| Author |
 Topic  |
|
|
Ashamed
Junior Member
189 Posts |
 Posted - 24 August 2008 : 10:56:03
|
Hi All,
I am in depserate need of guidance and some help please. I have a substantial debt of unsecured of about £125k, this has escalated over 10 years looking at it and I am very ashamed. It is mainly due to naivity and thinking I could correct it myself, then I feel pregnant in 2005 and took out loans to pay bills whilst I had 4 months off work. My husband then lost his self employment contract and started a new career as a police officer which halved his salary, then everything spiralled out of control I just kept borrowing to keep up payments and now having just had my second child I need to face facts that I cant do this alone and need a fresh start for me and my family.
We looked at an IVA firstly but we are in negative equity on our property and I feel me going bankrupt would be a better solution. I have scared myself reading the government website though which says that the OR looks heavily into why you are bankrupt and as mine is all my stupidity they can have you bankrupt for 15 years. Also what are the chances I would have telephone interview rather than a face to face as the shame of going to court will be more than I can cope with right now let alone having to sit in front of someone making me feel even more ashamed and small that I do already. I just so desperately want to have a fresh start and like I read have my two small boys grow up without my financial burden and be able to enjoy life and I can teach them to be careful with money as boy have I learnt my lesson.
Also do my work have to be told of bankruptcy?
Any help would be appreciated. |
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 24 August 2008 : 11:04:33
|
Hi
Phew! that's a lot of questions on one post but I understand your concern.
I will try an answer all of your questions but I need a little more detail. The total debt is £125K approx but,
Is your husband still in the police force?
What debts are solely in his name?
What debts are solely in your name?
What debts (unsecured) are in joint names?
Do you both intend to declare bankruptcy?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 24 August 2008 11:04:53 |
 |
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 11:10:15
|
Good Morning Ashamed and a very warm welcome to you,
As your name says dont be, its not a shameful thing and the stigma has since really been removed.
There are many people out there going through or have been through the same and so your not alone.
The interview and the court are not as bad as you may think its just straight forward and your not on trial.
Its now more of a fact of life that we had been thrown the money and now we know we just cant do it anymore, dont go getting yourself in a tiz over it life is NOT worth it honestly, I did mine on the 4th of Aug and im now getting my life on track.
I dont care who knows now as I know I have done something to sort my life out and give my kids a better life, rather than being angry and depressed all the time.
While the government site is good dont go scaring yourself, it is for people that have done exceptionally bad things to get the full 15 years. I mean really bad. A bru or bro which can be placed on us is not as bad as you think, it is a way of them almost giving you a slap on the hand and making sure that you learn your lesson and dont do it again.
Be strong think of your kids and please keep posting, if you do go BR then we are all here to get you through the forms which can be done online and also there for you to get answers but also to share your views, worries and experiences.
We have all been there, thats how we got onto this site, but think of us all as an extended family, we know what your going through.
Cheer up mate and good luck.
I hope in some way I have helped and maybe put your mind a bit at rest.
John on here along with some of the other experts are available by telephone sometimes its better to speak to someone, give them a call.
TTFN
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
|
|
|
soscared
Junior Member
United Kingdom
229 Posts |
Posted - 24 August 2008 : 11:22:53
|
| hi ashamed.. i too have come to the fact this wk that i have no alternative to go bankrupt...i am terrified of the thought of going to court interviews with the or etc....i know that i have been irresponsible and cant explain how i got to this point over the last 18mths or so....but i have no alternative that to make a fresh start and learn a valuble lesson..if they made me bankrupt for 15 yrs so what i will never touch credit again and will live on what i have..since finding this site i am addicted and looking at the old posts i have learnt so much already although i do still feel sick at the thought of whats coming....but know that i least i still have my family..still have my friends and i wont be the first or the last person facing this situation |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 11:24:40
|
Here here Soscared, well said.!
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
|
|
|
Ashamed
Junior Member
189 Posts |
Posted - 24 August 2008 : 11:50:10
|
Thank you for your replies. It does help having others in the same position to share.
All £125k is in my name. Just me would be declaring bankrupt as my Husband is still in the police force, as much as his salary halved he really loves the job and is so much happier doing the job and has a career whereas before the money was great but he hated it and was unhappy so losing the contract was good for him.
We have a house joint names which has a secured loan so we are in negative equity to about £20k.
My husband has about £25k of credit cards and loans in his name alone to which we feel an IVA for him is approriate. I discussed an IVA with someone and said the options either both have an IVA or I go bankrupt and my husband do an IVA due to his job. She said a joint IVA is possible but I really do feel bankruptcy for me is a better option. I would like to move in 5 years to a better area and make a really clean start hence it does not concern me never ever having credit again but a mortgage is needed.
I understand my husband can buy back my title as we are in negative equity? But what happens to the current mortage - which we have never been arrears in 5 years of having it nor the secured loan which is 4 years old. Would the mortgage company refuse to continue the mortgage cause I am bankrupt?
Sorry for all the questions but I need these things cleared in my head before making the decision, it needs to be right for my family.
Also do I set up a cash account now and switch Direct Debits salaries over now? |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 11:57:33
|
Hi dont worry thats what we are here for. :)
My mortgage is still current, they are not bothered that we are BR and unless we default its secured so to speak.
They wont just cancel your mortgage because of it.
John will know more about your other questions but hang on in there, I hope that im right in what I have just said, and your def not alone.
LOL
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 24 August 2008 : 12:30:51
|
Hi
thanks for the info...here goes:-
***Your house is in negative equity so if the payments on the mortgage and secured loan are affordable your BR will have no impact with the lender.
*** An IVA for your husband would be the ideal solution and if you should like me to refer you to an IP I would be happy to do so.
*** The reasons for your debt (stupidity...your words not mine) will in no way suggest a BRU/BRO should be proposed. Gambling, fraudulent activity and recent borrowings with no means of repayment are the most common reasons for BRU.
*** Even if you were guilty of any of these a BRU is not the monster you think it is. You couldn't take out credit of more than £500 without informing the lender of your BRU, couldn't be a judge, magistrate, solicitor with your own practice, estate agent with your own agency, an MP, a director of a limited company or join your other half in the force. But otherwise life is pretty normal.
*** To declare BR you will have to appear in person at the court. Dependent on your particular court's procedure you may, or may not, meet the judge face to face. If you did he will only ask if you have taken advice and understand the repercussions of BR.
He would not comment on the why's and wherefore's of you declaring BR.
*** Normally if you are not self employed or running your own business your interview with the OR's examiner would be over the phone, again this differs from office to office.
The examiner is at liberty to request a face to face meeting at any time throughout the duration of your BR up until discharge, normally 12 months after BR.
*** Your employer is not contacted by the OR but they do contact the inland revenue who will be obliged to notify your employer that your tax code is changed to NT (Nil Tax). This in itself could lend your employer to suspect BR but it's not conclusive. If you can hang things out, the way to avoid this possibility is to declare BR between Dec 1st and Mid March. The inland revenue would not normally change your code to NT in this situation as the new codeing only lasts until 31st March following your BR and they deem it too short a period to be worthwhile.
*** There is little point setting up a new account at this stage as it will be frozen once BR and may be closed depending on which bank. Wait until much nearer the time or immediateely after BR.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
|
Ashamed
Junior Member
189 Posts |
Posted - 24 August 2008 : 13:26:37
|
thank you for your answers.
Why do they change your tax code to NT? I am on maternity leave at the mo until Jan would my employer think it is something to do with that rather than BR?
|
|
|
|
John
New Member
United Kingdom
73 Posts |
Posted - 24 August 2008 : 13:40:51
|
Hi
if you go BR then the tax you would normally pay within that tax year becomes part of your estate.
As such that money should pass to the OR.
So you get an NT tax code and are clearly better off each month as your paying no tax. The amount you would otherwise have paid in tax to the inland revenue thus goes to the OR.
You would not expect to be given an NT code as a result of maternity leave alone.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
|
|
| |
Topic |
|
New looking for help and guidance please
