At my wits end

im_screwed

I am at my wits end, please please can anyone give me some advice what to do

2 years ago my life was great, I was earning 32K and my now ex wife was
earning 40K from her business. Then the credit crunch hit her big time and
she ended up dissolving her business. Therefore 40k income down to zero.
In this time we made some stupid mistakes and ended up in debt up to our ears.
We lost the house and there is still 87k outstanding debt from a secured loan we
had on the property. This and the credit card debts I have the total amount I have
is approx 122k. I have written to all my creditors and all have been most helpful
and Im paying £5 month to each at the moment with the except of the 87K loan
which is now in the hands of Credit Solutions Ltd.

I have explained to them that I have no funds and can only pay a token amount
the same as my other creditors but they are refusing to accept this and I am being
called every day.
Even I know ive been stupid and although living the high life once its all come
Crashing down. Im pretty sure that an IVA is a no brainer and bankruptcy is my only option but can someone help me with a few questions please.

Firstly the 87k was a secured loan on a house that was reposseed, does this now turn into an unsecured loan and can it be including in my bankruptcy

Secondly, my only asset is my car, it worth about 4k but I need it for work as public transport does not run the hours I work (12 hour shifts). There is no finace owing on
The car as over the last couple of years it through a personal loan not hp.
Will I lose it ???

Thirdly I have no money at present, but may have the opportunity to work overtime
To afford bankruptcy, will this be ok with the OR. Or will he expect me to be using this
money to pay my creditors.

I am not sleeping I have a lovely new girlfriend that does not know my financial and to
top it off my company has just dropped my salary by 15% to save jobs and the company.

My life cannot get any lower than I am at the moment……

Any answers gratefully received…

Thanks

withabix

Are the debts in your ex-wife's name as well and are they chasing her?

mrcurious_2

Hope you get things sorted out soon.

tigerfeet2006

Hi, and welcome to the board.

First thing you need to do is have a chat with someone like National Debtline. They will go through all your options with you and if they recomend BR, which I have a feeling they will, then we will help and support you through it. You need to do this as your petition may be refused if you haven't taken proper advice and you will have to go back at a later date.

Firstly the 87k was a secured loan on a house that was reposseed, does this now turn into an unsecured loan and can it be including in my bankruptcy As this is unsecured now it will fall into your BR.

Secondly, my only asset is my car, it worth about 4k but I need it for work as public transport does not run the hours I work (12 hour shifts). There is no finace owing on
The car as over the last couple of years it through a personal loan not hp.
Will I lose it ??? Yes. The OR will only let you keep a vehicle of sbout £2k. You could sell it. for FULL market value and buy a car of lesser value and use any money left for your BR fees and any essential living costs or give the remainder to the OR, keep all reciepts.

Thirdly I have no money at present, but may have the opportunity to work overtime
To afford bankruptcy, will this be ok with the OR. Or will he expect me to be using this
money to pay my creditors. No, they understand what is happening. Many people STOP paying creditors to save the money once they know they are insolvent.

I am not sleeping I have a lovely new girlfriend that does not know my financial and to
top it off my company has just dropped my salary by 15% to save jobs and the company. Can you talk to your girlfriend about what is happening. If she is a keeper, she will understand and support you.

My life cannot get any lower than I am at the moment……Now the only way is up!

Any answers gratefully received… Hope I have helped

Any joint debts will fall to your ex to pay in full.

Tupperware_Queen

Tiger has given you the best advice, I have nothing to add except to say that although its a cliche..it very true

its always darkest before the dawn

good luck xx

NeverAgain_2

The advice to take advice is very appropriate in this case.

Most bankrupts have run up about £20K or so on the credit card.

No one bats an eyelid and the bankruptcy goes through on the nod.

There's bound to be more questions for £122K.

One I would ask is length of time before discharge.

I might be wrong, but I think this amount falls outside the 'quickie' rules.

the_bright_side

NeverAgain wrote: »

The advice to take advice is very appropriate in this case.

Most bankrupts have run up about £20K or so on the credit card.

No one bats an eyelid and the bankruptcy goes through on the nod.

There's bound to be more questions for £122K.

One I would ask is length of time before discharge.

I might be wrong, but I think this amount falls outside the 'quickie' rules.

There was no additioanl questions to my wifes £120K+ and she was discharged in 12 months :-)

The OR will discharge you only once all enquiries are complete and they are satisfied that all is in order, isn’t this the same for 1K or 1million, in fact some of the people I have spoken to on this site have gone BR for allot more than 122K

Charlie142

Hi Neveragain;

Other than having a wife/partner I was in same situation as you last year. My debts total through mortgage arrears, negative equity post sale (had the 125% N Rock one), credit cards, loans, more credit cards etc etc and all the trappings of living a £70k pa income were about the same as yours.

You have received exactly the right advice previously, I am now a week away from automatic discharge having completed the year and I can tell you from first hand experience it does get better.

Check out the joint debts as previously mentioned and my advice would be to get on with it, be open and honest with your partner and also if possible advise your ex-wife as she may wish to joiin you in jooint BR.

This is the start of putting your life in order and you will have so many others on here that have been through and are going through what you are. the support and advice is invaluable. Keep your chin up and good luck.

minicooper1961

Hi

Just one little snippet from me to echo a couple of other posts, talk with your wife if you can - and be totally honest with the girlfriend she may well be a very valuable source of support for you and if as someone else said 'if she is a keeper' then she will understand and help you through.

MC:)

debtinfo

ps what Tiger feet says about the car is correct, of course this is only guidance and subject to the will of the OR in your individual case

dojoman

NeverAgain wrote: »

The advice to take advice is very appropriate in this case.

Most bankrupts have run up about £20K or so on the credit card.

No one bats an eyelid and the bankruptcy goes through on the nod.

There's bound to be more questions for £122K.

One I would ask is length of time before discharge.

I might be wrong, but I think this amount falls outside the 'quickie' rules.

The actual amount has got nothing to do with how the case will be investigated, and what are the quickie rules?