Going bankrupt - lots of questions

77blondie

Hi all this is my first time posting and would appreciate all your advice.


My husband and I have just go back together. I am living in rented accommodation and we own a house in a different area which is £60k in negative equity. Two kids, one at local school so don't want to move back to old house and can't afford to anyway.

Also have unsecured debts £11,500 on credit cards and a loan for £9k.

Don't feel any way out and think bankruptcy best option. Getting proper advice next week.

Would we lose mobile phones one with O2 and one with Orange. Both used for work purposes and not in arrears. Both have a car but only work £2k each again both needed and used for work purposes - will we be able to keep?

Have sky reduced as much as can and have phone and broadband with them - will these be cut off?

Feeling v nervous about it all. Can I use my overdraft to pay bankruptcy application fee - not ideal I know.

Will not be able to pay mortgage and some other debts this month. This is the first time we haven't been able to pay but due to getting back together I loose all tax credits so we are down money by being together

longtermplanner

"Proper Advice" sounds good, who are you going to? I'm not saying bankruptcy isn't a good choice for you, with that much negative equity it certainly may be, but it's a big decision so get lots of advice.

Your phones, sky etc, you don't get told what you can and can't spend money on. You may have to make a monthly payment to the Official Received (an IPA) for three years. It's up to you what you spend the rest of your money on. If you stopped paying the mobile contracts then the debts would fall into your bankruptcy and be wiped out, but if you can afford to carry on paying them then it's fine. Sky won't be an 'allowable expense' but if you want to spend less on food or holidays and keep the sky then that is your choice.

Your cars, this sets out the rules: http://www.harringtonbrooks.co.uk/bankruptcy/car

Your bankruptcy application fee has to be paid in cash. You shouldn't pay anything to any debts or the mortgage this month. How long will that take to save up the money?

77blondie

Thanks was beginning to worry I wasn't getting a reply. Lol.

Yes looking forward to proper advice. I have read in places that O2 disconnect people who are bankrupt.

I can get the cash now by using overdraft just not sure that's a good idea. Yes will stop paying debts but want to get advice first. This will be next week so before end of month and more payment.s.

Need money for both of us to do it so £1400 - will take ages to save that up

If we don't have cars neither of us would have a job

philnicandevan

start having a read here


https://forums.moneysavingexpert.com/discussion/1056083

then contact stepchange/national debtline/cab

macbabypam

I had 2 O2 mobile contracts in my name and OH had 2 in his name when we went BR in Sept 13. We had never defaulted and have kept payments up to date.

Never heard a peep from O2.

thelionel2000

I think the phone contracts all depends on who the company is.
Please speak to one off the charities and I know it sounds strange vut don't rush it. ( your circumstances are different to mine ) From when I decided to go BR to when I went BR took me 7months and feel as I put the homework in before made it easier to go through it.

77blondie

Thanks for the advice. Certainly won't be rushing things. Looking forward to getting advice this week and will then see where that leaves us !

woodformoretrees

macbabypam wrote: »

I had 2 O2 mobile contracts in my name and OH had 2 in his name when we went BR in Sept 13. We had never defaulted and have kept payments up to date.

Never heard a peep from O2.

Same here re O2.

National_Debtline

Hi 77blondie

Glad to hear you're getting "proper advice" soon - which presumably means free and impartial!

One thing worth pointing out at this stage as you referred to an overdraft. At some point, and ideally the sooner the better, you'll need to open a new basic bank account elsewhere as your existing one will be closed down in the bankruptcy. Barclays and Co-Op are your best bets (in the case of Co-Op, you'd need to ensure you opened it prior to the bankruptcy).

Good luck

Dennis @NDL