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pumpkinpie
Starting Member
4 Posts |
 Posted - 03 April 2011 : 09:59:09
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This is going to be rather long I fear.
In 2005 we bought our house for 135k. 6 months later we took out a secured loan to consolidate some of my husband's credit card debt and to do work on the house. The secured loan was for 35k.
In 2006 I had my daughter and suffered from antenatal and then postnatal depression, which made working for me near impossible.
We managed fine, however, my husband having a good job. In February 2008 he started with a new company and a huge pay rise and all was well until that company stopped paying salaries in November 2008, he went without a salary until February when the business went bankrupt. He immediately had a new job and a while later we got some money back from the state. Then the new employer started paying late and eventually stopped paying. Husband took an emergency freelance job in London to tide us over. the business went bust and husband got a new job but within three months that business went too. I know this sounds hard to believe, but it is true.
For the past 8 months my husband has been working freelance in London, while me and my daughter live in the Midlands. He comes home on weekends. I've started to do translations from home and set up a photography business (didn't invest anything into it, had the camera and the lenses) as the cost of working in London (staying in cheapo B&B, food, travel costs) leaves us with a shortfall otherwise.
We just about manage to make all the payments each month, but if anything happens like when my daughter was poorly in hospital in January and we thought she was going to die and my husband didn't work for a week (freelance - no work no pay) we then seriously struggle. Any day he is not working means that we struggle to make ends meets.
We would love to move down nearer to London and rent but we cannot sell the house we are in.
Remaining mortgage: 130k
Secured loan to pay back: 38k
House value: 105k
Shortfall: 63k
Credit card debt: 12k
Very catalogue: 4k (bought something when all was well on buy now pay later and then all the non-paying happened)
Our monthly mortage payments are currently: £833 (but I have sleepless nights over the interest rates rising and we cannot enter a fixed rate as mortgage company won't let us)
Secured loan: £362
Unsecured debt repayment: £550
We have a joint monthly income of £5250
Our outgoings are: £5240
I worry that my husband is sinking into depression because he is away from home all the time and we really just want to live together.
He makes a really good living but we are in such a mess that we just need to earn more and more and I worry about April because of the many bank holidays he cannot work it meanst that we will be £300 short:(
I spoke to National Debtline and the lady said to move down south, secure a rented property, put aside the money for the bankruptcy, hand the key over to the mortgage company and then declare bankruptcy.
Wouldn't that be seen as us delibaretly causing bankruptcy?
where would we declare bankruptcy? In the Midlands or London?
Would we struggle to live after bankruptcy, can they take away all your earnings?
In the long run we want to emmigrate to the US, is there an issue doing that if you are bankrupt?
How long can you not become a director of a company? Not that it is an issue right now but because we are essentially sole traders but it may be an issue if you can never ever be a director again.
Any help really appreciated. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 03 April 2011 : 10:57:19
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Hi Pumpkin Pie
bankruptcy is not the only solution to debt
based on figures above you probably would not qualify for an IVA also due to track record with work and variable nature of your work income, 5 years is a long commitment.
a short term debt management plan may be appropriate
it is not about deliberatly causing bankruptcy, it is positioning yourself so that you can both get through this in the best way, so that you spend some time in financial rehab and can then accelerate forward.
No restriction as to when you can and can not return to the states but again this must be planned properly.
not allowed company director whilst bankrupt (normal conditions 1 year) however having being a company director and closing a limited company prior / during bankruptcy can cause many confusions and issues for you.
pumpkin pie I know that i suggest this a lot on the forum but your situation is complex, i would encourage you both to get one of the experts to come and have a coffee with you and work out a plan.
having a guide who is available to give support to you and husband through the challenges ahead will take a lot of the pressure away
Good Luck Richard,
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pumpkinpie
Starting Member
4 Posts |
Posted - 03 April 2011 : 11:06:21
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| But doesn't that cost a lot of money Richard? |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 03 April 2011 : 11:21:11
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the initial consultation / phone conversation is normally free.
from that chat you will find out, how they can help and improve your situation.
The expert will know your circumstances and they do not want to become a creditor of yours !
when I was initially in real financial trouble i was wandering around virtually blind trying everything and anything to get myself out of my mess,(with hind site i was digging myself into a bigger hole) i stumbled across my expert, we then arranged a two hour home visit, the sense of relief at the end of the meeting for both me and my wife was immense.
a few weeks later we spoke about a fee and came to an agreement for payment and it was not all about ££ and pennies. (he indicated he had 17 different ways fro payment)
the most important thing to me was getting the planning correct
Good Luck Richard,
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Edited by - Richard P on 03 April 2011 11:25:12 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 03 April 2011 : 11:36:46
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Hi and welcome from me as well. I'd speak to one or two companies - visit www.iva.com and speak to some of the firms on there. The advice is free and impartial and there will be a solution out there for you.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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RHB
Senior Member
1159 Posts |
Posted - 03 April 2011 : 12:19:13
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| How about renting our house out & covering some of te mortgage that way & avoiding BR altogether. 5000 is a healthy amount if money for the three of you even with the debt. |
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pumpkinpie
Starting Member
4 Posts |
Posted - 03 April 2011 : 12:50:30
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Mortgage company refuses to let us rent out the house.
Rental quote from three EAs is £400
Mortgage and secured loan together: £1194 |
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pumpkinpie
Starting Member
4 Posts |
Posted - 03 April 2011 : 15:14:01
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I guess there is no solution :( I looked into short term debt management and that is only for unsecured debt and would not solve our house situation and we would be unable to move.
I guess I just have to die so my husband can cash in the life insurance:((( |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 03 April 2011 : 16:55:00
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dont even joke about that
there are solutions and complex solutions require experts as that is what they do best.
you will find experts on this forum who can offer solutions
Good Luck Richard,
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 03 April 2011 : 17:15:34
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Totally agree with Richard - that is not a solution.
If you need help then you can visit www.iva.com for a list of companies and reviews and give one or two a ring - the advice is free and impartial and they will find a a solution for you,
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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kentmikey
New Member
61 Posts |
Posted - 03 April 2011 : 19:09:38
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Hi Pumpkinpie
I would fully recommend going on the IVA site, I gained alot of information but one rule which I wish I was wise to (found the website after I had gone down the IVA route) was that speak to at least three professionals and see what they can offer you.
I am now going down the BR route, just waiting on m failure notice to be issued.
But you have made the most important step by joining such a great and very useful and friendly website here, best of luck
Mikey |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 03 April 2011 : 22:16:09
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Hi
at the moment you can't see the wood for the trees and you are probably confused by what you can and can't do.
You do need to speak to someone who can help you work backwards - i.e. where do you want to be and what final position do you want to achieve. Then - and only then - can you work through all the steps necessary to get there.
I would steer clear of professional advice from companies who only offer 1 solution. you need to explore all of the solutions and you will need to look at how each effects you and your family.
debt causes massive stress and unless you get help urgently you may well go round in circles getting more and more confused and then you are not in control.
I always think that the decision you have ahead is all about you being in control, retaining dignity and feeling positive about what you are trying co achieve for your families future.
Please speak to someone.
Paul
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 04 April 2011 : 08:20:57
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Do speak to one or two companies, and all of the ones on iva.com will discuss all options with you. It's then down to you to do the right thing for yourself.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 04 April 2011 : 10:04:49
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Please take advice pumpkinpie, an insolvency practionor will be able to explain all of your options. I had the same thoughts as you, and believe me, it's not work it as there is a solution.
Please keep posting, we are all here to support you x
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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glafy
forum expert
436 Posts |
Posted - 04 April 2011 : 10:24:16
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I agree completely.
I cannot tell you the relief we felt once we contacted and met our expert. It is a Huge, Huge help.
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
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New and lots of questions
