| T O P I C R E V I E W |
| turborat |
Posted - 09 September 2008 : 12:47:52
It now looks like my wife & I will have to loose the house as well as going BR!!!
Quickly going over our position, my wife has recently had to give up work again due to ill health which leaves us depending on my income alone (£1650/mnth). My wages were used to cover household essential bills and debt payments (£1660/mnth!!)therefore leaving the wifes wages to pay for groceries, clothes, car, pet food, dentist etc.
Since our wedding in 2005 we have been struggling keeping spending within our means and are forever taking a loan to pay off credit-cards, o/drafts etc and also struggling with my wifes illness (not life threatening)causing her to not be able to hold down a full time job, but we have allways been able to cover payments although using all of my wages to do so.
We have a secured loan of around £23k and unsecured debts around £30k and are having to buy everyday things on another ever-increasing credit-card.
After getting great advice from this forum already on going BR we now find that we will have to have the house repossessed as even going BR we will still not be able to keep up mortgage, secured loan & bill payments and still be able to live on just my wages.
I am looking for advice on a sensible plan of action.
I have read that to start with we would have to miss 3 mortgage payments to start repossession procedings, saving this money to use for alternative accomadation (renting etc). Then after the second month move to the new accomadation.
Would I then be able to miss a couple of months on the unsecured debt to save for the BR fees? As we have had house repossessed would we be able to use the money from what we was paying on the mortgage & secured loan to cover these fees? What happens when the house gets repossessed? Do we just hand keys back & that is that?
We are so stressed & very confused at the moment and would really appreciate any advice or plan of action which could give us something to plan by.
Sorry for the essay but we really need advice as things need to start happening ASAP!!
Thanks in advance! |
| 15 L A T E S T R E P L I E S (Newest First) |
| grantspants |
Posted - 11 September 2008 : 12:49:34
would the OR still want to claim £1500 if he may be able to claim much more via an IPA if he is living in the caravan?
Doesn't make much sense to me, it's worth more money to the BR estate if he has much lower outgoings. |
| John |
Posted - 11 September 2008 : 11:40:11
Hi
sorry to put a dampener on things but, as per Paul's earlier post on this thread, the caravan is almost certain to be claimed by the OR as an asset with equity, albeit only £1500 the OR will still want to realise the value from it.
It is always best to move into a rental PRIOR to bankruptcy as the very fact that your credit file will show the bankruptcy would seriously affect your ability to rent once BR.
Again, as Paul said, you will have a maximum of 5 months from the first month you stop paying the mortgage before being repossessed and evicted so you have a good 3 month window during which you should stop pating ALL creditors to fund your BR fees, rental deposit and first months rent in advance.
I know some have moved into rental after BR so it's not impossible, just more difficult.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
| grantspants |
Posted - 11 September 2008 : 11:22:07
Well i'm no expert, but if I were you I reckon I would go BR while still in the house, then wait to speak to the OR and tell him of your intentions to move into the caravan. You could point out to him that it will free up Disposable income which he will then claim in the form of an IPA which lasts 3 years. If you moved into the caravan prior to BR, then techinically you may be able to afford your payments to creditors and therefore aren't insolvent. Thats just my views, you may feel differently.
 |
| turborat |
Posted - 11 September 2008 : 08:58:55
Does anyone have any ideas on the above questions?
Sorry to be a pain!! |
| turborat |
Posted - 10 September 2008 : 14:23:43
If we were to move into a caravan would we still be able to go BR?
As we would be saving around 900/mnth by loosing house & £330/mnth by not paying unsecured debt and only paying max £500/mnth to live in caravan (no council tax etc) this would frre up maybe enough money to live on in th OR's eyes... wouldn't it?
Whereas if we rent we will still be living v.close to our means and would therefore be ok for BR??
I know wierd questions but hopefully they make sense to someone who may be able to advise!
Thanks again... |
| pix1 |
Posted - 10 September 2008 : 11:24:14
I don't know if you might be able to convince the OR that the caravan is an essential item if it becomes your home. It may depend on the value of the caravan. I would guess that if the OR would, in principle, allow a BR to live in a caravan (can't gypsies go bankrupt?!) it might, as in the case of a motor vehicle, depend on the value of the caravan.
As to handing in the keys and renting before going BR I would advise not moving out of your property until you are dragged out. Remember, if you hand in the keys you will still get a Repossession register reference against the address. However, if you hand in your keys you would not get a CCJ. But would it matter if you got a CCJ? If you go BR the BR reference at the credit ref agency will outrank a ccj and will run for the same 6 years. Yes, it might be a bit easier to get a rental without a BR but all sorts of defaults (don't know if you already have these) or previous ccj's would count against you, anyway. As a rule of thumb I would stay in your property as long as possible. I did. |
| turborat |
Posted - 09 September 2008 : 23:23:59
Wow, thank you both so much!!! That is exactly the advice we need at the moment.
We are going to stop payments, get some cash aside and move into rented accomadation within a couple of months. Sell the caravan then declare BR a month or 2 after that and hopefully can start dreaming about sleeping at night!!!
This website has been a godsend and is a very valuable source of information for anyone in our position.
Thanks again and more than likely I will have another question or 2 as things start to evolve!! |
| scared |
Posted - 09 September 2008 : 22:12:37
Hi Turborat -
My OH and I went BR in July. We have a mortgage and secured loan and want to hand back keys. If we had thought about things carefully, we would have first rented and then gone BR. Unfortunately, ours was a bit of a panic and a rush. I would definitely recommend going BR after you have rented a property, as it is difficult to find a decent house to rent with BR on your credit history. Letting agents look for two things - CCJs and bankruptcy.
Fortunately, we have found a decent place to rent from a landlord in the small ads who was sympathetic about our situation. We were just truthful about it and he doesn't even want a large deposit. We are due to move in on 1st October.
Most letting agents will let you rent. However, they will want three to six months deposit and/or a guarantor. This is a lot of money to find all at once.
Anyway, good luck with everything. You are not alone!!
|
| Reviva UK |
Posted - 09 September 2008 : 21:46:53
Hi there
thoughts for your strategy if Br is the right choice.
1. stop paying secured AND unsecured debts tomorrow.
2. Open a CO OP cashminder account tomorrow over the phone. As soon as you get the account ask your company to start paying your salary into this. Don't wast time get it done tomorrow!!!.
3. It will be 5 months at least before you have to leave the house
4. change your phone number and DON'T give it to creditors
5. Don't live in the Caravan - you both deserve more than that. it will also be harder to move back into a house and you then have storage problems.
6. There is no rush going Br but you need to get the basics sorted out first. Somewhere to live, bank, moving costs etc etc etc . Then you can save for court fees.
You will loose the caravan so I would recomend you control the situation prior to br and if you were to sell it this would help to overall costs such as court fees, rental deposit or even allow you to hire a professional to represent you and hold your hand through the process.
Most of all don't panic and don't rush.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| turborat |
Posted - 09 September 2008 : 20:11:32
Caravan is worth around £1500 but we was thinking we would we be able to use the money saved for accomadation (secured debt) to put towards a bigger van to live in as ours is only very small? Would this be acceptable or do we have to rent bricks & mortar?? |
| harbourmaster |
Posted - 09 September 2008 : 19:58:20
How much is your caravan worth? Would the OR want that, or would it be different if you were to live in it? |
| turborat |
Posted - 09 September 2008 : 19:39:52
Needafiend you have definetly lived up to your username and helped me out with some great advice!
I think starting from beg of next month (as have already paid some secured & unsecured debt)we are going to stop secured & unsecured debt payments and after 2 month move into alternative accomadation which we can finance from not paying the secured debt and once moved declare BR (fees paid for by not paying unsecured debts) than hold our breath and hope all goes well!!
If this sounds dangerous or the wrong way to go about it please let me know otherwise we seem to have a kind of plan!!!
|
| Needafriend |
Posted - 09 September 2008 : 19:21:29
All the things you have said you can do,
Its up to you which way is better as long as when you do go BR that you write the mortgage and the secured debts in both secured and unsecured so that they are captured.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
| turborat |
Posted - 09 September 2008 : 18:59:06
Sorry if I am going round in circles but can somebody confirm if we should have the repossession first then once moved get the fees for BR?
If we have a repossession (by missing 3 months payments on secured loan & mortgage) then move out. Do we then halt unsecured payments to pay for BR fees?
If repossession goes through we we still be ok to claim BR as we will not have the secured outgoings anymore?
Shoud we just stop all debt payments alltogether and move out after 3 months and then immediatly declare BR?
Or should we declare BR now and go for repossession?
Again really sorry about all the questions but really need to be confident we are going to go the right route so all works out well in the end.
Thanks for all the advice so far, hopefully these questions will get the answers I feel I need to start planning the future!!! |
| Needafriend |
Posted - 09 September 2008 : 13:51:18
Hi Turborat,
I cant see why not.
Jo x
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated Needafriend's New Life- A Debt Free One! blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
