Almost taking the BR plunge........

Maizy

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Ineedaname

I think you need to focus on the facts as they are now and deal with your situation on that basis. IF your financial situation improves in the future you can then see that as a bonus.

Nobody need know you have gone BR, the negative equity has just become too much for you as it does many other people. So you are making a positive move if you let the house go and move into rented.

Can you consider moving nearer your husband's work place or into an area where it's easier for him to get to and from work, if you do decide to get rid of the car? That would also solve the nosey neighbour problem.

NeverAgain_2

Staying in your current house after going bankrupt may be the best short to medium term solution.

Experiences vary, but many bankrupts seem able to sit tight in their house for many months, if not a year or more, before actual physical nasty men bailiff eviction takes place.

Yes, you will have the stress for longer, and will be 'living a lie' to a certain extent, but it would take the pressure off the property search, enabling you to wait for the right house to come along.

You have candidly said you are concerned what people think.

Staying put will also lessen the apparent impact of bankruptcy on your lifestyle.

Maizy

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mandyl

hugs from me x

Ineedaname

Adding to the HUGS hun.

Maizy

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Ineedaname

Hi Maizy, sorry to hear you're still having no luck on the rental side of things, I'll keep my fingers crossed for you.

Most of my debt was Bipolar mania spending and I started on a DMP nearly 5 years ago. So I had little idea what I spent the money on and couldn't remember much anyway, now having an illness that affects my memory. I just told the OR it was general living expenses, the odd meal out, mentioned a couple of specific items and rattled on a bit until he got bored listening.

So I think general living expenses, the odd meal out, clothes for the kids and eventually robbing peter to pay paul, should cover it. They're really just looking at whether you were obviously living a higher lifestyle than you could afford, like buying a luxury holiday on credit knowing you absolutely couldn't afford to pay it back. So don't worry too much about the details.

As with you, I had very little in the way of statements. I thought I had kept the last statement sent me by each credit card company, but found out I had ditched those where the DCA had started sending statements. So I sent DCA statements where I had those, as being the most up to date and going back a year if I had that many. I then included the last received statement from the others, from nearly 5 years ago of course. That was fine with the OR.

Again, it's more about recent spending than proof of debt amounts as they can obtain figures from elsewhere. As you have no recent spending, being on a DMP, it's not so much of an issue.

With your bank account, send 12 months statements if you can (not with your BR forms, wait for the OR to request the extra paperwork from you, I got a letter a week after BR). But again, I had a paperless account and could only access 3 months to print online, so sent those with a note saying why there weren't more. Once again, the OR is just looking to make sure it's general living expenses and there's nothing leaps out as excessive.

Maizy wrote: »

Anyone who has been through BR, can you please advise what happened, my dmp debt is around 26k at the moment, the rest of the debt is mortgage and secured loan 144k.

As you're aware, everyone's situation is different, so an ambiguous question like that is incredibly difficult to answer. But in a nutshell, you go BR, you stop being liable for your DMP debt having already ceased payments knowing you were going to go BR. At some point your house is repossessed and the mortgage and secured loan also then drop into your BR so you are no longer liable.

After your day in Court you'll have contact with/from the OR's office and an interview where they will talk through your BR forms with you, just clarifying the facts and figures you've given. If there's a surplus and you can agree with the OR how much that is after discussing your SOA with them, you will enter into an IPA to be paid for 36 months from inception. This can be increased, decreased or even suspended according to changes in your financial situation throughout the IPA. Any suspended months count towards the 36 month term.

Hope that helps some anyway.

Maizy

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mummybiz5

Maizy - you and your OH are in exactly the same boat as me and my husband - we have five children and are wrestling with the housing and should or shouldn't we go bankrupt issue at the moment - I have spoken to some letting agents where we are and was upfront with them and it wasn't as embarrassing as I thought it would be - BUT - they want a guarrantor who has to earn an income multiple appropriate for the house rent level and pass credit checks or 6 months rent upfront !! We don't have anyone who can be a guarrantor and so it looks like we will have to default on the mortgage and try to save the 6 months rent - scary times - will follow your thread with interest - all the best x