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scared
Junior Member
United Kingdom
220 Posts |
 Posted - 05 July 2008 : 19:03:25
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My husband and I are filing for bankruptcy at the end of the month. We have a mortgage and a secured loan. We have an extremely large credit card debt. We were coasting along for a long time thinking we would be able to pay debts off soon, possibly with an IVA.
However, my husband was made redundant just before Christmas. We have never missed or been late with any payments, but will not be able to pay many of our bills, including the mortgage and secured loan in August.
Hence, we are filing for bankruptcy. We have no equity in the house either, so there wasn't the option of selling. We are very scared as we feel we have been living a lie for a long time, burying our heads in the sand and just paying minimum payments on credit cards.
Will the Judge make the bankruptcy order?
Also will we be able to rent a property if we are made bankrupt. If not, can we rent a property in someone else's name?
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kramsenrab
Junior Member
United Kingdom
199 Posts |
Posted - 05 July 2008 : 20:06:33
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Hi Scared,
I am in exactly the same boat as you except for the fact that I have tried 2 self employed ventures that have failed, while my husband has been working all the time. Even so we have managed to live way beyond our means which has left us living off credit until now when we have finally reached crisis point. We too have no equity in the house, so I understand that it is safe. However I think that we will lose the cars.
I think the judge will make the BR order, but it will then be down to agreement with the official receiver as to what happens with assets and if & how much we pay into a payment plan.
I'm not sleeping and have never been so frightened in my life, but we got ourselves into this mess so we'll have to just be grown up & deal with it.
You will find that everyone on here is very supportive and I have already gleaned so much information that's really hepled me.
Please keep posting so that we can all support you and hopefully give you some useful advice too.  |
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melanie_giles
Senior Member
1191 Posts |
Posted - 05 July 2008 : 20:15:47
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Hi Scared and welcome to the forum
I am sure the Judge will make the order, as your reasons seem absolutely genuine. You cannot legally rent a property in someone else's name, so you might be better looking for a suitable property before you file just in case credit checking becomes an issue.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 05 July 2008 : 20:16:08
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Hello and Welcome,
The judge will declare BR if you are technically insolvent now. That means, how much money is left over once you have taken out your cost of living? I'm guessing hardly anything, hence why you cant pay your creditors. If that is the case and you cant afford a DMP or IVA, then the judge will see that BR is now your only option. The OR will then look at your I&E and decide form there on how to deal with assests etc. If your home is in negative equity then you can keep it (should you wish to). I'm not sure about the secured loan though as I've never had one. Is that to be included in the BR? Is that allowed?
Just keep reading and posting and you will soon be armed with all the info you need, to help you get a good nights sleep and see a brighter future.
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
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scared
Junior Member
United Kingdom
220 Posts |
Posted - 05 July 2008 : 22:07:19
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| Thank you all for your advice. It is a very lonely feeling being in this situation. As you say, we got ourselves into this mess in the first place and feel very silly. I wish we had known about ways out years ago and we could have sorted ourselves out then. I'll keep you posted about our situation. We are going to file bankruptcy on 24 July. Will let you know how it goes. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 07 July 2008 : 18:07:46
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Hi there hope all goes well. i am in a similar situation and i am waiting to get my BK hearing date. We too have lived beyond our means for a while now and tried to keep on top of things and cannot now see a way out other than BK due to have little or no available income to offer our creditors.
We have agreed with the finance co to take the expensive car and also been trying to refinance and refinance over the years getting into more and nore debt, i had been ill for a while, then hubby had a loss of wages then it all went pear shaped.
Managed for a bit to pay minimal to creditors but at that rate when we did have available income it would have taken 100 years or more at that rate and thats why we have looked at all the options and finally realised the only thing we can do now is hold up our hands and say we cant do it anymore and were sorry.
We have not lived like kings have no expensive items, the house and the car thats about it, most of our debts are refinancing, credit cards, and adding to the home to make a 2 bed place bigger for 5 of us.
Anyhow i will let the site know when i get my date and good luck.
I too am nervous about getting the YES we agree I dont know what i would do if they say no.
Im hoping they will realise from telling the truth about how we got into this and how we tried to rectify it and keep it going ok will help it to go smoothly.
Take care
Jo |
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scared
Junior Member
United Kingdom
220 Posts |
Posted - 07 July 2008 : 18:49:48
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Thanks for that Jo. I am sure you will be okay. It makes you feel like a failure really and I have been feeling ill with the stress of it all. At the end of the day, we obviously wanted to pay our debts but when my husband was made redundant he couldn't find another job. I think the climate is pretty bad out there and I don't think we will be in a minority of people trying to get out of it. I just wish we had looked at an IVA earlier, but we kept putting it off thinking something would come around the corner. It never did.
Good luck, and keep me posted with your BR.
xx |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 08 July 2008 : 11:19:17
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Hi There Scared
Well I have my date now its 4th August at 9am. I have 27 days just under 4 weeks to go and wow i cant wait now to get it over and done with.
I hope that your going on ok and that if you need someone else to talk to maybe we could arrange this sometime.
I just wish the bank would stop calling us, we have written to them and advised situation and still the calls keep on coming.
Anyhow hang on in there i dont think we are the only ones judging from this very helpful site and thanks to all the other users and advisers i have been able to put some questions to rest and start to get my life back on track.
We are taking out kids out for a treat in 4 weeks a Dr Who day out at our local RNAS and to be honest it will be great, we have not been able to afford even family days out with them for a few years so this is going to be exceptional.
Take care
JO |
Edited by - Needafriend on 08 July 2008 11:21:10 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 08 July 2008 : 14:57:39
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Hi all,
The key here is to not beat yourself up too much, as it won't change anything. What's done is done, so just draw a line under it and start again. As long as you've learnt from your mistakes, BR can be a very positive experience.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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Topic |
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Will the Judge make the bankruptcy order?
