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grantspants
Junior Member
United Kingdom
297 Posts |
 Posted - 17 August 2008 : 13:06:14
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I have had my IVA rejected after three creditors meetings, with Northern Rock being the deciding voter. I have now moved over to this forum as I'm looking at BR as my best route now. I did consider using Baines & Ernst to advise me on Bankruptcy but they charge £450 so am now thinking of going it alone.
My circumstances are : I owe £38,000 on unsecured debts (Northern rock loan, and various credit cards), and I owe £138,000 on my mortgage but at last valuation it was worth £120,000 (around 2 months ago) so I'm obviously in negative equity. My problems really began two years ago when I split up with my then long term partner. I had previously consolidated all my and her debts together in my name as she couldn't get credit. So when she left I was struggling a bit but worked extra overtime at work to try and cover it all. I still couldn't manage everything so used credit to top up my earnings (stupid I know). This year, pretty much all the overtime stopped at work and straight away I was in trouble. I have since met and married but nearly all my debt was from before my wife and I were together.
In June this year I had my epiphany, you know the moment it dawns on you that it can't go on. So applied for my IVA through Baines & Ernst. The first meeting got adjourned, the second meeting the same and then finally rejected. I was going to re-propose it but with all the creditors calling now I think its time to go BR. I have had some advise from Baines & Ernst (or Baker Evans as their BR department is called) and read the rest online, but still need the advice of all you good people. My concerns are :
Should I pay a company to advise me or is it best to do-it-online by myself?
My home - I have been advised that if valued as before it won't be worth the OR selling and that i would probably be allowed to stay in it, is that correct? My mortgage payments are quite high (£992 at moment) due to bad interest rate with company. Currently talking with my wife about whether we want to stay here, would we be able just to had the keys back to the mortgage company and include the shortfall in the BR?
My possessions - I don't have anything expensive really except my plasma TV, what would the OR take?
My car - is worth around £1000 and has a personal plate on it which I bought for £199. would they take these?
My pension - I know they can't touch certain types of pension (after the change in May 2000) but I'm not sure if mine is one of them. I have a Railways pension, from the railway pension scheme. I'm not claiming it yet as I'm only 32! Can anyone advise whether mine is one of approved ones they can't touch?
My wifes income - she is currently working part-time and she wasn't with me when the majority of the debt was accrued. Will they take her income into account with the I&E statement? If she changes jobs and earns more later will they be able to modify our I&E? And if we have a family and she stops working will they modify my potential IPA payments?
I know I may have to make additional payments as I have a good wage, although my mortgage swallows most of it, although if I no longer had the house and was renting, my disposable income would be higher.
I know its a lot of questions, sorry for that. I just need to find out how this will impact our future. Any advice will be gratefully received, i just need to decide once and for all, and do it soon.
Many many thanks |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 17 August 2008 : 14:36:40
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Hi Grantspants and welcome to the forum.
Wow lots of questions. I cant answer any of your questions as i dont have enough knowledge, one of the forum experts will be along soon and will hopefully give you some advice.
As for filling in your own bankruptcy thats up to you, we did ours ourselves as we could not afford the fee, but again the experts are here doing a kind job by giving there advice free of charge so they would be the best ones to speak too about your situation and get the proper advice.
Whilst the forum is very good for general advice each persons case is different and so some advice on here may not be exactly against your own circumstances. John on here one of our experts would be a good one to speak to inperson, he gives up his time even at weekends to help give advice, bless him, but dont forget there is Julian and Melanie and many other experts that would be more than happy to talk to you and also give up there time to answer our questions and queries.
Sorry that I cant really help, I know the forms are reletively easy to fill in, these you can get online fromhttp://www.insolvency.gov.uk/ and then you can petition yourself but wait till you have spoken to someone with more answers before you make your choice.
Take care and hang on in there
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
Edited by - Needafriend on 17 August 2008 14:40:11 |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 17 August 2008 : 16:28:42
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Hi Grantspants and welcome to the forum. I'll try and answer as many of your questions as I can from my experience.
I wouldn't recommend paying anyone to help you fill in the forms. They are fairly simple to do online (although very long winded!) and you can amend them as many times as you want before you submit them.
If your house is in negative equity there is a good chance that you will be able to buy your beneficial interest from the OR for £1 plus solicitors fees - I think it comes to £211 but that may have changed. If you don't want to stay in the house you will need advice from one of the experts - I don't have a house so I can't help.
How much is your plasma TV worth at second hand value? If it's a very expensive model the OR may be interested, although it would be difficult to replace as it's almost impossible to get anything other than a plasma or LCD TV these days! The OR isn't interested in normal household items.
You would need declare your car and the personal plate. Do you need your car for work? If so there shouldn't be a problem with you keeping it. The OR may have an interest in the personal plate, but you would be offered the chance for someone to buy it back.
I don't think the OR would be able to touch your pension, although you would have to declare it on your forms.
Is it just you going BR? If so your wife's income won't be taken into account, although you will have to declare how much she contributes to the household.
If you have more than £100 disposable income you will have to make payments of 50%-75% into an Income Payment Agreement (IPA) for 36 months. There is a table in my blog which shows you how much you would be expected to pay.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 18 August 2008 : 07:41:05
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Hey Skippy,
You should go for a Forum Expert now your knowledge is growing all the time and you are a great help to all as again you have been through this Bankruptcy lark and lived to tell the tale. Of course like the other experts.
Hope your enjoying the Great British Summer  oh sorry we dont have those anymore, LOL
Take care and keep answering those questions you dont arf help us all.
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 August 2008 : 09:02:49
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Thanks Jo, you're making me blush !
I was an expert for a while, but I wasn't well at the time so I couldn't post as often as I should, but I think I'm going to ask nicely if I can do it again!
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/ |
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