Prison, kids, bankruptcy, mort/rent

rush2112

Where to start.

I am 46 yr single father of 3 great kids, 23, 21 and 18

I have struggled to bring them up alone, with little help from anyone, I got into debt and ended up stealing from employers to make ends meet and pay of debt, over 2 yrs stole £75k... 90% of debt paid off, and nothing left.

I have House worth £200k in today market (£300k 3 yrs ago), on market but no movement.

I will probably go to prison in Feb 2012, for a 2 yr sentence - so away for 9mths

I am out of work at moment, so claiming JSA, which would also pay for mortgage of £527.00 pcm

Problem I face is that the employers could go for compensation once i have been imprisoned, meaning I would be forced into bankruptcy. And no house for kids

I have mortgage and secured loans totalling £180k, so £20k in equity.

If I COULD sell up I can use cash to get rental property, and put away enough for the kids (in full time education) for 12mths bills/food etc, rent would be paid by DWP/ housing benefits

I could then go bankrupt and not beable to pay anything back

Should I stick it out where I am, with mortgage and some small debt and do IVA?
It is possible to go bankrupt and STAY in mortgaged property? as property can not sell?

any creative ideas? I have tried sale and rent back? but no one interested, although property would value at £240k for mort, and i could pay 12 mths rent up front

I am desperate to resolve, so I can keep roof over kids heads, and keep family together.... ADVICE sought, I know I have done wrong, but I am not an evil guy, just did stupid thing...

I have agreed to make repayments to employer, but obviously over many years, sadly the CPS and court ignore that and can obtain confiscation order on me

debtinfo

I'm at work at the mo I'll give some thoughts later if no one else does

NeverAgain_2

How desperate are you to avoid prison?

While you cannot buy your way out, if you turn up for sentencing with a credible offer of paying back £20K, it will go much in your favour, and might, just might, be enough to avoid the imposition of immediate custody.

Also in your favour is your responsibility for your children, although it would be better if they were much younger.

skylight

Hello there.

Firstly - the one thing that sticks out is that if you sell up, there is no way you can put money away for your kids and expect to get your rent paid. £20k equity will mean that you will be over the savings threshold by quite a bit and spending anything other than on day to day expenses will be seen as depreciation of capital thus they may not pay out the rent money. However, if you are forced to sell your home to pay for any possible compensation you have to pay out then that may not be regarded as depreciation of captial - but get this checked out by Shelter first; they are very good with housing and help. (I re-read and think that you meant instead putting away enough for bills for the kids for the year rather than giving them some money)


If your ex-employers do go for some sort of compensation from you, then anything they may be awarded will NOT be included in your BR should you take that route. You will still have to pay it. If you are forced to sell your home and there is a shortfall on that; that can be included in your BR.

It is possible to go BR and stay in a mortgaged property. If there is no debt on the property and it has equity its soley up to the OR to decide whether or not it should be sold to repay your BR - they have several years to make this decision in and you have to keep paying the mortgage. The mortgage company don't care if there is no debt as long as the mortgage is paid.


Personally - I would try the quick housebuyers again (not necessarily the sell/rentback guys). You wont get market value but its out of your hair; they tend to take any property so surprised you aren't getting anywhere. The reason I would do this is that I would want the kids definately settled in case I was put away. I know there is a chance you may not go to prison but you cant do anything behind bars so things need to be settled quickly! If there is any money then rent somewhere privately, perhaps in the kids names? They would definately get the HB (if qualify) as they have no savings - you can still give them some to cover the bills for a few months if you get enough. Of course, there is always the chance you wont go down and wont get sued either rendering selling up and all these problems as void. But I can't see into the future!

justjohn

kids will not make a difference at this age..... You will do time if found guilty(assume you have come too terms with this).

I assume your lawyer has said the company may sue/ask for compensation to recover the money.

Think you may just have too ride it out and play it by ear.

NeverAgain_2

...kids will not make a difference at this age...

The children are in full-time education, one or more may be living at home.

If the OP's barrister can genuinely say one or more of them is likely to be made homeless by the imposition of immediate custody, it will go in his favour.

I think the OP has been correctly advised the tariff for nicking that sort of sum is about two years, certainly no more.

Bear in mind two years is the maximum length for a sentence to be suspended, and judges are told prison should be reserved for violent criminals.

There is scope here to put forward a decent case in mitigation.

Experience tells me the barrister will mitigate along the lines of the appropriate jail sentence is capable of being suspended.

rush2112

thanks, yes the children ALL live at home, and are in full time education, and yes would face homelessness if i go to prison, hence i am making as much preparation as possible...

and i will plead guilty, so no trial..

jackyann

If kids are in education, I would definitely talk to your local authority. There will be some sort of pastoral care attached to their place of education. Education authorities will deal with young people up to the age of 19 ( to account for the fact that many turn 18 whilst still at school).
Local authorities are very aware that although they have no statutory responsibility over age 18, they are nevertheless, vulnerable. They may be able to point you to to good advice.
Universities also usually have someone who keeps an eye on young people who have no parent to turn to.
For your kids' sake, use any of this kind of help you can mobilise.

bobajob_1966

rush2112 wrote: »

thanks, yes the children ALL live at home, and are in full time education, and yes would face homelessness if i go to prison, hence i am making as much preparation as possible...

and i will plead guilty, so no trial..

Whilst they may be your 'kids', they are adults. You should prepare them for the possibility that they will need to make alternative arrangements. They will not be homeless, they will have access to student finance or benefits if they are unable to fund themselves.

NeverAgain_2

rush2112 wrote: »

thanks, yes the children ALL live at home, and are in full time education, and yes would face homelessness if i go to prison, hence i am making as much preparation as possible...

and i will plead guilty, so no trial..

I'm not sure where you are at in the process, but if you plead guilty, sentencing will be adjourned for about three weeks for a pre-sentence report, which will be prepared by the probation service.

The interview for the report is your first opportunity to say how sorry you are, and to put forward your circumstances.

Assuming you are sentenced at crown court, your barrister will use the report as his basis for mitigation.

If you are serious about offering compensation, you should also ask your solicitor to arrange a case conference with your barrister, prior to you being sentenced.

Your barrister will want a quick chat with you anyway, but unless you ask for a conference, he may do that on the morning of the hearing.

A quickie chat is adequate in many cases, but there may be more preparation needed for yours, which is why you should ask for a conference in advance.

ILW

Where did the £75k go?