me and my then partner purchased a property together, couple of years down the line when I fell pregnant we split up. The property was in joint names, I was young (20) and didn't have the sense to remove my name from the mortgage etc I was just glad to be out of there....anyway, he lived in it for a couple of years after that, missed payments, house repossessed and I was jointly liable for the debt...

He took a loan out with his then partner and paid his half of the debt off at a reduced amount, I wasn't in a position to do so (single parent on benefits)...therefore I negotiated (and I have every respect for the DCA that dealt with me, they have been nothing but reasonable and helpful since I 'met' them)..

Anyway, to cut to the crux of the matter....part of my (verbal) maintanence agreement with my ex-partner was that although my half of the debt was in my name, he would pay the nominal agreed amount that had to be paid each month to the creditor by purchasing a postal order each month and giving it to me with my son's maintence).....he's now been made redundant...and does not have the funds to pay that debt every month..

The outstanding debt is approx £10,000..making my total debt approx £14,000 (jesus..how ashamed am I?)

I rang CCCS to advise them of the 'new' debt and to ask for it to be included in my DMP....the advisor told me on my income and expenditure (I am working as a secretary now for the NHS and the DMP has my SOA and knows what disposable income I have) it will take 20 years to pay off, and advised me to go bankrupt! I was horrified (apologises...no detrement to anyone who has been through it on here...after reading I take my hat off to you all for your courage...but hold my hands up and admit I was one of those who assume bankrupts are 'lepers'.....once again I apologise...it's only through ignorance I thought that..

However, she actually said it was the only viable option I had now.

I'm just coming to terms with the fact that it is my only option now...and would be very greatful if anyone could offer me some advice...


I have read some of the advice on the first few pages of this thread, but to be honest my head's about to burst!

Would be really grateful if anyone could help me with a few questions i have...


She said, in her opinion, that mine would be a 'straightforward' bankruptcy and that I could be 'disolved' in 6 months and 'debt free'...but averagely it is 12 months (please don't quote me, my head is in a whirl and I'm trying to take a lot of things in)

She advised me NOT to open an alternative bank account until I had been declared bankrupt...otherwise the 'bankruptcy' could freeze that account too..

I rely on DD's....My wages are paid in, tax credits...my rent comes out, every bill I have comes out via DD....in all honesty, after I'm BR will I get an account that allows me to set up DD's? that's all I want, no cheque books, no other frills...just standing orders and DD's...

Will it be 'known' that I am bankrupt if I don't tell anyone? No-one knows, except you guys now, my financial situation and tbh....that is the what is crucifying me...the fact that people will 'know'...

I work in the NHS...will I lose my job because I am bankrupt??

My advisor was plain on the phone and is sending me information on bankruptcy....she made it sound like the answer to my prayers...i.e..'dont' go BR you'll be in debt for near 20 years'...go bankrupt it's off your file after 6.....is that true?



Sorry to have rambled on for so long....I really do appreciate any advice/help anyone can give me....

Hi Pebbles and welcome to BCSC

It sounds as if CCCS have given you sound advice - You have been managing your debt, but this 'bombshell', as you put it, appears to make your position untenable. From what you say, Bankruptcy would appear to be your most sensible option, so let me try and answer some of your questions:
The bankruptcy period is one year, although many people would get an early discharge, once OR/Trustee is satisfied that they have concluded their investigation satisfactorily.
During the bankruptcy period, the OR (Official Receiver) may allow you to continue using your existing bank account, or, as is most likely the case, will allow you to open a 'basic' account - these accounts can allow for DDs, depending on bank, but do not allow for any credit or overdraft facility. Normally it is reccomended that, once you decide on bankruptcy, you arrange for salary to be paid into another (perhaps relative's, or your partner's) account and that you open a basic bank account once you have been decared bankrupt.
Working in the NHS you are unlikely to lose your job - in fact you don't even need to inform your employer, unless of course they ask you.
Your bankruptcy will be reported in the London Gazette, and possibly local press, but is unlikely to be noticed by people you know, and anyway, there is little or no stigma associated with bankruptcy - it is, after all, societ's way of dealing with an otherwise hopeless situation.
Once you are discharged from bankruptcy, you will be able to apply for credit, although your bankruptcy will remain on your credit file for 6 years, making it difficult to apply for credit, but this probably won't worry you.
Your bankruptcy will not affect your partner, unless you are financially linked - i.e. joint bank accounts - if you have any such accounts, you should consider closing them, or transferring to partner's name, before filing for br.

sandralovescats

sarah_skint wrote:

i have added them on to my spreadsheet sandra - many thanks, yes I am going br on my own, am just hoping experian pull there finger out and sort out the dissociation between me and the other half! Not that hes got any money either - i found out yesterday he has near on maxed his overdraft - I could kill him!!

So, going br on your own you need to make sure that your expenditure figures are halved.

Also, if any of the Income Support is payable for OH, it needs to be removed, otherwise it just bumps up the income needlessly.

Housekeeping needs to remove one person's food for the month, so maybe take off £120 for OH.

sandralovescats

pebbles2791 wrote:

thanks for that sarah....I think I read earlier in the thread that if you apply for BR via a different court (i.e not the one directly in your area but just outside) then it's ok to do that?

I won't be around until Monday now...but would be very grateful for anyone's advice that they leave.

No you cannot do that!

You have to apply to the Court nearest to you, unless there are very exceptional circumstances.

Or, if you moved house within the last six months you can petition in the District you last lived.

Doushka

I'm offline for a few days and what happens ? you guys dont stop talking Its taken me two days just to catch up and try to retain some of the very useful information/advice that is getting shared here! :T

I'm blitzing my figures today and trying to get organised :rolleyes: as its only 12 days (8 excl w/e) till B day :eek: (only me going b, not my OH)

So be warned, I'm likely to be coming up with all sorts of questions, and later I'll be sharing my soa for your opinions/help




AND..... feeling very unloved.... I've been missed out on the BCSC member numbers Pwease pwease pwease pwetty pwease can I join I pwomise to behave myself

Mike_St_Helens

Doushka wrote:

I'm offline for a few days and what happens ? you guys dont stop talking Its taken me two days just to catch up and try to retain some of the very useful information/advice that is getting shared here! :T

I'm blitzing my figures today and trying to get organised :rolleyes: as its only 12 days (8 excl w/e) till B day :eek: (only me going b, not my OH)

So be warned, I'm likely to be coming up with all sorts of questions, and later I'll be sharing my soa for your opinions/help




AND..... feeling very unloved.... I've been missed out on the BCSC member numbers Pwease pwease pwease pwetty pwease can I join I pwomise to behave myself

Welcome back.. We love ya....

Number 29 for you !

Doushka

question 1 (I suspect of many) and apols if its already been answered elsewhere

The house we live in is in my OH name, I am nothing to do with it, in fact, when he bought the house I had to sign a waiver to any rights (forget what its called).

The way we work it out, cos he's working and I can't due to long term illness, is that he pays the mortgage and I pay the household bills. I guess he pays for most of the food/household sundries too, but I am going to include them (my half) in my soa. I (in theory cos it doesn't always happen what with trying previously not to get behind with paying creditors so OH bailed me out on the household bills) pay money into his account each month and the dd's all come from that account.

Question is, on my soa what is the best way forward? Do I:

1 - show I pay rent to my OH - thus no beneficial interest in the property
2 - show all the household bills but no rent/mortgage
3 - prorata the total household cost (mtg and bills) for the amount I pay?

I'm currently going with the 2nd option as that to me is the most clear. What do you think?

Question 2 - we have a number of pedigree cats. I have them all insured (not with the cheapest insurer I appreciate). Insurance and Food/Litter costs around £200 pm. How do I best reflect that in my soa in a manner that will be acceptable to the OR?

Question 3 - pensions, sorry, I know this was covered recently, but my head hurts and I can't find the reply..... I think they do not take that into account with regard to assets, is that correct?

Thanks guys n gals

Doushka x

Doushka

Mike_St_Helens wrote:

Welcome back.. We love ya....

Number 29 for you !

Thanks Mike, feel betterer already

and how ironic that I should be 29, thats the number of the house I grew up in and if I need a two digit number any time, thats what I use! Fingers crossed its lucky for me

Mike_St_Helens

Doushka wrote:

Thanks Mike, feel betterer already

and how ironic that I should be 29, thats the number of the house I grew up in and if I need a two digit number any time, thats what I use! Fingers crossed its lucky for me

Cool !! You will be fone here... Its a nice place... Even better when your debt free after B...