House Already Repossessed

splashin

Ok where do I start. I have buried my head in the sand for far too long. And now I just don't know what to do, who I need to speak too or what I need to prepare myself for.
My Mortgage Lender repossessed my house on 17th March 2014. I left the property days before the Bailiffs attended with a locksmith. I never handed the keys back. In fact I've never spoken to anyone about the situation, because they were demanding arrears in full. Which I never had. And I had only a small amount of available money each month, to make them an offer of a plan to repay the arrears, so I just gave up and allowed the repossession to happen.
I didn't have any secured loans on the property, but I did have an attachment order from a council tax debt.
I do also have other outstanding debits, mostly with Utility Companies eg. Gas, Water, Electric, Insurance, also Santander (Loan), Council Tax, HMRC (overpayment of tax credits). These outstanding amounts added to the amount I owed to the mortgage company (at the time of eviction) amounts to around 25K. I have read on the internet, that I will be liable for the mortgage payments on the property until it is sold by Auction and will also be responsible for any shortfall. I expect the (shortfall) to be between 10-15K. Which means I will then owe 40K in debt. I'm living hand to mouth now, trying to pay off arrears for 15K, whilst also paying to live. How will I cope???
I have no savings or any other assets in my name. I have been able to move my son and myself back in with my Mum, while I try to get some money together for a deposit and a months rent on a private property rental.
I am ashamed of everything that has gone on and is going to happen, which is why I think I find it so difficult to contact people and speak about it. So any advice would be Great!!

woodformoretrees

Hi,
So sorry that all this is happening. From your post you quite obviously feel totally out of control.
I think you need to make a brave move and contact one or all of the debt charities. They are going to be absolutely invaluable to you over the coming months.
Please do that? They will be able to give you a much clearer view of your options.

X

IF

Hi splashin and welcome to the Bankruptcy (BR) Board. As woodformoretrees has said your first step is to make a list of all your creditors, debts and assets. Secondly and most important is contact one of the following debt charities. Please try these they don't charge and are impartial. They will go through all your options with you and if they suggest bankruptcy then come back to this board and we will help you all we can. Also if you're not ‘clicking’ with one of the Debt charities do try another. We advise you to try at least two others for your own piece of mind.
Your BR could be refused if you have not sought advice.
Advice on here does not count, this has to be from one of the Debt Charities, an IP, an Accountant or a Solicitor. The Judge just wants to be sure that you can never come back and try and overturn the order on the basis that you were not aware of all the consequences.

* Blue text on MSE usually signifies hyperlinks, click on the blue links below *

Main recommended sources of help:

• National Debtline - Website: National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Citizens Advice or visit your local CAB centre (find nearest)
• StepChange (formerly CCCS) - Website: StepChange Telephone: 0800 138 1111

Others:

• Debt Advice Foundation
  
• Christians Against Poverty
• Business Debtline
  
• PayPlan
• TaxAid - Help with tax debts.
• Debt Support Trust
  

Please don’t do anything rash take your time and weigh up your options and read everything you can.

For ‘essential’ BR info the ‘Look here first’ sticky by Fermi.

Beware of advice via PM.

BR Friendly Bank Accounts ~ [Updated Sep 2012 re: Co-op Cashminder withdrawal]

BR Abbreviations

Reasons for your BR - 6.28

Charities who help with BR Fees

BR friendly home insurance thread.

CABmoney Bankruptcy Payment Order Calculator

Bankruptcy NDL Guide

Basic Bankruptcy Advice & Guide NED CAB

And do remember we’ve all been through this and anything you don’t understand don’t be afraid to ask.

Best wishes
IF

longtermplanner

hi Spashin,

I think it would be good for you to talk to one of the 3 main sources of recommended help ifwishes listed. If you are finding this scary, then reading up as much as possible about your options first is a good idea, as it should mean that you feel a bit more in control of the process. I would add to that great reading list this website http://debtcamel.co.uk/ which is a pretty common sense guide and has good pointers to where to go depending on your situation.

The most important thing for you now is to get together the deposit so you can rent someone for you and your child. Only when that is done can you really know what your true financial situation will be. It seems likely that facing that debt mountain, bankruptcy is likely to be your best choice, but this is a big decision and it's better to wait until you have all the facts before taking it.

In the meanwhile, you need to divide up your debts into those you have to continue to pay and non priority debts that you can stop paying anything until you have moved and settled in. Council Tax is a priority and you say there is an attachment of earnings anyway, so that will continue. The Child Tax Credit overpayments are presumably being deducted from your current tax credits? , In your situation. none of your other debts sound like priorities to me. I suggest that as a temporary step, you write them all a letter saying you have had your house repossessed, you are currently staying with friends and you will contact them about repaying your debts when you find permanent accommodation. There is a template letter here that you can use:
https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Token-payments-or-no-offer-of-payment-%28sole-names%29.aspx

If you are worried about writing this letter, give National Debtline a call and talk through all your different sorts of debts with them.

One other thing. Do not sign ANYTHING that your mortgage lender sends you. Sometimes they try to get you to sign something that means that the mortgage shortfall will not be wiped out by bankruptcy. The simplest thing is not to sign anything.

alastairq

I agree with all the above, as a start.

It really looks like a BAnkruptcy Petition might be on the cards....? [especially with the shortfall & mortage arrears situaion?]

Liability for a debt does not mean one has to pay, regardless.

Whatever, you really should stop feeling so ashamed of your situation.

There are millions out there in a similar place..and most on this forum have been there as well.

Shhh....it happens, eh?

But, well done for posting on here now..as that alone is the first step to dealing with the situation, and turning things around to your advantage.

I'm willing to bet you'd really like a good clean break from all this detritus hanging over you?


SO don't be afraid to consider BAnkruptcy as an option.....this alone will give you the fresh start you need, I suspect?

Time to stop worrying about how its all going to end, and to start getting things in place to make life 'easier' in the future?

I strongly recommend you divert all cash...aside from living expenses....towards raising a deposit for a really nice place to rent for you & your child.

I suggest this is done as a priority.

Once you are comfortably established you will feel better..and also be in a good position to then proceed with dealing with all the debt.

Sign nothing, as has already been advised....from the mortgagor. [although, pre-BR, there is some doubt as to the validity of a sign deed of acknowledgement? Post-BR is another issue altogether?}

Go & open a couple of basic bank accounts, with either Co-op [Cashminder] or Barclays.

Transfer all DDs, SOs, bills money to one of them, with your income going into the other.

The above really is essential preparation for you, prior to going to the next step, that of dealing with the debt [possible BR, for example?]

The bank accounts I mentioned will be fine throughout, and beyond, any Bankruptcy or Insolvency process...unlike other banks.

so..rent & bank accounts first...and become immune t the pestering calls, they are meaningless, just nasty waffle..once you have decided how to deal with everything.

splashin

Thank you all for your replies. I am going to get things in order and make contact with some of the Debt Charities mentioned and see what they think. I have already listed my debts, also my income and outgoings, I don't have any assets in my name.

With BR, I was unsure if it was myself or the Creditor who made me BR. But I think it will be my responsibility now, is this right?? And would I have to wait until the mortgage people sold the house or do I put in for BR now??

:o:o:o:o:o:o:o:o:o:o

longtermplanner

In theory either you or one of your creditors can make you bankrupt. But you have no assets so it is very unlikely that one of your creditoprs will do this.

You don't have to wait until the house is sold.

abetterfutureahead

6 years ago I was in the same position as you are now... Not a happy place... I was advised to go bankrupt but to be honest I never found the courage or strength to do it... I'm now in a much happier place occasionally I get pestered by debt collectors but I still don't reply. I wish in some ways that someone would bankrupt me but as I have no assets it's not going to happen.


You have a young child and they are your main priority regardless what others say they are your biggest asset... Get on the council list, you're obviously not a work shy Jeremy Kyle type! You bought your own home for gawd sake ... Take a few months out, see your doctor for meds if needed and enjoy the summer... You haven't murdered anyone or committed a terrible crime You will sleep all night again possibly even better than before and your experience will assist others in the future. Sending you love and light xxx

macbabypam

It's never a good idea to bury your head in the sand, things have a funny way of coming back to haunt you.

Well done to facing up to your situation, as previously said get as much info as you can as you will feel more in control and concentrate on securing your home and your finances.

Things will look very confusing and dark at the minute but as most of us on here are testament to, BR is not the end of the world and you realise the world is a much brighter after the event.

Try not to worry too much, get your head down and get speaking to people who can help and advise you.

Good Luck, and remember there is loads of support from us too.

cavework

I am ashamed of everything that has gone on and is going to happen, which is why I think I find it so difficult to contact people and speak about it. So any advice would be Great!!


You have nothing to be ashamed of.. trust me, there are people on here who never imagined in their wildest dreams that they would have to face what you are now facing. But it happened and they survived ..
You are not on your own ..promise xxx

National_Debtline

splashin wrote: »

Ok where do I start. I have buried my head in the sand for far too long. And now I just don't know what to do, who I need to speak too or what I need to prepare myself for.
My Mortgage Lender repossessed my house on 17th March 2014. I left the property days before the Bailiffs attended with a locksmith. I never handed the keys back. In fact I've never spoken to anyone about the situation, because they were demanding arrears in full. Which I never had. And I had only a small amount of available money each month, to make them an offer of a plan to repay the arrears, so I just gave up and allowed the repossession to happen.

(...)

I am ashamed of everything that has gone on and is going to happen, which is why I think I find it so difficult to contact people and speak about it. So any advice would be Great!!

Hi splashin

Whichever debt charity/ies you seek help from, rest assured that the above is a scenario they will be very familiar with. This happens to far more people than you might imagine, and in the vast majority of cases comes about due to events totally beyond their control. So please don't waste any valuable energy feeling guilty or ashamed - save that energy instead for ensuring you can make the best possible progress from now, and acting on the excellent posts above.

Our guide to bankruptcy is linked to in ifwisheswerehorses...'s post above.

Good luck

Dennis @NDL