Bankruptcy advised. Advice needed.

BTF

Hi,

I did post a bit of my back story in the mortgage section a few days ago so apologies if repeating it is unnecessary.

10 years ago I was a young single professional earning a good wage-and promptly spending it as soon as I got it. I then met my now wife and invited her to move up to the North East with me. We bought a house that was close to the edge of our means but manageable if I moderated my lifestyle. I didn't and started to pile up debts. For a few years I always found a band aid solution bonus at work, a remortgage a secured loan more credit cards, unsecured loans with every more dodgy providers so on and so on. In 2009 my brother moved back North and moved in with us paying rent which helped but later that year my then boss was sacked and the new boss stopped any bonus payments-before I was eventually managed out in July 2010 (stupidly resigning rather than making them pay me off). On top of that I suffer from OCD which the job exaggerated so my health was suffering. I was able to carry on self employed but as my struggles continued the amount I was able to work dropped off rapidly as did my income.

In December 2010 we contacted C+G who hold the mortgage and negotiated an interest only arrangement for a maximum of 3 years review able 12 monthly. We entered into a DMP with CCCS which at the time we were paying £421 pcm into-this has now dropped to £75.

In April this year after many months looking I was able to to get a job 25 hours per week with a franchised post office and the drop in income from me has been made up slightly by my wife (employed on a 15.5 hour contract by the NHS) doing 50 odd hours a month overtime in a different department it's been a massive struggle but we are fighting on and both looking for full time work or we were..

About 2 weeks ago I rang to see if we could continue our interest only arrangment for the final year to be told that due to a change of policy no further extensions were being granted. This came after I had made the decision that I could no longer continue my odd self employed days which were helping top up our income due to severe anxiety and panic attacks and after our 10 year old car had given up the ghost days after we had spent £375 repairing it to try and get it through it's MOT. It's been a rough few weeks.

Our house was worth a notional £225K at it's peak but was last valued at £195k in 2009 and is in some disrepair. I'd
be surprised if it was worth £150k. Mortgage plus secured loan is £205k. We owe £33k ish unsecured.

With things looking so grim both the CAB and CCCS have advised looking to move into private rented accommodation- the kids are now over 18 though my step daughter who is mildly autistic is unemployed and my stepson is only part time employed so social housing is probably not an option- probably with my brother as the primary tenant, defaulting when our payment reverts in December and looking to go for either a quick sale or a voluntary repossession and bankruptcy for both of us as about half our unsecured debt is in my wife's name and the secured loan is joint.

I admit my problems are my fault but I don't mind admitting that I'm scared and very low. My main worry is finding somewhere to live and wether we lose our jobs in the BR. I think my wife (admin in the NHS) should be ok-but I'm sure I read that my post office job would go -though there is nothing in my contract with the franchisee (a department store).

We have no prospect of help from family apart from maybe short term those who would can't or have already. Those who could (aunts and uncles) wont.

I think I am just looking for advice and maybe some encouragement that there could be light at the end of the tunnel. Any help gratefully received.

Apologies for the long post. :eek:

fermi

Welcome to the board.

Sorry to hear you've had a bad time. You are far from alone though, so you can get through it. Many here have.

I don't think I can see any reason why BR would be a problem with your jobs?

skintandfat

There is light at the end of the tunnel

I would suggest you take advice from National Debtline / Stepchange etc.
If you decide to move into rented property I would suggest you look at stopping payment of mortgage and saving up for a deposit for a new rental property.
This will let you be able to sign a new tenancy agreement before you are declared BR. Also look at the tenancy agreement before you sign- if it doesn't mention BR then you will not be required to tell the landlord.

IF

Hi skintandfat and Welcome to the Bankruptcy (BR) Board. First step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if your not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind. Your BR could be refused if you have not sought advice. We can't and shouldn't advise you what to do, this is to safeguard us, you and the forum.

* Blue text on this forum usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Business Debtline
  - Website: Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty
• PayPlan
• TaxAid - Help with tax debts.

Please don’t do anything rash take your time and weigh up your options and read everything you can.

We often ask you to post your SOA so we can see if you have included what you need to:-
MSE SOA Calculator - Click here
Select the MSE format at the end. Copy and paste onto your thread.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

BR friendly home insurance thread.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Beth's Guide Reasons for your BR

Charities who help with BR Fees

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

If you are new/old to this board and receive/see a comment that is not helpful or insensitive please don’t let it put you off posting, often these comments are made by people who don’t normally contribute to this board and don’t speak for us.

What to do if you get an insensitive or hurtful comment.

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.


Best wishes
IF...x

BTF

Thanks all.

I've read through most of the links and do feel a tad more positive. Truthfully I've known this day was always likely to come but it doesn't make it any easier when it does.

Fermi- I know I had to do a security check when I started in the Post Office, my CAB advisor said it may be a problem but she wasn't sure and googling it brought up www. harringtonbrooks. co.uk/bankruptcy/effects notallowed to post the link

I will be speaking to my manager anyway- she is aware there is a problem and will help where she can. It maybe I can transfer elsewhere in the store - I know without blowing my own trumpet that I've been a good employee to date !

My wife seems from what we can tell to be fine and she is now the one with a career and goodwill and contacts built up so that is hopeful..

Our plan indeed is to default on the mortgage and secured loan to save for a rental deposit. We are not going to do that till the payment goes up next month for a number of reasons the main ones being it buys us some time and at least lets us get Christmas out of the way. I'm not sure how many landlords do a full credit check because obviously our arrears are not going to look good. The other possibility is my brother being the main tenant or trying to find a guarantor.

Anyway thank you all for taking the time to reply