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| T O P I C R E V I E W |
| Caro |
Posted - 24 August 2008 : 14:55:56
Help, I am so confused...I hope there is someone out there that can help me. I am in terrible debt and do not know what to do. I will list my debt situation to give a clearer picture of things.
Natwest Loan £19,367
Natwest Mastercard £3761
Egg Card £2019
Virgin Mastercard £3467
HP Loan for Car £2238
Littlewoods £1878
Additions £765
Total outstanding Debt £ 33495
I moved over here in April 2005 from the US and I married a UK National. I originally started with a spousal Visa for the first 2 years which I renewed and was given an indefinite right to remain Visa last year. Starting about a year and a half ago, my husband was working for a company that starting delaying his pay checks as the company was experiencing financial difficulties. Because The MD kept making promises to my husband that things would get back on track, he stuck in there. Well, that was a mistake as the company folded 6 months later so by then we had already started to pile up the debt. At this point my husband decided to open his own company and give that a go so this is where the real debt kicked in as money was coming in dribs and drabs.
Just to clarify, all the debt I listed above is in my name only. None of it is in my husband’s name. I have been on my job for over 2 years and make a salary of around £31000 per annum. On paper I make decent money, but in reality when you take out living expenses, necessities and then all of these monthly payments I am negative. This is where I started to use my Credit Cards for cash advances to help keep myself afloat. I know, this was a big mistake but I was advancing to pay the debts each month but now all of the cards are maxed out. I thought if I can just make it until next month maybe things will pick up with the husbands business and I can stop this vicious cycle I am on. Well, the business will be closing in November after the last project is done as it is not economically viable to keep it open any longer. In the meanwhile, he is going to get a part-time job working nights until he can close the business and get a FT job.
I have looked in to IVA but have decided against it because I can not move back to the US while I am in an IVA. Therefore, I would be stuck for 5 years until it was paid off. I would like to move back with my husband when my son finishes school in 2 years time. I just feel that an IVA is not for me because when you factor all of my living expenses, necessities, there is not a lot of money left to pay creditors.
As of right now, I am only behind on 2 credit cards by just one month. But, I know it is just a matter of time before it starts to landslide. I have stopped all of the direct debits except for my HP loan and the Natwest Loan. But, I know by next month I will have to stop these also.
I currently bank with Natwest so I am scared of what may happen if I cancel the loan DD. So, I have gone to HSBC just to open a basic account to move away from Natwest. I hope this was the right thing to do.
My father-in-law suggested that if I fail to pay the debts they would most likely try a CCJ and that I would be given the option of offering a monthly payment that I could afford. But, I was reading on the Citizens Advise Bureau that if you have any one debt of £15,000 you should consult a professional so this scares me even worse. So, I am in a place where I am confused and don’t know what to do.
I also know that if I file bankruptcy, I will have to wait until it is discharged before I can apply for UK citizenship. But I am not to clear on this so I was hoping that someone out there could give me more info. Can they deport me if I file bankruptcy?
Also, if I file bankruptcy will they restrict me from leaving the country?
I have been reading the posts and looking at the experts comments and feel some encouragement as some people’s stories seem far worse than mine and they have made it through it. I would just really appreciate some guidance and advice so I can get myself out of this mess that I have created. I really feel ashamed that I am in debt like this.
Any help anyone of the experts could provide would be greatly appreciated.
Thanks
Carolyne
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| 15 L A T E S T R E P L I E S (Newest First) |
| Caro |
Posted - 26 August 2008 : 15:49:35
Hi John,
Thanks for the info. I went down to the local Courts today and picked up a BR packet/applcation as my printer went on the blink. While I was there, the clerk told me I should file BR paperwork there. I advised that I had been told that I should go to Strand but she said she double-checked with the local OR and they sad I could file locally. I would prefer to file n London. Does it matter where file?
Thanks |
| John |
Posted - 25 August 2008 : 23:36:57
Hi
when is best to file depends on individual circumstance.
If there are no other points to consider which may affect the timing I would suggest you have all your documents completed, wait for your salary to be paid into your account, remove the cash and go BR straight after.
Once BR open a new cash account and arrange for your salary to be paid into the new account next time around and set up any DD's also.
Within your Statement of Affairs it asks for your personal monthly net income, the household expenditure and other contributions made to the household.
The spouses / partners contribution is entered in section 6. Your personal net income is obvious as are the household expenditures. Your husbands contribution figure DOES NOT have to be his / her monthly net income. Nor can the OR check it. If it is excessively low in comparison to yours the OR will ask why at interview and you should explain why it is low and also advise them it is very hit and miss.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Caro |
Posted - 25 August 2008 : 21:01:13
Thanks John, I appreciate the advice.
I know you can't tell me when to file BR but considering I am not behind except for 1 month on 2 credits cards, when would you suggest filing BR?
I thought I would send a letter to each creditor asking them for a month or two to sort out my finances and in the meanwhile get paperwork and money together to file. Do you suggest this?
Also, what happens when it comes time to determine DI and they look at my income. Will they take into account husbands income towards bills? As I said in first post, his money is coming in dribs and drabs and that is why I am in this situation. It is unreliable. Will the OR just look at my income and then look at my total monthly bills? Or will he/she deduct what they think my husband should be contributing towards them? I am confused about this as it is myself, spouse and son so this would be a house of three. But, husband is self employed so I don't know how he/she will determine what my DI is. I hope this makes sense the way I am explaining it.
Thanks. |
| John |
Posted - 25 August 2008 : 20:38:53
Hi Caro
BR in the High Court has nothing but advantages in my view.
a) All you need is the completed forms and the fee.
b) No appointment required, walk in, any weekday.
c) You will see the OR face to face the same day, his offices are close by.
d) The High Court gets to see the majority of major Insolvency cases so by comparison yours is minor. A local OR may not see it that way.
e) Judgement is no more, or less, severe than anywhere else.
The OR cannot take your husbands van provide it is legally his (registration in his name does not prove ownership). For example, if your bank statements showed that the van was purchased with funds released from an account in your sole name, there's an issue.
If not, don't worry.
Who can know what creditors will do. One may or may not file for your BR.
It was once quite a weapon to threaten BR but the reality is if they succeed they get nothing. At one time they would happily lose one debt by using the threat as the other nine out of ten got the money somehow rather than accept the dreaded B word.
These days our options are few, the stigma isn't there so the creditor gamble to threaten BR doesn't really work anymore. So, in most cases they would go down the bailiff route first in the hope that endless letters phone calls and the threat of bailiffs will do the trick. It's cheaper that way and they may well get something from it.
In the circumstances I would not disclose your previous BR in the US I do not see that doing so will help the OR in any way.
Regarding the forms, there are professionals that will complete the forms for you, or rather work with you to complete them, I offer the service myself in my other life, but I fail to see where you would benefit apart from the comfort of knowing they are correct.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 25 August 2008 : 20:18:28
Nope sorry, im new too so not sure on that one.
Maybe John will know. He no doubt will be back on here later and can help us answer that one.
Till then
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/ |
| Trolly-Dolly |
Posted - 25 August 2008 : 19:34:10
Hi Caro,
Just saw your thread.
There are firms, but as John mentioned earlier these normally help more complex cases. I'm sure you could do it yourself online and with help from this forum.
As for disclosing prev BR. I have no idea! Anyone?
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
| Caro |
Posted - 25 August 2008 : 19:19:53
Hi John,
Thanks for the reply.
I have a couple of questions.
You said that since I am a US citizen I must file in Strand, London. Do you know why this is? Does it take longer? Will I be punished more harsh?
The car loan I have is £197 per month and I only have 14 months to go. I have had the loan since 4/2007 and it was only for 30 months. If I have to give it back it is OK as I can make other arrangements to get to and from work. My husband has a van and it is paid for. He registered it in his name last October. Do you know if the OR will try and take that? He wouldnt be filing BR just myself would be.
The CAB link regardng the CCJ (over £5k one single debt)
http://www.adviceguide.org.uk/
d_what_happens_if_you_are_taken_to_
court_for_money_you_owe.pdf
Sorry it was on the advice guide so if you copy and paste within your browser it should take you to the document.
If I choose to do nothing for a debts such as mine, would it be safe to say the creditors would file BR on me?
As far as finding £10k, I wish I could as ths would solve a whole heap of problems. But, I can't so I need to figure out what I am going to do.
I am worried because I looked at the BR package/application and one of the questions asks if have ever filed BR before. I am not sure how to answer this as have never filed in the UK or Europe but I did in the US with my ex-husband about 7 years ago. It is not on my US credit report anymore. I was told when I moved here I did not need to disclose this. When I moved to the UK I had to start over and any credit had built or re-built didnt matter as UK couldnt obtain the credit file as the US doesnt share it records. I could answer this question no as this would be my first time in the UK filing BR. Could you give me your advice on this?
Also, I think I need help filling out my forms as I want to make sure everything is right. Do you know of any agencies that would charge a fee to help me?
I appreciate all of your help. I know I must sound like such a loser. I feel really bad and ashamed about ths mess I have gotten myself in.
Thanks.
Caro |
| Needafriend |
Posted - 25 August 2008 : 13:39:21
Hi Mark and like John has said "Thank you".
Im not an adviser just an ordinary mum of 3, in the same boat as evereyone else on this site.
Im learning all the time and want to be able to offer any advice to those who are going through the same and so give a little back again.
John along with the other experts are Professionals and have been there done that unlike some of the companies that charge a fee and so they really know what you are going through and I dont want anyone to think that I am just because I have been honoured with EXPERT status.
Like John has said we give advice for free and thats how I have got through this by asking questions and everyone being friendly and helpfull and most of all not judging me for how I got into my mess in the first place.
Take care and good luck.
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 |
Posted - 25 August 2008 : 13:02:20
Hi mark
thanks for that, as per my bio, I know only too well what the members of the forum are going through. Whilst I have now made Insolvency my profession I like to think that the difference between those I work with and other fee charging firms is that we turn away from no one.
If the situation requires it and the client is in a position to pay, then a fee is charged, that's how we make a living. If the client is in no such position or the case is straight forward he/she is treated just the same. The Bankruptcy Help site and forum is entirely dedicated to free advice with the added value of knowing professionals are available, by way of referal, to look at your situation if you so wish.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 25 August 2008 : 09:23:18
Hi John,
Thanks I will continue and learn from you and the other experts that are on here too.
I am enjoying helping others, I may eventually look for a career in advising people like you have but I still have a long way to go. I started on here a day after you so lets just see, I do take in the info and remember it and I hope that for those who need the support that I am indeed helping them through this most difficult of times.
Thanks again.
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 |
Posted - 25 August 2008 : 08:15:53
Hi JO,
As I said before, we all make mistakes, it's how we learn, don't let it bother you.
I've been in this industry full time for 2 years and I'm a long, long way from knowing it all.
For the 1st 6 months it was all a bit of a haze and somehow then it all started to click.
This is a forum, not an advice line and your experience of BR is just as valueable as the technical advice members can gain from it and your support probably more so.
Give it time and you may well find yourself choosing to do this professionally.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 25 August 2008 : 07:35:37
Thanks John for clearing that up. I seem to be confusing people on some subjects. I will have to swot up more or shut up.
TTFN
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 |
Posted - 24 August 2008 : 23:55:40
Hi mark
yes that's correct.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| Needafriend |
Posted - 24 August 2008 : 23:08:28
Oh Mark,
What I was trying to say was the CCJ bit not the debt.
Sorry for any confusion.
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 |
Posted - 24 August 2008 : 20:13:06
Hi Caro
All of the debts listed would be captured in bankruptcy with the exception of the car loan which is secured on the vehicle itself.
Dependent on your need for the vehicle the OR may well allow you to keep it, the finance company, however, may not. It all depends on the vehicle value and how much the monthly payments are.
An IVA over 60 months is not your preferred choice as you wish to return to the US after 2 years has passed. (This part begs the question why you might be concerned on acquiring UK citizenship when BR if you intend to return to the US).
I'm not clear on what the CAB mean by the £15K single loan trigger. £15K is the minimum requirement for an IVA but that's in total not for a single debt, and you would have to have at least 2 more creditors besides.
If you could find £10K+ you could probably try a Full & Final IVA which takes about 3 months from start to close, but I'm guessing that's not realistic.
The problem with the CCJ scenario is much like that of Debt Management Plans, whilst they may be affordable they go on for many years which again restricts your movement.
You cannot be deported if filing for BR and you can travel post BR as long as you leave good contact details with the OR.
As you're not a UK citizen you must file for BR at The Royal Courts of Justice (High Court) in the Strand, London.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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