Any advice appreciated, new poster needing opinions

Justmark

Hello, I'm hoping someone could give me a little advice... I'll give a bit of info if thats ok.

Basically I am currently living back at home with my mother and this relationship has completely broken down with no chance of rectifying, I have been asked to leave within a few weeks. I have a son of 9yo who stays with me 2-3 nights per week, due to space this was by sleeping in my bedroom in his separate bed. This was less than ideal but at least I was seeing my son. Due to the breakdown and unsuitable conditions for my son and I (there is alcohol issues in the household too), I am now sleeping between friends and my car at the moment and worried that access to my son will stop if my ex hears of it.

I have £23k of unsecured loans/credit cards over 3 creditors. These payment are currently up to date, costing approx £600 of my £1100 monthly pay. What was left after debt payments paid for food and rent - I'd then have to use the credit on the cards to supplement monthly. I acknowledge the majority of this is me not taking care of outgoings and debts have snowballed. I'm completely embarrassed but need to take it on the chin and do something about it. £15k of this was actually a consolidation with my bank but other credit card debt has now been accrued.

It's essential I find a tenancy asap for me and my son but doing so is completely unaffordable and I was all but giving up hope. I rang CAB today and spoke to someone very understanding who advised BR or IVA would likely be the way forward. As it is inevitable I will default creditors, I was advised to open a new co-op cash account to get my salary paid into (my current bank holds £14k of the debt), cease payments to all the unsecured debts and seek a tenancy using this money. They advised as soon as I was renting and paying utilities, they would then consider options based on my means. Doing this process now would be pointless as clearly finances would change a lot when I am affording utilites etc.

I was just wondering if this sounds the best way to proceed and sound...? If so I need to act fast as I get paid 15th (2 days time) and DD's are due to come out pretty much straight away. My g/friend has said she is willing to let me t/f this pay to her account (with the same bank) then t/f it to the new co-op bank when this is setup. Apart from essential outgoings (CSA etc), money would be held to get a tenancy and perhaps make it habitable with the basics.

I feel sick even thinking about defaulting on payments but I cant see anyway else to go. CAB did say they would write to my creditors on my behalf when the new co-op account was sorted to try and avoid further costs and freeze the debts. This seems it would only matter if IVA was done as costs would be part of the bankruptcy.

I've never been through anything like this so your understanding and advice are very appreciated.

Mark

NeverAgain_2

I can't see any significant problems with your plan.

Anyway, there's no right or wrong way.

A sensible tenancy on a roof over your head is a priority, so I would be inclined to concentrate on sorting that first, with a view to declaring yourself bankrupt after you've moved in.

Justmark

Thanks, even just knowing that this sounds about right is helping the nerves. All DD's now cancelled and ready to move my pay to my g/friends account Monday morning. Not looking forward to the calls and letters... !

imalooser

Life hey! best of luck in your journey mate.

rossireps

not a great help but try not to fear the letters etc. I had them for 3yrs and they can only hurt you if you let them. dont end up like me never going out till post had been.

PippaGirl_2

Try and find a place to rent before the defaults show up on your credit score though otherwise they may not approve you for a tenancy

Justmark

Yeah I was thinking this too Pippa (thanks for eveyones comments), but this means further problems...?

I've got no money for bond/rent/furnishing the property. The defaults will start this month, I'll be saving £600+pm by not paying but this isnt going to be enough straight away so will take another 1-2 months so money is there for rent etc. How long should I wait, I could probably stretch to renting middle of next month but this would mean I'm unlikely to be able to furnish the place for me and my son (as the utlilies etc will all start coming in which will clear me out)??

Another thing is what is reasonable rent? CAB said it wouldnt make any difference as no-one can tell you to reduce this as it would mean being homeless, but surely it can be challenged and affect matters. Cheapest places are £350 around here but if I paid £450 for a nicer area for me and my son, is this bad? Also would paying more ie. £100 extra, effect the decision to go BR as opposed to something else like IVA?!?!

NeverAgain_2

The official receiver will be content with you renting somewhere suitable for your needs.

So you in a four-bedroom house might raise a few eyebrows, but a place which provides some accommodation for your son and is still at the cheaper end of the market will be fine.

I can't see how a £100 rent difference will have an effect on your decision to go bankrupt or not.

The extra £100 released by the cheaper rent is not going to have much impact one way or the other on £23K plus interest.

Justmark

Thanks neveragain, that's a couple of my concerns out the way, just another million to go haha

Justmark

If I decide to rent through an estate agent, I appreciate BR could be a definite issue. Creditor repayments are about to start defaulting this week (see orig post for reasons), so I've two questions:

1) How long will the non payment (creditors are major banks) take to hit my credit report and how likely will these be to have a detrimental effect of tenancies?

2) Could I go and see the estate agent this week, explain that I'm saving for a bond etc and would they do their credit checks now - or would they credit check when I'm actually going to sign the agreement?

I know saving up for 6 months rent would also be ideal but this is impossible, therefore I'll be looking to rent mid-August, mid-Sept at the latest.

PippaGirl_2

Agents have to credit check you as part of your application for a particular property so I doubt they would do this early. Plus you pay the admin fee for this and then might not actually find anything suitable to rent with that particular agency so that would be wasted money.