It's scary, but I think it's time. I'm so nervous

ginja_ninja_2

I'm sat here surrounded by paperwork from people I owe money to (credit cards and unsecured loans) to the tune of £48,000 to about 7 different companies and I can't go on begging these agencies that are harrassing me to accept £1 a month. I am at a loss as to what to do. I contacted a company who said they could help, and when they realised I had no spare cash for an IVA told me to file for banktuptcy and didn't want to know.

My OH has been disabled since an op on his back a few years ago, and when he could no longer work his £45 an hour job, it crippled us (pardon the pun). I get carers allowance for looking after him, we also have kids, and in between that I have been trying to start my own business with help from the job centre.

We spent all of our savings on trying to keep afloat at the outset before we realised we could get help with benefits, when the money ran out we lived off the credit cards, and then made the mistake of paying back credit cards with other credit cards. If only I had contacted the creditors before.

Anyway, when I finally swallowed my pride and got some advice, I wrote to all of the companies to tell them that we are in a longterm pickle - this was 2 years ago. Most of them were fab, and most of them accepted £1 a month, froze the interest, but STILL sent nasty letters, and still do. Fortunately I never gave out our phone number. Then as they passed the debt on to different agencies we would go around in circles explaining how we got in this mess.

TSB got a CCJ against me a few months ago and I was ordered to pay £2 per month (on a debt of just over £6,000). And now a couple of the other creditors are threatening the same. I will be dead before these debts are paid off though. I received a Statutory Demand which I think is a prelude to bankruptcy from one of the creditors? Although I think it is more bullyboy tactics, I can't be sure! So I think maybe it's time to take the bull by the horns and apply for bankruptcy myself? I don't mind saying I am absolutely crapping myself though.

I am about to finish my 26 week course via Job Centre so that I can officially be self employed, but we will still be receiving SOME benefits as I won't be earning a lot of money.

Anyway, if anyone could help with a couple of questions (sorry this was so long winded):-

Do I need a Solicitor for applying for bankruptcy?

Will it effect my husband's credit score? We have tried to keep his 1 credit card as up to date as possible as we have sometimes relied on it for emergencies, so the debts are all in my name.

We rent our house, our car is rented through the mobility scheme, we don't have anything of worth really other than PC + Software which I need for my business (hopefully!), how do we raise any money to put to our creditors/bankruptcy fees?

Will it effect my brand new business account with TSB (which took months and months of begging to get in the first place because of my credit history!)

God what a mess. I feel sick whenever I think about it.

Any help would be MOST appreciated.

madoldbat

Hi! ginja-ninja.Welcome to the board you will find lots of help and support here.
Sorry to hear about your OH.You must be a wonderful family unit to have coped with so much up to now well done.:T

Ok I am no expert so I know others with better brains than me will be along shortly.But for what its woth I think:-
1.You do not require a solicitor to go BR.
2.If debts are in your name only dont think it affects OH.
3.OR is not as a rule interested in anything like puters,playstations ect unless woth 1000s.As you require your car for your husband and puter I think will come under tools of the trade you should be ok.
4.Sorry know nothing about affect on TSB business account.But someone else will.
5.Some benifits allow reduction of fees.Others will have more details.

Meanwhile a good idea would be to contact CAB and CCCS (we found CAB wonderful) they will help you go through things and reassure you as to what BR involves.You will get that here also but if you do go BR judge will ask if you have taken advice.
Also if you have time post a income and expenditure list so we can have a look and help.
We told all creditors from the moment we decided to go BR that we were taking advice from CAB re our situation and could make no commitments until a soloution was worked out;) this didnt stop them phoning or sending letters but it slowed things down a bit.We did not pay any of them until we had enough money for fees x2.This took 2 months for us .

So please take a deep breath give your family a hug have a cup of tea or somthing stronger and post away we will help all we can.Once you begin it will get better.

ginja_ninja_2

THANKYOU madoldbat, it's such a relief to speak to someone who isn't going to Judge. I could with something stronger than a cuppa tea, but I don't think the pounding in my head will stand it ! lol

I had a few email conversations with payplan months ago hoping for some advice, she was the one who said bankruptcy (or winning the lottery) seems to be the only option, so I will go and talk to the CAB and take things one step at a time. I can't help but worry though.
The thing that worries me most is the freezing of accounts. Benefits are all paid directly to our bank, if they get frozen, we are knackered. What happens with things like Paypal and Ebay accounts? We mostly use them for buying and selling kids stuff, but with Xmas looming, we tend to get rid of old stuff so that we can buy new, it's going to be tough if everything is frozen.

I need to calm down, go and get that cuppa tea

Thanks again, you're very calm, reassuring response really is appreciated.

XX

Toto

First of all welcome, no one here will judge, we've all had debt problems of some sort or another so we do understand. There is nothing to be ashamed of, you did your best to support your family after your husband's op, that's all. It does sound as if bankruptcy would be right for you.

As your husband won't be declaring bankruptcy, could you have the benefits paid into his account in the short term while things get sorted?

You will be able to have a basic bank account but usually it's best not to open one until after you have been made bankrupt, this stops the threat of even a basic account being frozen.

Is the business bank account in your sole name? what sort of business do you have? sole trader, partnership, Ltd? Could your husband open a business bank account, which of course you would have access to?

madoldbat

Hi Ginja, sorry you have to have a capitol:D
Have sent a PM .Hope it helps a bit;)

ginja_ninja_2

Flip, I typed a message about bank accounts and I was logged out ! Try that again then

THANKYOU Toto, having spoken to hubby about bank account, would we be able to transfer the joint account to him or is that a no no? I don't want to look like I am hiding accounts, I can still provide statements for the accounts, but for ease of receiving benefits, it would help if the existing bank account was in just his name if we are allowed?

Our accounts:-

Joint current account (hsbc)

Joint basic Account (halifax) which USED to be for savings (long been raped and pileged) :cool:

Kids Savings Accounts in MY name (tesco) alas also been raped and pileged

My current account (prior to be married) (Barclays) which was frozen when I wrote to them 2 years ago saying I couldn't afford to repay the overdraft and loan

Business account is in joint names with NBV through the jobcentre. When the business course finishes in a few weeks, the account will be transferred into my solename (sole trader). I could perhaps get this transferred to hubby?

What a palava. Thanks in advance.

madoldbat - THANKYOU that PM was a great help

wherediditallgo

Hi ginja_ninja,

I think you should have a read of this page on the Insolvency Service site, as it includes info for the self-employed. The way you set yourself up as self-employed may be affected by the BR restrictions.

DEBTMONKEY1A

Hi Ginga!

Not had much time to post recently...check my previous posts to see my story! Ok...obviously as stated DEFFO get advice from the charities mentioned....then just DO IT!!! You'll probably get your court fees (£150 odd) paid as you are on benefits. Did you know you can get this approved BEFORE you go BR? Just go to the Court.

I'd do it asap! Your credit rating is B******d anyway so a B R would make not much odds-& the split second you leave the court you are DEBT FREE. No IPA/IPO (ie you won't have to pay anything-just make sure that when you start your self-employed job you only earn just enough/certainly no more than £90 spare after ALL expenses-this way you'll avopid having to pay monthly for 3 years)...probable early discharge in 6 months!

Your name will be in a 3 line ad in the local rag-SO WHAT! You'll be on the insolvency web-site for 3-6 months after you are discharged-SO WHAT. You can even get a mortgage after you are dishcharged (allbeit at a slightly higher rate for a year or so & a deposit will need to be saved up).

It was the easiest (& I don't say that in a flippant way) thing I could do to sort my situ out-the OR was very nice as well! There are a lot of 'martyrs' out there who would be ideal for BR (ie no equity/assets, no huge disposable income, etc) who choose to punish themselves & scrimp/save for years. WHY! This is the best route I feel for you. get the advice & do it asap-a HUGE weight will be lifted!

ginja_ninja_2

THANK YOU - it's really encouraging speaking with people who have done it. I was REALLY nervous just THINKING about it, but I think at the end of the day if the worst that is going to happen is I lose my business bank account, so be it. I can't afford a mortgage in today's market, I don't want another credit card. I'm going to do it. 6 years we have been struggling with these debts, enough is enough.

I'm on it tomorrow..

God I feel so much better already !!

susieh_2

Hello ginja,

just a thought about your benefit payments, have you got a family member or really close friend who's bank account you could use for a short time, just till you get yourself sorted. You're allowed to have benefit money paid into anyones account (I work for the jobcentre & also did this myself when we went BR 3 years ago). At least if would give you peace of mind about being able to access your money, you just need to let the jobcentre know the new account details.

Good luck

Susieh

Toto

Good for you ginja, I'm so glad you are feeling more positive. Do give one of the charities a call, the judge will ask if you have taken advice.

Now, I have never been bankrupt so I don't like to answer questions regarding the legalities of this and that. I tend to hang around in a moral support kind of a way. Other people here will be able to answer better for you. That said I am pretty sure you can transfer the joint account into your husband's name. I assume there is no debt associated with that current account? I think so long as you tell the OR that the account is now in your husband's sole name everything will be fine with that.

If I am wrong feel free to slap me folks

It is a big step but I have seen many people go through it on this board and I've never heard one single person say it was a mistake. Everyone has been relieved and very pleased they took the step. Everyone here will help you through every part of the process so you don't feel alone, and we'll all be here to cheer you on as you come through the other side.