Desperate for help ...

creditcrunchcharlotte

Really hoping someone can help me but I'm not sure they can. I declared myself bankrupt a few weeks ago. My ex took me to court and forced me to sell our house in negative equity. I defended myself as I didn't have money for solicitor and needless to say I lost. I was therefore liable for his solicitors costs which were more than my share of the negative equity. I spoke to a lot of people and asked for advice and it seemed bankruptcy was the right way to go. I did my income and outgoings and CAB said that they couldn't guarantee anything but thought it unlikely that I would have to have an IPA. After my OR interview I now have to pay more each month than I did before I went bankrupt. At no point did I realize that this would be for three years either.

I do earn a good salary but a lot of it gets swallowed as I work over 50 miles away from home and have an extremely stressful job and am studying for a part time engineering degree. I accepted that this wasn't going to be easy and I am more than willing to pay any surplus income I have but I read everywhere that BR only lasts for one year and then all debts are written off. I didn't expect that I would be penniless for three years.

I'm so depressed about it that I don't know what to do or who to turn to. I've been doing everything I can to avoid BR. Everyone told me I should do it when we first split up but I felt it was the morally right thing to fight it in court but I have lost and feel like I have lost everything. I am now in a worse financial position than when I started this and am bitterly regretting going down the BR route. I was ok with that being for a year but 3 years just seems like such a long time and I dont think I can cope with it.

Really hoping that someone out there can give me some practical advice as to what to do ....

Charlotte

Anondebtadvisor

Have you asked the OR for a breakdown of how they came to the figure they are quoting for your IPA? If not you should ask them for a breakdown.

An IPA will last for 3 years although the actual bankruptcy for 12 months.

An IPA should not leave you pennyless and should cover all your reasonable living costs.

tigerfeet2006

As Anon says please ask the OR for a full breakdown of what he has allowed you. Do not sign the agreement until you are satisfied it is fair. When you get it come back and pop it up and someone will look at it for you.

If you want to before then you are quite welcome to pop up what you summited to them and we can check it for you to see where he may have made cuts.

Meanwhile start keeping your petrol reciepts as proof of expenditure.

dancingfairy

If you are really struggling then maybe you need to review your IPA and try and get the OR to relook at it for you? I'm sure people on here will try and help you.
df

alastairq

hi..I agree, BR was indeed the very best course of action you could have taken.
If the property was sold with negative equity, then your Ex would get nothing as well.

However, the mortgagor [first charge] will pursue both of you for the shortfall...which has become an unsecured debt.

You have acted correctly by petitioning BR....and your EX will have to face being pursued for the entire shortfall....which may, or may not, please you?

However, it appears you have assumed the IPA is an imposition that must be paid into the BR... when in reality is is an agreement.

therefore, as all the others above have said, you now need to get the OR to forward an exact breakdown of how they have arrived at your surplus.

Post your SOA [your actual costs] on here for help and advice.
Then, if needs be, challenge the amount of surplus the OR has identified.

I would wish to comment on your lack of preparation for the BR petition.

[advice for lurkers, really].


But you also need to ask yourself...what alternatives were there, to BR?

Pretty much none, it seems?

At least the IPA, if you do end up paying one, lasts only for three years from agreement date....and..can be varied up, down, or zeroed altogether to suit varying changes of circumstance.

Something which other types of debt remedy seem to fail to offer?

Now you are on this forum... time to start rectifying the situation?

SteveABC

Post your SOA [your actual costs] on here for help and advice.
Then, if needs be, challenge the amount of surplus the OR has identified.

I challenged mine by writing a full, frank and honest letter to the OR, including receipts of expenditure etc. It was reduced by over £200 per month. :T

Rylynn

alastairq wrote: »

[advice for lurkers, really].


But you also need to ask yourself...what alternatives were there, to BR?

Pretty much none, it seems?


Now you are on this forum... time to start rectifying the situation?

I have left the bits relevant to what I am going to say, and that is you are totally right, you need to be as clued up as possible before going into BR, even with no alternatives you need to know the full implications and facts.

I would like to add that this site gave me all the information, help, advice and moral support that I could find no where else. The only other advice I got was from my IVA company who said I had no choice but to go BR and to make sure I knew what it involved.

I was aware it was three years, and BR was only 12 months max and could be less, mine was only 6 months to discharge.

OP make sure you phone your OR and get the breakdown and then come back here as you will find there are so many people here who can help you. As the last poster has shown they can and do get it wrong, he has had his reduced by a huge amount and so might yours be if it is in fact not correct.

Best of luck I know this can be a scary time, but you took the right course, but maybe not with enough information.