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Bossc@
Starting Member
United Kingdom
25 Posts |
 Posted - 16 January 2009 : 23:28:40
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Hi all
Have been having a good read of the postings on here. Myself and other half are both petitioning for BR on 22nd. Things couldn't seem lower at the moment. We have an 18 month old and a 4 year old. She has been suffering from various mental disorders since I met her but she hides them well. Depression, anxiety, OCD. Shes been seeing a counsellor for these for a long time but its just about tipped her over the edge, these last few weeks.
We got into trouble around about 4 and a half years ago, she was 3 months pregnant and was made redundant as the company she works for went bust. She got a job working in an call centre though, working nights so I had the baby on an evening when she worked. When we first got into trouble, a lot came out re our finances, as she ran them. I never saw a bank statement or credit card statement ever. Anyway, we restructured our finances and I put everything in my name so if anything ever happened between us then she could walk away with our oldest and I'd take up the debt as I could afford it. Over the years since then there has been a succession of other credit cards etc. We dont lead a lavish lifestyle, no flash cars, holidays etc and as far as I was aware, the finances were running smoothly. Then our youngest 'happy accident' came along.
Last year we had our renewal mortgage advice with Northern Rock (before they got bailed out and who wanted an additional £300/month to carry on the mortgage) we had no choice and looked around and got another mortgage deal with a lender - the only one lending at the time.
Anyway, last November she told me that we were in trouble and after talking to a friend from the counselling sessions that we needed to contact our creditors to try to make arrangements. the letters were drafted according to budget and I signed them and posted them. We contacted our mortgage company who advised that they could drop our payments from £900 to £530 if we took up their standard mortgage rate but it would cost us £7k - bearing in mind renewal is in 2 years then that £7k over 24 months roughly equates to paying our existing mortgage anyway.
Two days after I sent the letters the other half informed me that as well as the debts in my name, she had managed to take out unsecured loans to the value of £40k - God knows how as her wages wouldn't cover those but when asked where it went it would appear she had been robbing from Peter to pay Paul for a very long time, whilst maintaining an air of normality. Plus, she is now out of work. the company she works for is part of a bank and an IVA or BR is classified as gross misconduct so is sackable, shes currently on long term sick leave for her mental issues. Shes informed the company already as she wanted to be up front and honest. Shes been given the option of resigning or being dismissed.
Please dont get me wrong, I'm not absolving myself in this as I should have taken control, as her mental state is fragile at best but its time to face the music and live in the real world. My only thought is protecting her and the boys.
We have no choice, we have to give up the house (we've contacted the mortgage company 4 times and each time we have spent 20 or so minutes being 'blind transferred' or quite frankly abused. They wont consider a third party beneficial interest or change of interest rate but will help by letting us stay in the house paying or existing payments and work with us to sell it in the meantime.) Anyway, we've secured a rental property as its much cheaper and will be handing the keys back on 30th.
I have no doubt that we are in this for the long term but I'm concerned re the car. May seem shallow but we will be moving to the next village from us. This allows my oldest child to continue at the same school and my wife to continue to see the same counsellor as it is in the correct catchment area. I have a business needs vehicle and have private mileage allowance. My wifes car according to Parkers is worth £4.9k, to get to school would require a bus trip followed by a 1 mile to and from school walk, 4 times a day with a 4 year old and an 18 month old. As well as the trips to the counsellor etc. I understand that the cars gone but are there any extenuating circumstances that will determine that we could be given some of the proceeds to buy a more 'reasonable' vehicle? My wifes doctor is writing a letter to include in the petition but being stuck in another village without a car could, quite honestly, push her over the edge. This may seem petty but its a lifeline for her, I just want to protect her and the boys.
What is the likelyhood that she could be left without transport? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 January 2009 : 23:54:20
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Hi
and welcome to the forum ( like the name !)
the options you have with the car are:-
1. Petition as you are. The official receiver will the arrange to collect the car in due course and hopefully send you a cheque for around 1500 - 2000 to buy an alternative car with.
The problem with this is that you need a car to find a car, and while the process of sending a cheque / cheque clearing etc occurs you haven't got a car.
2. Manage the situation BEFORE you petition for Br.
You downsize the car yourself and with the remaining funds you could use this to petition for your bankruptcy.
The benefits of option 2 are that you are in control and are less stressed or pressured in choosing an alternative car. You also have the financial benefit ( 2 x £495) of using some of the balance of sale for court costs
In my personal experience most people rush too quickly into bankruptcy and while it is critical that the home be sorted out ( well done!) there is no absolute reason that you need to go to court the day after.
It is a stressful time so everything you can do to minimise the stress and maximise the benefite to the family the better,
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Bossc@
Starting Member
United Kingdom
25 Posts |
Posted - 18 January 2009 : 12:32:14
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Thanks for the reply Paul
the mother in law has the funds ready and is indeed giving us the money to pay for court costs as we dont have them to do it ourselves.
Another question though - after looking at the parkers guide price of £4.9k and getting trade in prices varying between £3.5 and £4k, does the OR automatically take the Parkers guide. I'm presuming that the vehicle will simply be put out to auction and factoring in fees etc I've had 4 different garages give £4k as a maximum - obviously without wanting to antagonise anyone and wanting to comply full with the instructions, is it viable discussion or a moot point?
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 18 January 2009 : 19:19:05
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Hi
the OR will have their agent assess the value of the car and they may well use a number of sources.
However unless you can find the difference between the £2k limit and the assumed value then the car has gone.
Just to reiterate my first post - by controlling the situation yourself you would benefit by not using your mother in law's money and would be able to fund the process yourself.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Bossc@
Starting Member
United Kingdom
25 Posts |
Posted - 19 January 2009 : 08:47:58
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Again - thanks Paul.
The mother in law is going to lend us the funds for the bankruptcy petition as we simply dont have the cash. She has other funds available so I think we can only try and see what they say.
Another question if possible. When going through the assets we have do we basically list everything or is there a guideline for items over a certain value. We have an LCD TV for example which is probably worth around £700, thats the only item I can think of that has any considerable value but how do we value beds, furniture etc as I have no idea what their residual value is. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 19 January 2009 : 09:37:34
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Hi Bossc
Welcome
Dont worry about general household items like your beds, sofas, washing machines unless they are of an extremely high value. The LCD TV would only be minimal value now so i would not sorry too muach about that either.
Take care and i hope things work out for you
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
24 Weeks down
 Yippeee!
28 to go
 Im getting there!
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
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Bossc@
Starting Member
United Kingdom
25 Posts |
Posted - 19 January 2009 : 11:03:54
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Thanks for the reply.
I'm obviously wanting to be completely above board with everything. I feel like a criminal as it is. I'm quite happy to do a room by room list if required but would have no idea as to how to price things.
There are things like game consoles (15 months and 3 years old respectively) and a camera which are probably the only things with any value and they are probably not that great. The kitchen appliances are all 7 years old and the suite we bought 2 years ago.
The TV can be bought new for £900 and I'm more than happy for that to go - at this moment I'm more than happy for everything to go - barring the kids stuff. |
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movin on
Average Member
United Kingdom
946 Posts |
Posted - 19 January 2009 : 12:14:25
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I too was worried about what to list etc. but as Jo says it is probably worth alot less now, and then they would probably get very little at auction. I did not mention anything on my forms - merely because like you, everything is years old and not really any value - its just that i cant afford to go out and buy new ones 
Good luck
Jenny
xx
Onwards and Upwards is the way im going :-0)
From "Moneyworries" to "Movin On" in 3 months is fantastic :-))
xx |
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