| T O P I C R E V I E W |
| Porcorosso |
Posted - 10 June 2008 : 07:13:37
Hi everyone. After a number of years struggling along I've finally had to admit that I cannot clear my debts. Now my income is dropping like a stone. I'm self employed (Private Hire Driver - exciting I know) and right now feel like a rabbit in the headlights. I'm about to go two months behind on my mortgage and i can't pay anything towards my credit cards which are now moving to three months behind. Keeping my car insured for work is becoming a rolling nightmare as they want it paid by DD.
I seem to spend my day trying not to burst into tears as my mobile rings constantly. My home phone rings constantly. But its not anyone i want to talk to! I was going to chase Barclays for some £2700 of bank charges but now I think BR is the only route I don't know what to do, especially as they are not doing anything until the OFT case is resloved.
Where do I start?? Any help would be much appreciated. 
The ostrich has taken his head out of the sand. |
| 13 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 11 June 2008 : 11:25:31
Until you decide to petition for bankruptcy, you remain responsible to your creditors to keep them informed of your circumstances. Only you can decide when it is best to make the application, and of course you cannot do this until you have the £495 fee in cash available.
If your property is being repossessed, the mortgage company will need to get an eviction order before you are required to vacate.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Porcorosso |
Posted - 11 June 2008 : 10:37:49
Ok pithy question time. How long can i save up for? That is at what point do I go for BR? Do I wait for example until I get notice that the mortgage people are going for repossession (as they give 28 days notice??)? What do i say to any debt collectors? I can't imagine it will be long before they are knocking on my door. Or do i ignore them at this stage?
Also if my house is going when do i need to be out by?
The ostrich has taken his head out of the sand. |
| melanie_giles |
Posted - 10 June 2008 : 23:43:35
Your taxi-can would be treated as a tool of your trade and therefore exempted from the bankruptcy process, although you will need to send in accounts to the OR if they allow you to continue trading.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Porcorosso |
Posted - 10 June 2008 : 15:07:42
Ah this is assuming i stay in the house and continue to pay the mortgage and secured loan whilst an undischarged BR. I can't afford to do this if thats what you're meaning. My net income has dropped about £500/month.
The ostrich has taken his head out of the sand. |
| JulianDonnelly |
Posted - 10 June 2008 : 14:54:08
Hi Porcorosso,
Once discharged, you can but back the beneficial interest but it is subject to an Ad Valoreum charge which is 1% of the value of the property. If you don't do this, the person that bought your beneficial interest will own all future equity (to the point where in the future when you've paid off your mortgage, they'll effectively own the house). You can nominate soemone to buy your BI to mitigate this.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Porcorosso |
Posted - 10 June 2008 : 14:49:35
Julian could you expand a bit on the buy back. I saw something about my nominee could buy it for a £1 or so but i didn't follow the buy back. What happens there?
I think I am minded to argue my corner over my taxi. I can't afford to pay for it twice anyway.
The ostrich has taken his head out of the sand. |
| JulianDonnelly |
Posted - 10 June 2008 : 14:44:25
Hi Porcorosso,
To me it looks likely that the OR will sell off your beneficial interest to a third party (who you can nominate) for a nominal sum. You can buy this back once you're discharged.
With regard the vehicle, the OR cannot do anything to stop you from working. However, it is over the £2500 threshold. Speak to the OR and you should be able ti agree on a sum to pass over to keep it.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Porcorosso |
Posted - 10 June 2008 : 14:39:56
Hi Julian. Thanks for the welcome. The property I own has a motrgage of £87k. Plus a secured loan of £6k. The main mortgage has an early redemption penalty of £6k as well. The house was valued at £120k last year. However an identical house to mine is up for £109k. It has a garage and conservatory which I do not. So I reckon mine is worth about £100k. After any fees etc there is nothing left. And the housing market is dead.
I am a private hire driver (taxi basically) My car, which I need for my job is probably worth about £4k or a bit less. If it was taken I would be made unemployed. It would be practically impossible to buy a car for less than £2.5k and get it plated. There are limitations on vehicle age and the MOT would make you weep. And its every six months. My car is 5 and a half years old. If I recall the limit for first plating is 6 years old.
I also have a 15 year old escort with no MOT. I'm guessing they'll be having that.
The ostrich has taken his head out of the sand. |
| JulianDonnelly |
Posted - 10 June 2008 : 13:07:26
Hi Porocorosso and welcome to the forum.
From the information you have provided, it seems clear to me that BR is the right solution for you. This will obviously wipe off your unsecured debt, but what about the property? Do you want to keep it? If so, what's the valuation and how much is secured on it? In addition, how much is your vehicle worth?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| m and v |
Posted - 10 June 2008 : 09:41:29
Hi Porcorosso
It is really important to make the right decision about what you do next if you are sure you cannot go into an IVA or DMP.
You mentioned a property - the experts will need to know how much is owing, current value of the property.
Is it a joint mortgage or just in your name?
They will be able to advise you about your business too.
Good to see you have a co-op cashminder account - it's nice to find a BR friendly bank!
Vicki x |
| Porcorosso |
Posted - 10 June 2008 : 09:27:07
Thank you both for your replies. melanie, unfortunately i have no disposable income. My income does not now cover my normal monthly outgoings. Being self employed worries me because I need to provide financial records?
I have got a co op cash minder ac, hopefully, so i can reset up my DDs. for now anyway.
The ostrich has taken his head out of the sand. |
| m and v |
Posted - 10 June 2008 : 08:12:39
Hi porcorosso - welcome to the foum.
You are in the great company of lots fellow ostrichs - some BR, some about to go BR.
You WILL get lots of support!
One of the BR assist experts will be on line this morning and be able to tell you the best thing to do with regards to your self-employment and mortgage.
I know exactly how you are feeling - but I promise you the panic goes and once you start to take control of your finances again you'll start to feel better.
Going BR is not an easy choice but for me it was such a huge relief - a fresh start.
Once you have made that decision you can start telling your creditors and they will start to back off.
The BR process is fairly straight forward - 2 forms to complete (oneis quite lengthy)- a £495 fee and a day in court.
Court staff and Official Receiver staff I have found to be very understanding and helpful.
The BR assist experts have their own web links from this site - and as you are in business they may suggest liasing with them directly.
Hang on there for one of them to come online.
Kind Regards
Vicki x |
| melanie_giles |
Posted - 10 June 2008 : 08:06:29
Hi Porcorosso and welcome to the forum
Bankruptcy is not the only option available to you. If you have some disposable income, but not sufficient to meet your ongoing liabilities on a contractual basis, you might also want to consider whether an IVA or a DMP might be a sensible option.
I suggest that you contact an insolvency practitioner who will be able to help you to understand all options available, and help you to assess whether any of them would be suitable for you.
The first start is to make that call - you may be pleasantly suprised what is available to you, and also the support that your creditors will actually give you in the meantime when they learn of your difficulties.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
