Help......

Ox1987

Can anyone share their experiences unless you already have of having a large 2-3 kids family and going through a bankruptcy and repossession and being unemployed afterwards. I would like to have this knowledge so we can be armed when making decisions. I get mixed messages on what could/would happen so want to understand in reality.

Sorry to go on but worried Can anyone help

Ox in a panic

alastairq

Ox............most on here have done one, some or all of these things.You haven't received ''mixed messages'' at all.

{we cannot advise which way you should jump, for example}

All we can do is either give you the facts [or an explanation of them].......or relate from our own experiences.


Now that you have acknowledged [if but to yourself?] that changes have to be made in your life......this is the time to start 'getting your ducks in a row'.

To give you something to hold onto in the meantime, I agree, and suggest, you do what tigerfeet suggested.....?

This week, apply to open a Co-op Cashminder account [or two?]!

Then transfer all your income......and DD's etc..to this [these?] accounts.


This is a first, practical, step in dealing with a debt crisis.

{after admitting to oneself there is a debt crisis?]

You are shifting your day-to-day living expenditure away from existing creditors.


Two of these accounts are useful, as one can be used for income, and day-to-day expenses like food, fuel, etc....

The other is used for fixed essential outgoings like DD's, CT, water, leccy, TV licence, insurances, phone/broadband etc....and otherwise not touched, except to transfer in.

With Co-op, these accounts can be managed easily, online.

[But Co-op will not accept Cashminder applications after one is BR, and still Undischarged.]

Barclays offer a similar basic bank account, but once BR and Undischarged, they withhold online access....[usually]!


Online access will be, I feel, important to you...as it will allow you to monitor and amend your finances on a daily basis, online.

This will give you a better feeling of 'control' over what is happening with your finances.

This first step, of taking charge of your living expenditure is important for you.

And...being 'basic' accounts [no cheque books or overdraught, for example]....are acceptable should bankruptcy be your ultimate goal?



The next step...if you cannot afford to meet mortgage payments, secured loan payments, after what's left from living expenditure.....is to start looking for a decent home to rent...[long-term, preferably?]

You might want to cease paying into the mortgage, etc at this time...which will free up your income....show you what you can afford?

It takes time for a mortgagor to repossess a property, so don't be afraid of living there whilst you sort yourselves out.

Without knowing where you live, you might feel it beneficial to relocate a bit?

[Might as well, in fact, if you wish to really start afresh?]

In any event, aim to get yourselves a bit more settled into your 'new' way of life before considering things like BR [to deal with the debt situation].

TDMum

Sorry if you've already answered these but

1) do you have any equity in your property?
2)do you love your house?
3) do you love the area you live in?
4) Are there cheaper areas near to where you work?

(when I say "you" I mean you and your family )

tigerfeet2006

Excellent advice from Alastair. The only thing I would add is at this point is don't mention BR to Co-op at this point. If they ask just say you want to move to somewhere who are ethical or some such.

Oh! And give NationalDebtline a ring tomorrow. Be patient S they have been closed for a few days so will be very busy.

Ox1987

Sorry if you've already answered these but

1) do you have any equity in your property? NO
2)do you love your house? [COLOR="rgb(255, 0, 255)"]Not anymore [/COLOR]
3) do you love the area you live in? [COLOR="rgb(255, 0, 255)"]Kids Schools and area ok[/COLOR]
4) Are there cheaper areas near to where you work? [COLOR="rgb(255, 0, 255)"]Possibly[/COLOR]

(when I say "you" I mean you and your family )

The issue that I am concerned about which is what I relate to as the mixed messages is that if I go BR I would end up unemployed and would either have to change career or wait a bit to find someone who would take me as a BR.

Hence I would not be able to rent as no guaranteed income and hence I was believing we could move into social housing as the council would see us as a priority. There are nice social houses around my area ( I am in the Midlands) and then we could rebuild.

I just got back from an interview for a second job that would have added to the DMP payment working nights at weekend, however it was difficult as you could tell he was thinking why did this overqualified person apply to this.

I am just worried about the kids being happy and having a room over their head and food in the stomach, nothing else. I could then be happy with them and enjoy playing games etc and enjoy my children. At present I am dreading the boys coming back from hold with gran as i cant face them with the worry.

I was opening an account with Halifax to try the DMP route - would that be Ok for now

rossireps

wish i could help but dont have kids or a job. i do know though that having gone through divorce and br that YOU CAN survive most things. my life was over in 08 when my best friend left. of course it hasnt though as im still here. dont dread the postman or people at the door.

rossireps

i also went from not knowing how to look after myself or do things like manage bills etc. i had to leave my home of 15yrs. im useless with money but scrape through

TDMum

Have you actually found out what would happen to your job if you declared BR? There have been a few accountants who have given you advice and who have said they have managed to find work after going BR. Have you been in touch with HR or the relevant people to find out exactly what would happen yet? If not you are again causing yourself worry without having all the facts.

In regards to your house. If you think it is in your best interests to go BR I would agree with previous posters who have said stop paying the mortgage for 2-3 months (nothing will happen to you in this time just letters), save up a deposit and find a home to rent you will all be comfortable in that you can happily afford. From what you have said so far it doesn't sound as though you are gaining anything from living in the house you have now except worry about how to pay "a large mortgage" <your words>. Also if not having to cover the mortgage your life insurance should go down too offering you more savings.

If, as you keep worrying about, you do happen to become unemployed at any point you should get help with rent, council tax etc in a rented property as opposed to a mortgaged one.



THere are only so many times people can give you the same information over and over again. It seems as though you either want someone else to make the decision for you or for your hand to be forced somehow in which you HAVE to make a decision one way or the other. Unfortunately only you and your wife can decide. Noone here knows your exact circumstances etc so noone will know what is best for you. We can only advise as to what has helped us/friends/family etc You have to take all information given to you. Sit down with your wife (prefarably kids at grandparents), go through EVERYTHING and decide TOGETHER.

You must take control sooner rather than later.

tigerfeet2006

Well put TDMum.

Unfortunately Halifax hate BR's so I would go with the Co-op Cashminder or Barclays Basic account.

Ox1987

That account was for the DMP process unless you think i should do the others but i really wanted to open online as cant get to store