|
|
 |
 |
FORUM |
|
> Browse and post on our forum |
|
|
|
 |
|
 |
| Author |
 Topic  |
|
|
sinking ship
Starting Member
United Kingdom
3 Posts |
 Posted - 07 December 2010 : 21:17:41
|
| I have lots of debt, no savings & do not know whether Bankruptcy will improve my life or make it worse (it's already really bad now). I have around 21000 on 2 credit cards, a loan which I need to pay back 19000 and have a house which may have 10 to 30k in equity. After paying monthly debts %& living expenses - i have cut out any luxury, entertainment in the last 2 yrs, new clothes, reduced food bills to as low as i can go, have about 100pounds spare a month. am not behind on anything, but i have had to rent out my home & now my tennant has lost his job and is paying housing benefit when he gets it and not all the time which does not cover even a 3rd of the mortgage payment and now i live in room in a house with 3 other people. While tenant lives in 3 bed house all paid for by tax payer, even if i did evict him, it would take a few months and if he challenges it, will cost me money i do not have. I am paying minimum on both cards and a fixed amount on the loan. I have no savings and no way of making any and at this rate it will take me years to pay off the debt, but should anything go wrong - like a big bill for the house - even of just a few hundred, then i would behind and it would only get worse. I have no way of earning any exta money and am stressed all the time. I avoid family and friends so i do not have to spend any money going out, even for just a coffee which is a luxury to me. Every month i have had some type of set back - first the rent from the tenant, then a repair to the house, i have 2 big gas and electric bills, which i cannot pay this month. I am desperate. I contacted the CCCS charity about 6 months ago, they said they could only offer me a solution that would basically save me 50pounds per month, but i would be debt free in 5 years. But if anything big happens just over a few hundred pounds, i will be in trouble. Could a bankruptcy be a solution or is that just more trouble and stress? |
|
|
Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 08 December 2010 : 00:30:24
|
Hi,
I'm not a debt adviser, but was until July an insolvency examiner, however it would appear bankruptcy maybe an option that would help in the long run, and it's not as stressful as you may think, however there are other experts on this site who can advise on you options such as Paul Johns.
As for your situation, the one thing I can comment on is the property. If you do go down the route of bankruptcy, then as it is rented out it would not be classed as the family home, and you would have no control over it. It has equity in it, which would mean that the OR(Official Receiver) would seek to appoint a trustee other then the OR to realise the equity in the property for the benefit of your creditors.
Even if you were living in it, it is doubtful if you could keep it, unless you could come up with the £40,000 or so to pay off your creditors, so either way, the property will more than likely go to a trustee to deal with it, if you do opt for bankruptcy.
Big Al |
 |
|
|
Blackie
forum expert
United Kingdom
565 Posts |
Posted - 08 December 2010 : 07:57:45
|
Hi Sinking Ship
Your property, which, by the sounds of it, is your only asset and, as BigAl has pointed out, there is a good chance that you will lose the house in a bankruptcy or at least all the income derived from it. Also, from 1st December, the Official Receiver(OR) can take all your disposable income for up to three years with a minimum of £20.
There is another alternative - a Debt Management Plan which is an informal repayment plan to your creditors. You would need to find a reputable Debt Management House. However for a minimum payment of £70 per month (or thereabouts), you could pay off your creditors - admittedly it may take some years but at least the Debt Management Company wil request that the creditors cease charging interest and that they stop hassling you. Your home will be excluded from the Debt Management Plan ans, as long as you keep up payments to your mortgage company, you should be OK to continue living there.
Please come back to the forum for further advice should you need it.
John Blackadder |
|
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 08 December 2010 : 12:20:46
|
Hi sinking ship
blackie and Big al have given solid lengthy answers, which are very helpful.
IN answer to your title question "will bankruptcy improve my life ?". Once you have consulted the right people and looked at all options then decide that BR is the right option ... Go for it ..
it was a difficult decision at first for me but once i had an expert helping, I knew it was the right call. prior to deciding to go BR we did examine debt management, IVA's, full and final.
Since BR... Debt problems gone, phone doesnot ring, no threatening post to look at every morning, not panics every time a van pulls up near the house. So going BR has improved our life.
Regards Richard |
Edited by - Richard P on 08 December 2010 12:23:33 |
|
|
|
sinking ship
Starting Member
United Kingdom
3 Posts |
Posted - 17 December 2010 : 09:34:58
|
Blackie, thanks for the messsage.
I had looked into IVA's but evertime they basically meant a saving of only about 80 pounds which still leaves me vunerable. I even contacted the charity CCCC i think it is called and they said the same. A friend did an IVA and said she had saved loads but here debts were a 3rd of mine.
I am not concerned about losing the house, as i do not live there and would be happy for my creditors to take the house to pay off the debts if it would help sort things out quickly. I am really exhausted and run down by all this stress and need to bring it to a close as soon as possible as i don't think i can go on my much longer. I find the idea of an iva or bankruptcy really daunting and am terrified it could make my situation worse. Are there people (honest,relialbe,non-profiteering) who can ideally do the bankruptcy on my behalf or hand hold through it?
quote:
Originally posted by Blackie
Hi Sinking Ship
Your property, which, by the sounds of it, is your only asset and, as BigAl has pointed out, there is a good chance that you will lose the house in a bankruptcy or at least all the income derived from it. Also, from 1st December, the Official Receiver(OR) can take all your disposable income for up to three years with a minimum of £20.
There is another alternative - a Debt Management Plan which is an informal repayment plan to your creditors. You would need to find a reputable Debt Management House. However for a minimum payment of £70 per month (or thereabouts), you could pay off your creditors - admittedly it may take some years but at least the Debt Management Company wil request that the creditors cease charging interest and that they stop hassling you. Your home will be excluded from the Debt Management Plan ans, as long as you keep up payments to your mortgage company, you should be OK to continue living there.
Please come back to the forum for further advice should you need it.
John Blackadder
|
|
|
|
sinking ship
Starting Member
United Kingdom
3 Posts |
Posted - 17 December 2010 : 09:36:29
|
Richard, thanks for your message. Who helped you with your bankdruptcy? I really need assistance with this and anyone who can be recommended would be appreciated.
Thanks.
quote:
Originally posted by Richard P
Hi sinking ship
blackie and Big al have given solid lengthy answers, which are very helpful.
IN answer to your title question "will bankruptcy improve my life ?". Once you have consulted the right people and looked at all options then decide that BR is the right option ... Go for it ..
it was a difficult decision at first for me but once i had an expert helping, I knew it was the right call. prior to deciding to go BR we did examine debt management, IVA's, full and final.
Since BR... Debt problems gone, phone doesnot ring, no threatening post to look at every morning, not panics every time a van pulls up near the house. So going BR has improved our life.
Regards Richard
|
|
|
|
Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 17 December 2010 : 10:53:54
|
Hi sinking ship,
as I said before, I'm not a debt adviser, but from what you say, bankruptcy may be the preferred option,especially as you're not particularly bothered if the house goes as a result.
You only have to read some of the posts on here to see that bankruptcy lifts the burden of debt from you, and that once discharged from bankruptcy, you are also discharged from your unsecured creditors, but from the moment you are declared bankrupt your creditors cannot pursue you further for any unsecured debt.
The house may have £10 - 30k equity in it, depending upon how much, depends upon if a trustee other than the OR(official receiver) would take it on,especially if there are significant arrears(but as repossession isn't mentioned, I presume the arrears are minimal, or not in arrears). If the equity was at the lower end a trustee may not take it on especially as there is a tenant who is on benefits which would incur extra costs re evictions, possible court fees etc etc, so the best option may be simply to ask the lender to repossess.
However, I can only advise what may happen in bankruptcy, and how to go about it, but with the property involved I think it may be worth seeking advice from other experts on the site, either Melanie at Jones Giles, or Paul Johns at Reviva.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
|
|
|
|
Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 17 December 2010 : 15:15:25
|
Hi Sinking Ship
I was helped by Paul and his team at Reviva,
although they are based in Taunton they have people around the country.
if paul comes to visit you, hide the biscuits.... no seriously for all the help, support and guidance that his team have and continue to give well worth a phone call or email
Richard |
|
|
| |
Topic |
|
|
|
| bankruptcyhelp.org.uk Forum |
© bankruptcyhelp |
|
|
|
|
|
 |
|
|
|
|
|
Will bankruptcy improve my life or make it worse ?
