Hi, Please can anyone help? SOA and current situation

RAS

rhubarbarella wrote: »

had a rough estimate valuation of house, which valued it at £138000. we currently owe £139800. so we are in negative equity. which may be a good thing if OH goes BR I think?.

Good thing if he goes BR. You would probably be allowed to buy back the Beneficial interest. The cost was £1 plus fees - about £225 but talk to the mob on the
BR forum to check this out.

rhubarbarella wrote: »

My OH has a credit card with a credit limit of £3000, which currently has no debt on it. If it looks like he is going to go under, can he withdraw that limit as cash in order to pay essential bills if he goes BR as we have no income and then put that debt into the BR? or is that stupid and/or illegal? I just have no idea anymore, but don't want to break the law as well as being bankrupted and I am not sure where we stand on that one?

You should not take on further debt when you are thinking about going BR.

BUT, many BRs put their BR fees on a card and many ensure that they have some cash to get through the first couple of weeks. The ORs expect and understand that people are going BR, not being forced into starvation. They will treat essential bill payments rather differently to weekends away in a hotel.

If he decides to go BR, he needs to end his self-employed status and sign on for Income Support or JSA. Given his current state, JSA really is not a good option.

Do talk to the people on the BR forum.

And please, please rest.

JCS1

RAS wrote: »

Good thing if he goes BR. You would probably be allowed to buy back the Beneficial interest. The cost was £1 plus fees - about £225 but talk to the mob on the
BR forum to check this out.



You should not take on further debt when you are thinking about going BR.

BUT, many BRs put their BR fees on a card and many ensure that they have some cash to get through the first couple of weeks. The ORs expect and understand that people are going BR, not being forced into starvation. They will treat essential bill payments rather differently to weekends away in a hotel.

If he decides to go BR, he needs to end his self-employed status and sign on for Income Support or JSA. Given his current state, JSA really is not a good option.

Do talk to the people on the BR forum.

And please, please rest.

They've recently changed the guidelines for dealing with property. They now do nothing, until 2 years 3 months when they review the situation. If still in negative equity at that point the property will revert back to you with no charge.

With the credit card, technically it might be classed as incurring credit with no reasonable prospect of repayment, and might lead to a Bankruptcy Restriction Order. BUT - the amount has to be material to the overall amount of debt, which I suspect it wouldn't be. They also tend to turn a blind eye if people withdraw cash on credit cards to pay for BR fees.

HTH

[Deleted User]

rhubarbarella wrote: »

Also I was scared to tell them he is suicidal in case they lock him away in a mental ward and drug him up the eyeballs.....

Just to reassure you that this does not occur when someone has 'mental capacity' ie, inpatient treatment might help and might be recommended but people with suicidal ideas but not having delusions/altered reality are rarely the subject of a section & secure units.

rhubarbarella

it looks increasingly as though he will have to go bankrupt. Funny, a couple of weeks ago that seemed the worst thing, yet now we have started to face it all it just does not seem as bad. Still terrifying and very daunting, but not the end of the world. whatever happens we will still have each other.
The side effects from his antidepressents are not as bad now either and he is starting to calm down. I no longer fear that he will kill himself, he has not mentioned suicide for a few days, and today he even laughed at one of my lame jokes! He is also starting to eat again and to get a few hours sleep. Still only about 6 hours a day, but still a vast improvement. What a difference in a week, eh?

I know this possibly sounds daft, but in the last week 8 other business near his have gone bust, and it has made me feel better. That sounds awful, what I mean is, I feel like it is not just that we are failures, or stupid or something, it is a hard time for many people. I feel less ashamed. And that is a big thing for me.

OH goes back to the GP on tuesday and we have a meeting with a debt caseworker on thursday.

This is still a very hard time, my health has suffered and OH is still severely depressed, but I am actually feeling like we will survive this, and a coupld of weeks ago I wasn't able to say that. I am still scared, confused, depressed etc, but actually doing something about it is so much better than letting it all fall apart around me

Thanks guys x

rhubarbarella

update:

We went to see a debt caseworker a couple of days ago. Have left her with all the info and are seeing her again on Weds.

OH had his meds changed as suffering terrible side effects.

Bank have refused to help and won't let us reduce payments or go interest only

Feeling very very down, very stressed, reached the end of what I can think to do.

this is a very bad time.

Siouxsie32

Good to hear from you again. I've followed this thread from the beginning willing something good to happen for you. I'm sorry you're having such a hard time.

Hopefullly the change of medication will help your boyfriend. At the end of the day, as long as you're both healthy, all the other stuff will just be stuff. Yes, what's happening to you is truly awful but sometimes when we let go of what we fought to keep so much, we discover that actually the consequences aren't as bad as we feared.

Is there any chance of you trying to switch off for the rest of the night and getting a bit of sleep. You may feel better in the morning.

Hugs :grouphug:

themull1

You are a very strong person, and you should be proud of yourself. I don't see any stigma in Bankruptcy, and i think with the debts that your husband has, it might be the way forward. A fresh start maybe? Good luck in whatever you decide.

rhubarbarella

Hi,

just thought i'd update incase anyones interested.

Having seen the debt caseworker, bankruptcy IS the only real option for my OH. The debtcaseworker is now on annual leave until midmarch though so I am trying to work out if it is better to sort i myself, or wait for her to come back.

I have looked at the costs of running theh house we are in and to be honest even with state support in benefits it is going t be very difficult to maintain. So the debtcaseworker advised getting it valued t see if it has enough equity for us to sell it. If we can break even ie pay off the mortgage to the bank by selling it, and then move into cheaper rented accomodation, it would be best. However if there is no equity at all and we would be selling at a loss then we will have to stay put and try to make it work here.
I don't want to move, but thats the situation and so I am having it valued soon. Obviously if there was equity the OR would be lookig at assisted sale anyway.

My head is just swimming with everything, I feel constantly sick.

My OHs mental health is really no better. he is seeing the GP every few days but he is really in a bad way. it is awful to feel so powerless to help him in any way. if only I had a magic wand.

I feel like everywaking moment my head is full of thoughts of debt, bankruptcy, house sales, benefits claims and depression. It makes me wish I was a child again when all I had to worry about was whether I could play out, or how much homework I was going to get that night.

Maybe someone I know will win the lottery and bail us out??!!

I just hope if we have to move I can take my beautiful cats with me, I don't think I could cope with losing them too. They drive me mad but are keeping me sane if that makes sense? because I have to pull myself together enough to look ater them and its a reason to keep going.

ugh. anyway. thats kinda where we at today

Clarie_2

Hi,
just read your thread and wanted to say hugs!

Last May we were in the same situation - my husband was a sole trader, and the recession hit his business badly. We had a 5 yr rent on a premises which wasn't ending till Nov 10, and he was getting more and more stressed and I was being a bit head in the sand thinking 'it's your business not my problem'.
Anyway, he eventually told me just how bad it was and we got some professional debt advice. We had to accept the business just wasn't viable, and either go bankrupt or take on the £36000 debt it had racked up as our own debt (like you say, as a sole trader there's no personal/ business split).

The second option meant my husband seeking paid employment, and us pouring all my inheritence (deposit savings!) in to the big black debt hole - we decided to do it that way. And with God, and friends and family and MSE we're now in sight of debtfreeness!

It sounds like bankruptcy is the best option for you - if it saves your OH's health, and your sanity, go for it. Those things and your relationship are much more important than the money, like you said before - better a box under a bridge together!

I just want to encourage you that in a month's time, when whatever your plan is is up and running, things will look brighter. And when you are a year ahead, looking back, you'll be amazed at how much you've achieved and how much has changed.

So many hugs, god bless you and be good to you, and you will be fine, in the end :-)

Clarie

RAS

Thanks so much for the update.

If BR is the only option do go over to the BR forum http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=136 again.

They can help you sort out the BR papaerwork and SOA if he wants to do it whilst the caseworker is away.

If there are any accounts that are not priority and only in your OH's name, stop paying them to save up for the BR fees.

If you have any joint accounts, they will end up as your responsibility, so it may be a good idea to split accounts into his and hers; but be careful of being seen to transfer liability.

If you have any joint bank accounts take his name off them, or close them and open new ones separately.

have you had any luck claiming benefits?