Help/Advice Needed

pleasehelpmebedebtfree

Hi Everyone!

I've decided to seriously consider bankruptcy after speaking to a company online about my debt (can't remember the company, i have a memory like a sieve)!

Basically, here are my outstanding debts:

1. HFC Bank - £138.00
2. Santander Bank - £2799.00
3. Welcome Finance Secured Loan - £21677.00
4. Santander Mortgage - £99841 (House repossessed on Dec 10th)
5. Alliance & Leicester Loan (Now Santander) - £6038.00
6. Capital One - £2514.00

With the house being repossessed recently, i haven't heard anything since the solicitors sent me the letter stating the repossession date of 10 December 2010. Therefore, i don't know if they have resold the property, or what they are doing with it. I am aware that they have an obligation to get the best possible price on the resale, but i have a feeling i will be left with a rather large shortfall.

Also, the mortgage and the welcome loan are in mine and my ex partners name. I don't speak to my ex and don't have any idea of where he is currently residing, so i cannot contact him to speak to him about it.

I also have 3 CCJ's against me..... it just gets better, doesn't it!?!?!?

Basically, i know i have been very stupid with money (or lack of it for using credit cards and loans!) and want a fresh start. However, i have some questions:

1. I have a full time permanent job and am currently earning £21K per year. The amount i come home with each month is £1324. I live with my parents, therefore don't have a massive amount of rent to pay. I do, however, owe my Dad a large sum of money and also my Grandmother which comes to approximately £500.00 per month - i am unable to prove this though if needed???? How much do you think i would have to pay each month towards my debts once my bankruptcy is in place?

2. Is my employer informed of my bankruptcy situation?

3. I understand that after approximately 1 year you can get discharged from bankruptcy - what does this mean exactly?

4. When the six years are up - how will my credit file look? Will the bankruptcy still show?

5. I have a basic bank account with cardonebanking.co.uk and have to pay a monthly fee for the priviledge. I also opened a Natwest step account which i put some money into each month. I am curently considering closing the cardonebanking account and using my Natwest one full time. My wages as of January will be paid into my Natwest account. I get paid on the 24th of each month and wonder when the best time would be to apply for bankruptcy as i would need to clear my bank account. However, if the IS close my bank accounts how will my wages get paid to me????

I am sorry i have so many questions but i really need some answers!! Any help you can give would be useful. I have been looking on the insolvency website etc, but i just want to speak to people about it who are going through it or have been through it on a more personal leve.

Thanks in anticipation!

Flyright

In bankruptcy you will not be able to repay any debts owed to family and friends, you will need to declare them as creditors.

Are any of the debts you listed joint debts? I ask because the other person (if not bankrupt) will become liable for the whole debt if you do enter bankruptcy.

debt_doctor

Hi Everyone!

I've decided to seriously consider bankruptcy after speaking to a company online about my debt (can't remember the company, i have a memory like a sieve)!

Basically, here are my outstanding debts:

1. HFC Bank - £138.00
2. Santander Bank - £2799.00
3. Welcome Finance Secured Loan - £21677.00
4. Santander Mortgage - £99841 (House repossessed on Dec 10th)
5. Alliance & Leicester Loan (Now Santander) - £6038.00
6. Capital One - £2514.00

With the house being repossessed recently, i haven't heard anything since the solicitors sent me the letter stating the repossession date of 10 December 2010. Therefore, i don't know if they have resold the property, or what they are doing with it. I am aware that they have an obligation to get the best possible price on the resale, but i have a feeling i will be left with a rather large shortfall.

Also, the mortgage and the welcome loan are in mine and my ex partners name. I don't speak to my ex and don't have any idea of where he is currently residing, so i cannot contact him to speak to him about it.

I also have 3 CCJ's against me..... it just gets better, doesn't it!?!?!?

Basically, i know i have been very stupid with money (or lack of it for using credit cards and loans!) and want a fresh start. However, i have some questions:

1. I have a full time permanent job and am currently earning £21K per year. The amount i come home with each month is £1324. I live with my parents, therefore don't have a massive amount of rent to pay. I do, however, owe my Dad a large sum of money and also my Grandmother which comes to approximately £500.00 per month - i am unable to prove this though if needed???? How much do you think i would have to pay each month towards my debts once my bankruptcy is in place? Your parents are a creditor and their debts will form part of your BR. You will be allowed all reasonable expenses against your income, and if you have a surplus of more than £20 then all the surplus will be taken in monthly payments for 3 years.

2. Is my employer informed of my bankruptcy situation?No, but you will get an NT tax code that requests your employer not to deduct any further tax until April 6th 2011. This might make your employer think you are BR but there are many reasons for an NT tax code other than BR. If you delay BR until just before April 6th then you will not get an NT code.
3. I understand that after approximately 1 year you can get discharged from bankruptcy - what does this mean exactly? You will not be under the restrictions of BR, ie borrowing restrictions, company directorship etc.

4. When the six years are up - how will my credit file look? Will the bankruptcy still show? Your Br should be removed from your credit file after 6 years but you may have to do some 'cleaning' yourself (see credit clean up sticky)

5. I have a basic bank account with cardonebanking.co.uk and have to pay a monthly fee for the priviledge. I also opened a Natwest step account which i put some money into each month. I am curently considering closing the cardonebanking account and using my Natwest one full time. My wages as of January will be paid into my Natwest account. I get paid on the 24th of each month and wonder when the best time would be to apply for bankruptcy as i would need to clear my bank account. However, if the IS close my bank accounts how will my wages get paid to me???? Nat west may close your account, although my experience is that they are becoming more BR friendly - but that might just be locally. Safest is to open a new basic account with Barclays or the COOP.

I am sorry i have so many questions but i really need some answers!! Any help you can give would be useful. I have been looking on the insolvency website etc, but i just want to speak to people about it who are going through it or have been through it on a more personal leve.

Thanks in anticipation!

You need to get advice from a debt charity before you proceed with any debt remedy.

DD

alastairq

Hi.....I would recommend binning cardone....and Natwest, for that matter....after you have opened one or more BASIC accounts with Co-op or Barclays..[Co-op Cashminder account]...

With the Co-op, you get full internet banking...just a thought.

[The IS dont' 'close' accounts, it's the banks that do that..call it 'fits of pique?']

Although living with parents, [if you decided to go down the BR route] you will be allowed a reasonable rent....based on rents locally...as part of your SOA.

The family debts I think will need to be 'proved' to be included in a BR....?

Re-payments will not be allowable...

fiveyearplan

You will still be allowed to pay your parents a reasonable rent and of course have your own living expenses. Why don't you fill out an income and expenditure and we can see what it looks like?

fiveyearplan

Oh and most importantly - do NOT pay anyone for debt advice. Go to one of the debt charities listed in debt doctor's signature. They will give you impartial advice.

pleasehelpmebedebtfree

Ok, thanks for all your information so far....

My outgoings would be:

Rent (to parents) - £125 per week incl. food & Bills
Phone - £30.00 per month
Petrol - £50 per week - commuting to and from work

I'm not sure what else could be included in living? I'm guessing they would allow me some money to spend on clothing or emergency funds???

I come out with over just over £1300 per month, so i guess they will be taking a big portion of that?????

I just want to wipe the slate clean and as soon as possible so that in 6 years time i can apply for a mortgage and have my life back.

debt_doctor

Hi,
Yes you could put say, £50pm for clothing and the same for personal expenses. Don't forget your car insurance, MOT, road tax and maintenance (prob £1000 per year maintenance) plus holiday fund at £20pm and hairdressing at £10pm.

Always claim for everything you can!

DD

pleasehelpmebedebtfree

Ok... Can i claim for holiday funds?? What else is there? I just need to establish if i went BR what money i would have. I understand that i would pay money for 3 years?

debt_doctor

Have a read here from 31-7-18...........

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part2/part_2.htm

DD