To BR or not BR, that is the question...

tiredanddesperate

Hello everyone.

I’ve been reading this Forum for only 2 or 3 days and I feel like a weight has been lifted off my shoulders! To read posts by so many other ‘normal’ people who are either going through this hell, or have been through and have come out OK the other side is such a relief. :T

I have learned a lot from you people already and I thank you all. Now I need to learn some more please.

My Situation

Approximately 6 years ago, I had given up my job (self-employed) to help out my OH with his business as it was going really well. Things started to slow up and my credit cards got a bit of a bashing, as well as my overdraft at Abbey. We would probably have been OK, we were managing the minimum payments on the cards, the mortgage (in my name only) was ALWAYS paid on time, as were usual household bills etc, plus 2 personal loans.

BUT (and it’s a BIG BUT – or should that be BUTT!!!!)

Abbey advised me that they were removing my overdraft, because I was no longer paying enough into the account to accommodate a £2000 overdraft. I told them what was happening and that I should be OK in a few weeks time, but they removed it anyway, whilst I was £1500 overdrawn. Not only did I lose that last little bit of cash (between £1500 and £2000) but everything started to bounce.

By the time I had cancelled all my direct debits and set them up on my business account, I owed Abbey around £2300 and had earned myself defaults with both personal loan companies, Abbey and my credit card companies (4). Two of these have actually been made into CCJ’s.

Ever since then I have lived with regular telephone calls and letters. I have been paying by standing order, on and off, to these people, but only very minimum amounts £5, £10 or £20 per month to each, as my income has been haphazard, to say the least!

However, 2005 & 2006 were much better, financially. The business was starting to pick up and, although we weren’t making loads of money, we were covering operating expenses and able to pay wages to our workers and ourselves, for a change.

We also became a family, at long last, to 3 (yes, that’s right, THREE) beautiful boys! No, not triplets, thank goodness. We adopted, and our children are now 7, 8 & 9 and just wonderful. :grouphug:

2007 was not a good year for me, or my family.

We finally gave up with the business, got rid of the staff and I stayed at home looking after the family.

I was diagnosed with Sleep Apnoea in June, which explained why I was falling asleep mid-sentence, playing cards with the kids, whilst typing zzzzz…… (just kidding!!!) In fact I could fall asleep almost anywhere. It seems I have not slept at night for years, without realising it and I have been suffering from Severe Sleep Deprivation for quite some time. This has an effect on your ability to think, analyse and generally organise yourself and this did not help my business at all, as you can probably imagine. I would literally get off the phone from a customer and, not only completely forget what they had just said, but almost forget that they had phoned in the first place!!!!!

My OH finally convinced me to go and see my GP – he sent me for a sleep study and I was diagnosed in June 07. I was told it was fully treatable but I would have to use a machine every night to help me breathe, probably for the rest of my life! Quite a shock. It seems I have been stopping breathing at night, for YEARS, and depriving my brain of oxygen – (that explains a LOT!!! – OH) I would have to wait for the machine (NHS).

Please bear with me – there is a point to all of this stuff, honest!

July 07 my Dad died, unexpectedly and suddenly.

With the adoption process, becoming a family, bereavement, the business stalling, etc etc, and me behaving like a zombie, our income/OH’s business/general admin has been a right mess. How we have existed I do not know, except to say that we have just existed, we certainly haven’t lived!!!!!!!!!!!!!

Autumn 2007, with very little income from OH’s business, I cancelled the DD for the mortgage and all of the standing orders for the defaults & CCJ’s. There just wasn’t enough money to pay them & I couldn’t afford any more bank charges.

Since then the phone calls have not stopped. They are driving me MAD, MAD I tell you!! :eek:

I have done a bit of research (this Forum has given me the most help) and I think I need to go BR.

I owe approximately £45k in unsecured loans/credit cards
The mortgage is £170k, plus £10k penalty for early redemption – house has just been valued at £175k – I am 1 & ½ months behind, with January payment due next week & I don’t have the money to pay it..
I have a Capital One credit card with £700 on it (within it’s £800 limit)
I am on Incapacity Benefit for at least another 4 months - £62 per week
I get Adoption allowance of £321 per week (this is instead of WFTC)
Child allowance of £42 per week
My total income is £425 per week; Household expenditure totals £370 – I have a surplus of £55 per week, without food and diesel.

My OH has outgoings of £424 per week, his income has averaged approx £300 per week for quite a few weeks now. He is £2000 overdrawn at the bank (just within his limit), with a £20k bank loan and HP for our car – all paid OK at the moment.

We have been robbing Peter to pay Paul quite successfully for some years but it looks like Peter and Paul have now run out of money!!

How on earth did we get into this mess?

Questions….

If I go BR will everything be wiped off?

Would I be able to keep my Coventry BS account – it pays everything at the moment and I only have a cash point card for the account.

Would I be able to keep my Nationwide savings account – joint with OH; has a balance of £9.

If I go BR will we lose the car (it’s in OH’s name and he pays the HP)

We are seriously thinking of selling the house and moving into private renting – that would save us approx £300 pm. Do we try & sell or just stop paying the mortgage (not that we can really afford it at the moment)? Solicitor’s fees and estate agents fees are going to cost £3k and I haven’t got that.! Will going BR allow me to stop paying and ‘just walk away?’

I just don’t know what to do. Going BR feels like the right thing to do – a fresh start. And I’m so tired of the responsibility of a mortgage and everything, and all the phone calls and threatening letters. Would going BR really stop all of this and let me start living again?

Sorry everyone – I’m rambling, I know.

Problem with BR. My poor old Dad purchased a new build property in Spain through a company, off-plan. He paid the deposit, but when the time came to get a mortgage (it took forever, due to the fraud scandal over there) he was told he was too old – (they never mentioned THAT when he signed up!!!) Anyway, he put the property into mine & my sister’s name and we got the mortgage (mainly on my sister’s income, not mine). It’s for rental income and the rental monies were always going to go to my dad and mum, to help with their retirement. Well, the mortgage completed in November, but of course, dear old Dad isn’t with us any more. The property, to all intents and purposes is mine & my sisters, even though we didn’t pay the deposit and we won’t ever pay the mortgage. My mum has paid 6 month’s worth of mortgage into the Spanish bank account (in mine & sister’s names) and the rental income should start from around April.

What on earth do I do about this? My mum is worried she’ll lose the property in Spain if I go BR.


I would appreciate any advice, help, ideas, cash, postal orders……… (no personal cheques thanks – no offence everyone, but, like me, you do have a bit of a history, you know!!!!):rotfl:

Sorry for the long post- it must take an age to read it. Imagine how long it took me to type it!!!! Zzzzzzzz …………………….. zzzzzzzzzzzzzzzzz :shhh:

winnie81

Hi tiredanddesperate have a :grouphug: the more knowledgeable folk will be along soon but you needed a hug

Claire x

tiredanddesperate

Hey Winnie81

Thanks for that hug. It helped.

Michaela x

philnicandamy

Hiya T&D I can only echo what winnie says its a little early yet hopefully rich/fermi will be along & be able to help with all things property i'm pretty useless with housing!, BR will wipe everything apart from things like student loans everything else would be gone, bnk accounts are tricky epecially joint named ones, once you decide what to do IF you go BR the banks may close the accounts (i'm not familiar with the coventry account) if its a basic account with no cheque book or OD facilities you may be able to keep...the Car as long as the finance etc is not in your name is fine you'd be able to keep that if its your OH that has, if its anything thats in your name the official receiver would then question

What you ideally need to do before you decide on ANYTHING is contact one of the free debt helplines in my sig below they'll go through a fair few things with you and help you decide on what course of action to take...and besides IF you did decide on BR one of the first things the court asks is "have you saught professional advice"...

Take care
Phil x

tiredanddesperate

Hi philnicandamy

Thanks for the reply. I spoke to CCCS yesterday. They took some details & I have a phone appointment with an adviser booked for next Friday.

Have to admit, just talking to them helped - a lot!!!!

Watch this space people!! I'm getting ready to sort my life out and start living again.

Thanks

Michaela x

Notgotapottoweein

Hi Tired.

Basically do exactly what Phil said.

Seek advice have your full incomes and expenditures to hand when you make the call.

Good luck.

fiveyearplan

I agree with Phil, phone one of the debt helplines in his signature. Keep posting if you have any other questions.

Scarlett.1974

Hi t&d,

Gosh, you have gone through the mill in the last few years haven't you?

As phil said, all your debt would be included if and when you go BR. Your H's car would not be an issue because it's not in your name.

Re the property in Spain - that sounds very complicated but I'm sure one of the experts will be able to advise you further on that.

You say you have a telephone appointment booked with CCCS next Friday - that's good You MUST seek professional advice on going BR, the judge could refuse your petition if you haven't. Make sure you have all your income and expenditure to hand for when they call and all the information of all your debts, it will make it easier for the CCCS person to advise you

You've taken the first, most important step in realising this situation can't continue anymore and if you do decide that BR is the option for you then the advice and help you'll receive from this forum is second to none. Do keep posting, ask anything you're unsure of, the only stupid question in the unasked question

I would like to wish you and your family all the very best for the future, things can only get better from now.

Scarlett xx

Cinderbrook

Hi, I am not anything like an expert but would you be able to sell or even remortgage the Spanish property to pay off all or some of your debts. Or what about moving to a slightly cheaper property. The high redemption penalty could be challenged I think as these fees are extortionate. Maybe it would be possible in the circumstances to work out a deal with the mortgage company - you never know. You seem to be a survivor with everthing that has happened to you of late so well done and keep going! My favourite phrase that I am trying to keep hold of at present is;

It's not what happens to you that matters, it's how you deal with it.

Best wishes,
C

backontheup

If the property in Spain is in negative equity - or there is no profit to realise, you MAY be able to sell your share to your sister for a nominal amount (usually £1 plus legal fees)

How much is the mortgage for, and how much is the property now worth?

tiredanddesperate

I would just like to thank everyone for their good wishes and advice.

I have everything to hand for my telephone appointment on Friday.

Re the property in Spain - the problem is, it's not my property, even though it's in mine & sisters name. It was always meant to be for my parents. They paid the deposit and they (well, my mum now) will pay the mortgage, and receive the rent. The only reason my sister & I are involved is because my dad was too old to get the mortgage, and he was committed to the project by the time we realised it.

Oh well, we shall see on Friday.

Once again, thanks to everyone. I will keep you posted.

Regards

Michaela