Starting the bankruptcy journey at last

kaleidoscope

I posted back in October that I was considering BR..since then..Ive tried desperately to keep my head above water but Im slowly drowning:(

The situation as of today is that I have to find £700 pounds worth of repayments each month..physically impossible for me as my only income is now tax credits and child benefit..we have 5 children so there is nothing left over from my husbands wage..things are that bad that in about an hour, our electricity will run out and we have no more money for the meter

I spoke to national debtline who said that initially it might be an idea to start a DMP, but realistically I know I will never be able to pay off the £25k worth of debt I have..so I will only end up going BR at the end of it..

I feel utterly ashamed that Ive got this far..we sold our house etc to try and save ourselves but ultimately its failed

My questions are:
As of this month for the first time ever..Im defaulting on my credit payments (credit cards and two loans) in order to save for BR ..I have no choice..what will happen with regard to the cancelled DD's can they take me to court in the meantime or send bailiffs round?

Second..can the court REFUSE a BR request?

Third..we have a lease car..what will happen with this as we dont own it so its not an asset?

Fourth..can I go bankrupt alone? my husbands contract states that he will lose his job if he is declared BR

Many thanks..:(

tigerfeet2006

My questions are:
As of this month for the first time ever..Im defaulting on my credit payments (credit cards and two loans) in order to save for BR ..I have no choice..what will happen with regard to the cancelled DD's can they take me to court in the meantime or send bailiffs round? They will send lots of threatening letters and phone you constantly. Don't panic. If you get a court letter then post on the board and someone will talk you through it.

Second..can the court REFUSE a BR request? Only if you are not insolvent ie: you cannot pay the full ammount as it becomes due.

Third..we have a lease car..what will happen with this as we dont own it so its not an asset? Is it in yours or your DH name?

Fourth..can I go bankrupt alone? my husbands contract states that he will lose his job if he is declared BR Yes of course you can. Only be aware that any joint debts will be his to repay fully, not just half of them.


Hope that helps.

kaleidoscope

Thank you Tigerfeet

In answer to your question..the car is in his name

The debts are all in my name.sadly

the other thing is..Im a sole trader but barely bring in any money..I assume I would have to terminate trading?

kepar

When did you sell your house, did you get a good price for it and what did you do with any left over money?

kaleidoscope

May 2009 ..when the housing market had crashed..we only had 5 thousand left over which we used to clear one debt

tigerfeet2006

kaleidoscope wrote: »

Thank you Tigerfeet

In answer to your question..the car is in his name If you go BR then it will have no bearing on his agreements,

The debts are all in my name.sadly

the other thing is..Im a sole trader but barely bring in any money..I assume I would have to terminate trading?

If you want to carry on trading you can but if you feel you need to stop and find a full/part/no time job then that is fine to. Though if you have a business bank account then that will be closed.

Do you have any joint bank accounts?

Are your debts from your business?

kaleidoscope

Thanks again Tiger feet..it would be impossible for me to find a job at this moment as my youngest is just a baby..and any childcare costs would probably be more than my earning potential.

We dont have any joint bank accounts

no business debts at all..they are all personal ones..I probably would cease trading as since I had the baby Ive been unable to work as my work is largely seasonal and weekends and sadly my husband works weekends so Im left with no childcare.
I wouldnt be able to trade without a business account anyway as my clients insist on payment to a business account

My tax return for 2009/2010 showed a depressing profit of just £800

two of my debts are with my bank so Im going to open a new account..am I right in thinking barclays are the best one to go for..do I tell them Im about to declare myself bankrupt?

alastairq

two of my debts are with my bank so Im going to open a new account..am I right in thinking barclays are the best one to go for..do I tell them Im about to declare myself bankrupt?

Firstly, tell no-one of you BR plans.....that is important.

You will only be 'allowed' what are known as 'basic' bank accounts.the two BR-friendly banks so far are Barclays and Co-op.

I believe , with Barclays, you would need to open a basic account with them, immediately post-BR..as they may suspend any account set up pre-BR.

Co-op are not so bothered...a Cashminder account opened with them [or two] pre-BR can be used continuously.

I would recommend the latter bank, and done ASAP to move any finances you have away from creditor banks.

[Co-op don't seem to like opening business accounts during BR...not sure about Barclays?]

Co-op have internet account management included..although it is a bit slow...

kaleidoscope

edit: as someone posted after I posted this.

my problem is that my bank will just debit the money straight from my account at the moment so I really need to get my bank account changed pre BR..I have child benefit, tax credits being paid into my account at the moment ...so in theory I guess I could change to a basic bank account to save the fee..then if its closed I will have to open another.

The only person who knows about my BR plans is my husband and Im keeping it that way..TBH..I feel utterly ashamed of myself

alastairq

hi...see above regarding Barclays policy with accounts opened Pre-BR...

Withdraw all cash from your present account..ASAP...

As above, I suggest you open a Co-op Cashminder account.....you can actually pay in to this via the Post Office...

kaleidoscope

Thanks Alistair..I will try Co op then...stupid question but do they have branches or is it an over the phone application..Ive been with the same bank for 25 years so not taken notice tbh!!