is BR the answer for me

crowmans4

i will try to keep this as short as i can as posted on other threads.
basically is BR the only way to go for me now to try get back to living a bit ...

after handing back keys of a house i couldnt sell it sold and the shortfall is 23k.........i am now told a shortfall company will be in touch.......it was joint names me and my ex ......

will this shortfall company chase me even if after doing their budget planner it shows i just about break even to what i earn and what i pay out

luckily last few months my works been busy so ive been able to do extra shifts putting away around £400 per month. ive done this last 3 months although this will stop in new year and il be back to just about breaking even ( outgoings 1600 earn 1600 to 1900 currently this will go back to 1300 basic in new year )

apart from above and not knowing what will happen or what is next


my ex ran up a few credit card in my name to a total of 15k. i have been gettin harrassed recently since finding out about them. debt goes back 5 years but i am only finding out as she had them on an iva shes stopped paying since we seperated..

the prove it letters on here stop the demands only for another company to start it all off again and then back with the prove it letters......

lastly the house mentioned i havent lived in in years she did i payed before last couple years renting it and then trying to sell to no avail...... so also there around 2k of rates owed......
so approx my share or all as she works part time only min wage of 23k,15kcards,2krates.

what is likely to happen with this shortfall........
they ask for last 2 wage slips which are the ones ive worked like 60 hour weeks...not a true picture of wot i normally earn....
will they still chase me for it or what is likely to happen

should i use this extra gained from working overtime and declare BR AND PAY £700. will it go away


any help please

Action_Jackson

First thing you should do is get a consultation from someone like StepChange.

If you go BR, your creditors will go away - they cannot hassle you and must deal with the Official Receiver instead.

If it was a joint mortgage on the property with your ex and you go BR, then your ex will assume the full liability for the £23k (unless she goes BR also).

When you declare yourself BR, they will look at your regular income and your reasonable domestic living expenses.

If there is a monthly surplus of £20 or more, then the trustee will take 100% of the surplus and give it to your creditors via an Income Payments Agreement (IPA). This will go on for 3 years from the day of signing the agreement. The amount you pay may be varied up or down if your circumstances change e.g. you get a pay rise.

If you have no surplus in the first instance, then they won't create an IPA initially, and this will remain the case if you don't have a surplus at any time during the 12 month BR period.

Normally, you will be discharged from BR after 12 months, and if you had no IPA, you would be free of all obligations at that time.

mattannar

my ex ran up a few credit card in my name to a total of 15k. i have been gettin harrassed recently since finding out about them. debt goes back 5 years but i am only finding out as she had them on an iva shes stopped paying since we seperated..

Why would be paying an IVA on your credit card?
I do not understand that quote.

crowmans4

mattannar wrote: »

my ex ran up a few credit card in my name to a total of 15k. i have been gettin harrassed recently since finding out about them. debt goes back 5 years but i am only finding out as she had them on an iva shes stopped paying since we seperated..

Why would be paying an IVA on your credit card?
I do not understand that quote.

cards were in my name tho i was unaware. we were together when found out so were added to a joint IVA. she paid it tho as was her debt despite my name. i always gave her half til we spilt and then i got hit for maintenance as well as paying for her and kids to live in the house so i stopped my half which was only £50 per month so she stopped paying IVA like 4 years ago when we split and ive only found out now as its cancelled so the companies that had my name on it are chasing me now

crowmans4

Action_Jackson wrote: »

First thing you should do is get a consultation from someone like StepChange.

If you go BR, your creditors will go away - they cannot hassle you and must deal with the Official Receiver instead.

If it was a joint mortgage on the property with your ex and you go BR, then your ex will assume the full liability for the £23k (unless she goes BR also).

When you declare yourself BR, they will look at your regular income and your reasonable domestic living expenses.

If there is a monthly surplus of £20 or more, then the trustee will take 100% of the surplus and give it to your creditors via an Income Payments Agreement (IPA). This will go on for 3 years from the day of signing the agreement. The amount you pay may be varied up or down if your circumstances change e.g. you get a pay rise.

If you have no surplus in the first instance, then they won't create an IPA initially, and this will remain the case if you don't have a surplus at any time during the 12 month BR period.

Normally, you will be discharged from BR after 12 months, and if you had no IPA, you would be free of all obligations at that time.

so basically i am screwed as last 3 or 4 months ive worked my nuts off doing extra shifts to furnish my new house with essentials and sofas,bed,cooker,washing machine ,tv etc as i was left nothing she took the lot.......
and now becausse of this ive been earning 400 to 500 a month extra than normal wage.............once i get all i need and pay for trips for schools and fees all that overtime surplus is gone and as off jan i will be back to standard wage....
so if i have 100 surplus at end of the month are you saying they will take that 100?

philnicandevan

any surplus over £20 after living expenses is taken....

Action_Jackson

crowmans4 wrote: »

...
so if i have 100 surplus at end of the month are you saying they will take that 100?

Yes, I'm afraid so. they take all of it if you have more than £20 (yes, even the £20). They only let you keep amounts less than £20 because it would cost more to retrieve it!

It used to be they took 50%, which left some incentive to work overtime, get promoted etc.

I agree it's a rather draconian measure to take 100% of surplus, but that's the price you now pay for being free of all your debts.

The OR must initiate the 3-year IPA based on your surplus within the first 12 months - they cannot do it after discharge. If you have no surplus in that 12 months, then there will never be an IPA.

Having to buy some furniture or other household essentials would be classed as a reasonable domestic expense, so wouldn't be counted as surplus. Also, the OR won't be interested in the odd overtime payment, only if it occurs on a regular basis.

The OR must leave you with a reasonable standard of living, and you can negotiate with them as regards what you need to live on and what is counted as surplus. There's more info here:

http://www.insolvencydirect.bis.gov.uk/TechnicalManual/Ch25-36/Chapter31/part7/part4/part_4.htm

It's hard, but with some planning and understanding the rules and guidelines, you can lessen the impact of BR.

crowmans4

SO BE NO HOLIDAYS OR ENTERTAINMENT INCLUDED THEN AS I DIDNT LIST THAT IN THE BUDGET PLANNER
ive 2 kids one i see once a week one i see once a fortnight......so you can understand when i get them time is precious......thats why i try do something special or go places and tried plan a hoilday for next year giving loads time to pay off........i guess not if they take any surplus..........looks like ex has is sussed.......leave work claim all u can and ignore all bills......shes a happier life than me working my nuts of to try make a life....

spacey2012

Any children to maintain ? that could waffle away any surplus.

Anondebtadvisor

You can find information on IPA and allowable expenses here
http://mymoney.nedcab.org.uk/moneyadvice/bankruptcypoc.asp

You can include a small allowance for holidays and entertainment

crowmans4

spacey2012 wrote: »

Any children to maintain ? that could waffle away any surplus.

im trying..........

get rid of all this its one less stress to deal with........

just leaves the kids then to worry about

different subject and topic but fathers have no rights....been there done it got the court orders.....social services etc dont include fathers......and take the side of mother and her family.....
one daughter was too young the other i beleive was the victim of parental alienation (poisoned against her father and kept away too long by bitter mother and inlaws)
something that ive to just live with and cant ever fix.......
hope no one on here has to suffer the same.......
any dads out here having similar fnf.org famlies need fathers are a good help

pity they didnt think of the kids when using them against me....


anyhows.........
all this advice and still dont no wot to do.

guess i wait on the shortfall company getting onto me then ignore thier budget planner request as i do not want to arrange any payments as more than just the shortfall of house dragging me down in debt...so BR seems only way out to start fresh and clean and no overtime for a year as i will be working the hours for them by sounds of it....not me my partner or my kids to benefit

that about correct anyone