Thinking about going bankrupt

stuckinatrap

Hello,

I'm looking for some advice please. I'm about to apply for bankruptcy sooner rather than later as I have left it far too long. My wife was declared bankrupt last year when we were seperated and although we have been back together since september I haven't got round to declaring myself bankrupt.

I suppose I still had my head in the sand and didn't want to face facts.

Anyway Our house was repossesed at the begining of this year and this morning we had a visit from someone from the mortgage company's debt collection department asking to set up a payment plan for the shortfall.

I of course can't pay this and as my wife is Bankrupt it falls to me.

I have sought advice from national debt line and the citizens advice centre but I didn't feel very comftable with them so I spoke to the CCCS who were very helpfull.

One question I was very scared to ask was, I stupidly applied for a next account just after I got back with my wife (its in my name) and I have paid each month. Two months ago my limit was increased and I ordered some things for the kids in the sale. I have just paid more off the balance on wednesday and I would like to keep the account if I can.

I'm worried the Official Reciever will come down quite hard on me because of this or make me include it in my bankruptcy.

I know I was stupid to apply when I knew I had so much debt I couldn't pay off but now I want to put things right.

Can anyone help with my question?

I have another one but its quite lenghtly, but one step at a time.

silvercar

You can't choose which creditors go in your bankruptcy and which don't. If you go bankrupt they all go in.

As far as the Next account goes, the OR's view on buying clothes in a sale for growing children will probably be quite relaxed. The fact you have been making repayments on the account will suggest that this was something you budgetted for.

In the scheme of things your outstanding Next balance will be dwarfed by the amount outstanding to your mortgage lender.

If you decide that bankruptcy is for you then time to stop paying next adn save for bankruptcy fees. If on the other hand you can come to an arrangement with the lender, can you avoid bankruptcy all together?

stuckinatrap

I don't think I could avoid bankruptcy, unless I try for an IVA.

Before I knew the shortfall of the mortgage I owe just over £85k including the shortfall of £32750 it takes me to around £118k maybe just under.

I could get into a lot of trouble couldnt I? the outstanding balance to next is £900 (after I paid them on wednesday just gone) My wife has said she will continue to pay next each month if I could keep it.

silvercar

If you go bankrupt you won't be able to keep it. That being so, once you decide to go bankrupt you should stop paying to it and use the money to save for bankruptcy fees.

I can't see the OR getting worked up about sale clothes when that is less than 1% of your debt.

JCS1

On those figures, the Next account is very unlikely to attract any comment.

stuckinatrap

Thank you for replying.