About to take the step

riche36

Hi everyone i thought i would introduce myself and share with you my journey.

I am currently in debt £42k from a loan, car finance, 3 credit cards, 2 store cards and an overdraft. I have been really poor with money and now its just too much and i cant afford to pay the minimum payments and every month run out of money before pay day.

I work as a project engineer and I live in a private rented house with my fionce, 16 month old daughter and our dog Nala.

I have a hsbc current accout, a natwest joint account and a derbyshire cash isa with nothing in it.

The only thing i have to my name is the car which is attached to the finance.

I have looked at all the different options and have decided to go Bankrupt so i can rebuild myself and start again.

If i go BR they will take the car as my partner has a car we can use.

i have a couple of questions:-

1 When i go BR will they close the joint account?
2 What is the differance between chapter 7 & 13 and do i decide which one?
3 What houshold items will they take from me?

Sorry to go on a bit.

dojoman

riche36 wrote: »

Hi everyone i thought i would introduce myself and share with you my journey.

I am currently in debt £42k from a loan, car finance, 3 credit cards, 2 store cards and an overdraft. I have been really poor with money and now its just too much and i cant afford to pay the minimum payments and every month run out of money before pay day.

I work as a project engineer and I live in a private rented house with my fionce, 16 month old daughter and our dog Nala.

I have a hsbc current accout, a natwest joint account and a derbyshire cash isa with nothing in it.

The only thing i have to my name is the car which is attached to the finance.

I have looked at all the different options and have decided to go Bankrupt so i can rebuild myself and start again.

If i go BR they will take the car as my partner has a car we can use.

i have a couple of questions:-

1 When i go BR will they close the joint account? Yes
2 What is the differance between chapter 7 & 13 and do i decide which one? Mean nothing in the UK, they are US bankruptcies.
3 What houshold items will they take from me? Usually nothing, it is usually only things that will fetch over £1000 at auction.

Sorry to go on a bit.

I have to ask, have you taken any advice from the debt charities about going BR? This is a prerequisite if you are to go BR.


https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/



Below is a link you may found helpful about going BR?

https://forums.moneysavingexpert.com/discussion/1056083

Hi and welcome to the forum, chapter 7 and 13 BR are US and not UK bankruptcies.

Ineedaname

If only you are going BR then it's wise to close the joint account beforehand to avoid your partner's credit record being affected by the joint association.

riche36

Yer i have taken advice from citizens advice and its the only option really.

I had better get that account closed then

dojoman

riche36 wrote: »

Yer i have taken advice from citizens advice and its the only option really.

I had better get that account closed then

Personally I would, but before you do open a Cashminder account with the Coop or a Barclays basic account and transfer all your business to the new one pre BR.

http://www.co-operativebank.co.uk/servlet/Satellite/1193206368743,CFSweb/Page/Bank-CurrentAccounts?WT.svl=copy

riche36

dojoman wrote: »

Personally I would, but before you do open a Cashminder account with the Coop or a Barclays basic account and transfer all your business to the new one pre BR.

Cool i will open a new account and move everything from my current account into it then just leave my existing current account with its overdraft.

With regards to the joint account its not used anymore but has £400 of its overdraft can my partner just be removed from the account leaving me with the debt?

philnicandamy

if the account is in debt..NO

and once you go bankrupt the bank will chase your partner for the ammount owing

riche36

philnicandamy wrote: »

if the account is in debt..NO

and once you go bankrupt the bank will chase your partner for the ammount owing

I have just discussed it with her and she is going to pay that back at £100 per month so should i remove my name or just leave it on there?

philnicandamy

again I very much doubt they'll let you take names off while in debt...have you any other joint debts together?

Ineedaname

You are stil best removing your name so her credit record isn't affected once you go BR. However, I doubt the bank would remove your name with the account in debt. So if you can wait 4 months to go BR then close the account once the OD is paid off that should remove any financial association between you.

Do make sure your OH pays the debt off though so you aren't preferring a creditor.

philnicandamy

they wont let it happen...not while the account is in debt

the ONLY course of action is what you suggest