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| claire25 |
Posted - 11 September 2008 : 08:57:19
Hi,
Thanks to John for all of his help yesterday.
It turns out that because a chunk of the debt is in my joint names
that i will have to take responsability for all the debt if my OH goes BR. Therefore leaving me in the position where i will have to aswell. This is a really scary propsect for me as prior to all of this i never really had a problem with debt. I could just do with some reassurance really. I mean, what is the worst thing that could happen? Will i be under a financial cloud now for the rest of my life?
I would really like some advice on the next step if possible. I am giving the tennants in our property thier 2 months notice in a few days and then making steps to hand back the keys, in the mean time not making any mortgage or debt payments in order to pay the court fee.
As always, any much needed advice very appriciaited.
Thanks xx |
| 13 L A T E S T R E P L I E S (Newest First) |
| 369 |
Posted - 11 September 2008 : 15:01:21
Hiya,
But if you weren't including everything that you pay back to creditors i.e. mortgage, loan etc....and you just took off what you pay for rent (to your parents), bills, mobile. clothing, food, student loan, hair, from your salary how much would you be left with?
Just trying to see what your Disposible income would be after BR - and see if you would have an IPA. This would not include the mortgage and loans.
So, what would the figure be then?
Obviously they would leave you with some money... Say after all of your bills (not mortage or loans because they would be wiped when you were bankrupt) you had £500 then they would take 50-70% of this each month leaving you with roughly £150 - £200 a month, to spend on whatever you wanted as you would have already included your rent, bills, food, travel expenses etc when calculating your Disposable Income....
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| claire25 |
Posted - 11 September 2008 : 13:57:01
right now? in my current situation?
well in my current sitution - minus the mortgage, insurance, bank loan and overdraft. No taking into account the debt i WILL BE in once my OH goes bankrupt. Then i would still have half my wage left about £500. I havent taken into account clouths or food but im not sure how much the OR would alow me to.
I dont help him with payments to his parens because, again that loan had nothing to do with me and i already pay the bank loan for him.
I do also help him with living expenses. I but him a bus pass which is £60 a month.
I'm having a hard time with the idea that you just allowed to have the basic living expenses. I mean, its not like im a big party girl or anything - far from it. But how do you survive for 3 years with no social life?
thanks so much. xx |
| 369 |
Posted - 11 September 2008 : 13:37:51
Basically at the moment you have minimal debt, but when your partner goes bankrupt you will been in severe debt as the responsibility will pass to you.
I think you should contact one of the experts John or Julian, as they wil be able to tell you the best way to proceed, and the best way of filing in your forms.
If you filled them in at the moment then it wouldn't really look like you needed to go bankrupt - but coupled with your partners then the OR would get the picture.
Aren't you paying for your Partners loan to his parents at the mo? Some of his travel expenses etc?
You can include living costs but like what?
I have already included, student loan payment, food, bills, mobile, clothes, hair cuts etc - there isnt much more they will let you have - you can't put sky down, or social life or anything like that...
How much would you have left over each month, if you took in to consideration all of your out goings? Do not include your loans in this.
Thanks
Lisa |
| claire25 |
Posted - 11 September 2008 : 12:57:36
I understand
The reason that i have to go Br however is because my OH is going to
its its not so much a case of the debt i have personlly but the debt i WILL have when he goes BR.
This is probably why i have a problem wth the idea of the OR because at this exact time i only have one small bank loan in my name which i pay. My name is on a substantial secured laon but i do not pay this because i never got any of the money of that loan.
Another thing i will me liable for this the short fall from the property but we dont know what that will be yet.
So you can see that i need to go BR to prevent my future enevitable situation. If i do go BR then my over draft and bank loan will be gone also. I have a payment i make to my parents, a mobile phone contract, bus pass, small student loan payment (which i know Br doest cover) and then things like food and cloths. Are you allowed any money for living expenses. ie going out?
This is why i am so worried. I mean if the OR is going to take over half of my disposable income for three years insnt that going to leave me pretty broke?
Any advice more then welcome! xx |
| 369 |
Posted - 11 September 2008 : 12:29:29
Hi Claire,
What I think you need to do is write down all of your incomings and all of your outgoings and see how much you would actually have left over etc month. You live with your parents dont you - but you would just write down what contribution you give to them each month.
Outgoings included...rent, all bills (mobile, gas, electric, water), food, travel expenses, car insurance, car tax, petrol, clothing (think you are allowed about £20 for this), haircuts (sometimes allowed this £10), dry cleaning (sometimes allowed this £10).
Then when you have a figure at the end, the OR would look at this and see if you ahve enough to pay into an IPA - if it is less than £100 then you wont, if it is more than £100 then you probably will. And they will take 50-70% of this figure, each month for the next 3 years. (But this will be significantly lower than you would be paying now!)
Savings - any spare money you have the OR will take, so do not save during the period of bankruptcy, after the twelve months are up - you can do what you like!
I'm not sure if there is anyway in avoiding the Zero Tax Code per se, although if you go bankrupt towards the end of the financial year they are less likely to go through all the paperwork to change your tax code to a Zero Tax code.
I went Bankrupt in Nov 07 and I didn't have a Zero Tax Code as it was only 5 months left of the financial year..however, this may not be the case for everyone!
Thanks |
| claire25 |
Posted - 11 September 2008 : 11:59:42
I realised it was a different name after i'd posted saying "hi John" - Doh!
I guess now i have asked all the important quesions and my mind is made up. I just have one other qustion (for now at least, i know, im suh a pest)
When you have your OR interview and they ask you how much a month you need for cloths - what do you put? i havent bought new cloths really for ages. I dont want to put too much and them thinking im over spending?
Also, do they allow you to keep some money towards savings? it would be a great piece of mind to have some so i never had to worry about getting into this position again!
I suppose im wondering - when you enter into the IPA are you just paying the OR most of your money and still feel like you have nothing left?
i would love not to go on zero tax code. The lady in payroll is the office gossip! is there anyway of garunteeing this?
Thanks xxxx
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| 369 |
Posted - 11 September 2008 : 11:47:02
Hi Claire,
We were emailing about this yesterday, (not sure if you think I am John - I'm not I'm Lisa (369) - but maybe you were speaking to John as well...!)
I agree with Hammy though, bankruptcy is not half as bad as everyone makes out it is! I shouldn't worry about the advert in the paper - there are only a small amount of people who read it, and its right in the back of your local newspaper. Your job - I didn't have to tell anyone at work. And I did'nt get a zero tax code - as "usually" if you go bankrupt towards the end of the financial year they do not bother with the zero tax code - not that it would make a difference to you anyway - just means your tax going to the OR (then creditors).
Ask anymore questions that you want to....i still ask questions now and I have already gon ethrough the process and am just waiting for my discharge!
Lisa |
| claire25 |
Posted - 11 September 2008 : 11:44:41
It does make sense but surely not paying tax will have some kind of comeback later?
So, once the ad is long gone, youve got used to your new bank account, the OR recieved the same payment every month and your tax code is sorted out....and your not too bothered about the credit rating wich im not....is that it? Or is there anything else i should know or worry about before sending for the forms?
Thanks again xx |
| hammy0107 |
Posted - 11 September 2008 : 11:33:51
Claire,
Once BR you will be given a zero tax code which means you will not pay tax on your earnings. The extra money in your pay pack is then payable to the OR by way of an income payment order. You will remain on a zero tax code until the end of the current tax year.
Hope that makes sense. |
| claire25 |
Posted - 11 September 2008 : 10:20:30
Hi Hammy,
Your right, i shouldnt be ashamed. Im just worrying about the small stuff now the descision has pretty much been made.
What does it mean to be on zero tax code? xx |
| hammy0107 |
Posted - 11 September 2008 : 10:10:35
Hi again,
The ad in the paper is small and usually hidden away on a page that people don't read anyway.
As for your employment, once BR you will be put on a zero tax code. This could alert your payroll department to your BR, however if you work for a large employer with a big payroll it is just as likely that this will not be picked up on.
Even if people do find out it is important to remember you are doing now what many before you have already done and what many many more will be doing in the future. It no longer carry's the same stigma it used to. It is your legal right to go BR so don't worry what others think.
Good luck and keep posting. |
| claire25 |
Posted - 11 September 2008 : 09:57:36
Thank you so much for you lovely post!
Is the ad in the paper a big one?
I work in an office in administration but i am looking for a new job and have sent out lots of applications - will my present or new employer be informed?
The more i think about it the more i feel t is the right descision for me but also the more questions i am comming up with - eiher the forum will get sick of me soon or i'll be an expert myself by the end of it lol!
thanks again xx |
| hammy0107 |
Posted - 11 September 2008 : 09:47:32
Hi Claire,
BR should never be taken lightly but equally it really is not as scary as you might think. I have been BR since June and to be honest it is the best decision i have ever made. Nothing has really changed much, apart from being debt free of course. My main concerns before going BR were 1. Ad in the papers - Nobody has mentioned seeing it 2. The OR interview - OR was very understanding and the interview was painless.
Of course you will have this on your credit file for a good time but if you are like most on here, you will not be interested in obtaining credit for a very long time anyway. The only other real effects are on certain types of employment and if you have any assets. Other than that it is fairly painless and if it is the right thing for you then you should not feel ashamed, in fact you should feel proud that you are taking action rather than burying your head in the sand.
Good luck and remember we are all here for you. |
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