How long do I have to save finances before creditors get nasty

russfred1

Hi all,

Right, going to speak yo stepchange today regarding me and midwife declaring bankrupt.

My question is, i am going to stop paying creditors and stop paying our mortgage so we can get money for rent/deposit on New home and money for bankruptcy itself, how many months can I do this for before people start coming after us for money. I plan to use febs money to get a rental property sorted, then use March and April's money to get bankruptcy fees then go to court beginning of April. Is this too long a time period or am I panicking over nothing???'

Thanks in advance

longtermplanner

First do not tell your creditors you are going bankrupt until you have moved into a rental place.

It will usually take several month before your mortgage lender can repossess you house (assuming the lender doesn't already have a Suspended Possession order?).

It doesn't matter if 'your creditors get nasty'. All you will get is cross letters and phone calls. No one will call and see you. Bailiffs aren't going to suddenly arrive.

The only thing that can go wrong is if your house is repossessed before you have found somewhere else to move to. hence the advice not to tell the mortgage lender.

Depending on where you are going to rent, you may need either a higher than usual deposit or a guarantor if your credit rating is poor.

You and your wife don't have to go bankrupt at the same time.

Louk

I received the same advice from stepchange back in late September/October, I'm about to go bankrupt next week. I started by writing letters to my creditors explaining I was having trouble with repayments and that I working with stepchange to resolve the matter (I included my customer number from stepchange as evidence) I asked for them to stop any action on the account for a period of time while I came up with a solution. Most gave me at least 30 days. Since then I have pretty much ignored all letters and phone calls (my phone is on silent so I don't even hear them call) and so far that is all I have had.

luvchocolate

Hi lenders usually get legal after 6 missed payments and can take a few more months before repossession....mine was 10 months in total

forgotmyname

Maybe contact them 1st to say you have money issues. Your hoping it will be resolved in a couple of months. Can they freeze the account. Or just make them a token payment £10 or less?

If they will freeze it for any length of time it may push the clock further down towards your bankruptcy date.

Would a tiny token payment convince them your willing to see it through and not run away from it?