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Caro
Junior Member
United Kingdom
177 Posts |
 Posted - 24 August 2008 : 14:55:56
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Help, I am so confused...I hope there is someone out there that can help me. I am in terrible debt and do not know what to do. I will list my debt situation to give a clearer picture of things.
Natwest Loan £19,367
Natwest Mastercard £3761
Egg Card £2019
Virgin Mastercard £3467
HP Loan for Car £2238
Littlewoods £1878
Additions £765
Total outstanding Debt £ 33495
I moved over here in April 2005 from the US and I married a UK National. I originally started with a spousal Visa for the first 2 years which I renewed and was given an indefinite right to remain Visa last year. Starting about a year and a half ago, my husband was working for a company that starting delaying his pay checks as the company was experiencing financial difficulties. Because The MD kept making promises to my husband that things would get back on track, he stuck in there. Well, that was a mistake as the company folded 6 months later so by then we had already started to pile up the debt. At this point my husband decided to open his own company and give that a go so this is where the real debt kicked in as money was coming in dribs and drabs.
Just to clarify, all the debt I listed above is in my name only. None of it is in my husband’s name. I have been on my job for over 2 years and make a salary of around £31000 per annum. On paper I make decent money, but in reality when you take out living expenses, necessities and then all of these monthly payments I am negative. This is where I started to use my Credit Cards for cash advances to help keep myself afloat. I know, this was a big mistake but I was advancing to pay the debts each month but now all of the cards are maxed out. I thought if I can just make it until next month maybe things will pick up with the husbands business and I can stop this vicious cycle I am on. Well, the business will be closing in November after the last project is done as it is not economically viable to keep it open any longer. In the meanwhile, he is going to get a part-time job working nights until he can close the business and get a FT job.
I have looked in to IVA but have decided against it because I can not move back to the US while I am in an IVA. Therefore, I would be stuck for 5 years until it was paid off. I would like to move back with my husband when my son finishes school in 2 years time. I just feel that an IVA is not for me because when you factor all of my living expenses, necessities, there is not a lot of money left to pay creditors.
As of right now, I am only behind on 2 credit cards by just one month. But, I know it is just a matter of time before it starts to landslide. I have stopped all of the direct debits except for my HP loan and the Natwest Loan. But, I know by next month I will have to stop these also.
I currently bank with Natwest so I am scared of what may happen if I cancel the loan DD. So, I have gone to HSBC just to open a basic account to move away from Natwest. I hope this was the right thing to do.
My father-in-law suggested that if I fail to pay the debts they would most likely try a CCJ and that I would be given the option of offering a monthly payment that I could afford. But, I was reading on the Citizens Advise Bureau that if you have any one debt of £15,000 you should consult a professional so this scares me even worse. So, I am in a place where I am confused and don’t know what to do.
I also know that if I file bankruptcy, I will have to wait until it is discharged before I can apply for UK citizenship. But I am not to clear on this so I was hoping that someone out there could give me more info. Can they deport me if I file bankruptcy?
Also, if I file bankruptcy will they restrict me from leaving the country?
I have been reading the posts and looking at the experts comments and feel some encouragement as some people’s stories seem far worse than mine and they have made it through it. I would just really appreciate some guidance and advice so I can get myself out of this mess that I have created. I really feel ashamed that I am in debt like this.
Any help anyone of the experts could provide would be greatly appreciated.
Thanks
Carolyne
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 15:25:49
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Hi Caro and welcome,
Your situation is not that much different to the many on here.
I cant answer all your questions but I will give some general advice and hopefully one of the other experts will help out with the rest.
Dont feel ashamed, thats life, your circumstances have got you into this mess and now your taking step 1 and trying to get it sorted out.
I dont think you will be deported just because of your debt and if you declare bankruptcy, its not criminal so I think im right in saying you should be ok.
I also beleive that as long as you keep the OR aware of where you are during the BR term and through any IPA that you may pay then you can leave the country.
Its not your fault so try to relax and let the responses come in and advise you what you can do.
You say you dont want an IVA but im not 100% sure but if your income allows you to be able to pay into one then BR may not be an option as it means that you would have enough to offer the creditors. Like I said im not 100% sure on that one someone else may be able to advise there.
Why not give one of the other experts a call like John, sometimes its better to have a verbal one to one and get more info on your own circumstances, he is also more upto date with that than I am. Im just learning.
Anyhow please keep posting and keep reading and hang on in there.
I hope I have been helpful and anything I have not got right it will be corrected so.
Take care
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
Edited by - Needafriend on 24 August 2008 15:26:24 |
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Caro
Junior Member
United Kingdom
177 Posts |
Posted - 24 August 2008 : 18:14:06
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Thanks Jo. I appreciate you taking the time to respond.
As far as the IVA goes, I called an IVA specialist and they said based on my income and essential outgoings (eg: rent, utilities) I probably would not have enough to offer in form of a payment to my creditors. They also suggested that since I do not own any property or home that BR was an option for me as I really have nothing to lose other than my credit (and pride).
I have been reading up on BR and there was a section on recklessness. Do you know what is constituted as recklessness behavior of the debtor?
Also, what about one of my debts being over £15k, could I hope for just a CCJ or would it be more likely that the creditor would make me bankrupt?
Sorry to ask so many questions I just need to work things out and what is best for me and my situation and get as much advice as I can.
Thanks again.
Carolyne |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 24 August 2008 : 18:36:15
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Hi Carloyne,
If you go down the BR route then your home would be safe as like you have said you dont own it just rent. That is of course as long as your landlord is happy.
I would consider the BR as more of an option because then you can get yourself sorted out and the pressure your under will start to drift away.
The CCJ bit can only be put on you if you default before BR and then they have a few weeks of informing you then it goes to court and then you could end up with the CCJ and maybe a court order. To avoid that if you do seriously go for BR then the sooner you get that option done the less likely it is they can do that, as if it is prior to BR it will stand after BR it wont be allowed. Does that make sense.
If you wait for a creditor to make you bankrupt it may take a long time as they dont go down that route for a while, they will try allsorts to get the money first.
I would seriously speak to John or Melanie and then you will know what your options are for the BR.
From what you are saying I would def do that route, but please talk to John or one of the other experts on here just to be on the safe side as its a hard decision to make and you dont want to just rush in, although from what I can see it may be your only option.
Can you instigate the BR before the creditors do?
If you can find the money and do it before then you can with a little help from us lot fill in the forms online, but also some people prefer to get a professional to do it, they charge but its up to you, totally, you need to be in control.
And no you have not been RECKLESS. We have all done things and wished we had not now your sorting your life out.
Hope I helped.
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
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Needafriend
Junior Member
United Kingdom
344 Posts |
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Caro
Junior Member
United Kingdom
177 Posts |
Posted - 24 August 2008 : 19:48:02
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How do I get in touch with John or Melanie? Will they see my post and reply or do I have to contact them directly?
Thanks |
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John
New Member
United Kingdom
73 Posts |
Posted - 24 August 2008 : 20:13:06
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Hi Caro
All of the debts listed would be captured in bankruptcy with the exception of the car loan which is secured on the vehicle itself.
Dependent on your need for the vehicle the OR may well allow you to keep it, the finance company, however, may not. It all depends on the vehicle value and how much the monthly payments are.
An IVA over 60 months is not your preferred choice as you wish to return to the US after 2 years has passed. (This part begs the question why you might be concerned on acquiring UK citizenship when BR if you intend to return to the US).
I'm not clear on what the CAB mean by the £15K single loan trigger. £15K is the minimum requirement for an IVA but that's in total not for a single debt, and you would have to have at least 2 more creditors besides.
If you could find £10K+ you could probably try a Full & Final IVA which takes about 3 months from start to close, but I'm guessing that's not realistic.
The problem with the CCJ scenario is much like that of Debt Management Plans, whilst they may be affordable they go on for many years which again restricts your movement.
You cannot be deported if filing for BR and you can travel post BR as long as you leave good contact details with the OR.
As you're not a UK citizen you must file for BR at The Royal Courts of Justice (High Court) in the Strand, London.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
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John
New Member
United Kingdom
73 Posts |
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Needafriend
Junior Member
United Kingdom
344 Posts |
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John
New Member
United Kingdom
73 Posts |
Posted - 25 August 2008 : 08:15:53
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Hi JO,
As I said before, we all make mistakes, it's how we learn, don't let it bother you.
I've been in this industry full time for 2 years and I'm a long, long way from knowing it all.
For the 1st 6 months it was all a bit of a haze and somehow then it all started to click.
This is a forum, not an advice line and your experience of BR is just as valueable as the technical advice members can gain from it and your support probably more so.
Give it time and you may well find yourself choosing to do this professionally.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 25 August 2008 : 09:23:18
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Hi John,
Thanks I will continue and learn from you and the other experts that are on here too.
I am enjoying helping others, I may eventually look for a career in advising people like you have but I still have a long way to go. I started on here a day after you so lets just see, I do take in the info and remember it and I hope that for those who need the support that I am indeed helping them through this most difficult of times.
Thanks again.
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
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John
New Member
United Kingdom
73 Posts |
Posted - 25 August 2008 : 13:02:20
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Hi mark
thanks for that, as per my bio, I know only too well what the members of the forum are going through. Whilst I have now made Insolvency my profession I like to think that the difference between those I work with and other fee charging firms is that we turn away from no one.
If the situation requires it and the client is in a position to pay, then a fee is charged, that's how we make a living. If the client is in no such position or the case is straight forward he/she is treated just the same. The Bankruptcy Help site and forum is entirely dedicated to free advice with the added value of knowing professionals are available, by way of referal, to look at your situation if you so wish.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 25 August 2008 : 13:39:21
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Hi Mark and like John has said "Thank you".
Im not an adviser just an ordinary mum of 3, in the same boat as evereyone else on this site.
Im learning all the time and want to be able to offer any advice to those who are going through the same and so give a little back again.
John along with the other experts are Professionals and have been there done that unlike some of the companies that charge a fee and so they really know what you are going through and I dont want anyone to think that I am just because I have been honoured with EXPERT status.
Like John has said we give advice for free and thats how I have got through this by asking questions and everyone being friendly and helpfull and most of all not judging me for how I got into my mess in the first place.
Take care and good luck.
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!"
You can read my blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/2008/08/24/my-debt-free-future/ |
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Caro
Junior Member
United Kingdom
177 Posts |
Posted - 25 August 2008 : 19:19:53
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Hi John,
Thanks for the reply.
I have a couple of questions.
You said that since I am a US citizen I must file in Strand, London. Do you know why this is? Does it take longer? Will I be punished more harsh?
The car loan I have is £197 per month and I only have 14 months to go. I have had the loan since 4/2007 and it was only for 30 months. If I have to give it back it is OK as I can make other arrangements to get to and from work. My husband has a van and it is paid for. He registered it in his name last October. Do you know if the OR will try and take that? He wouldnt be filing BR just myself would be.
The CAB link regardng the CCJ (over £5k one single debt)
http://www.adviceguide.org.uk/
d_what_happens_if_you_are_taken_to_
court_for_money_you_owe.pdf
Sorry it was on the advice guide so if you copy and paste within your browser it should take you to the document.
If I choose to do nothing for a debts such as mine, would it be safe to say the creditors would file BR on me?
As far as finding £10k, I wish I could as ths would solve a whole heap of problems. But, I can't so I need to figure out what I am going to do.
I am worried because I looked at the BR package/application and one of the questions asks if have ever filed BR before. I am not sure how to answer this as have never filed in the UK or Europe but I did in the US with my ex-husband about 7 years ago. It is not on my US credit report anymore. I was told when I moved here I did not need to disclose this. When I moved to the UK I had to start over and any credit had built or re-built didnt matter as UK couldnt obtain the credit file as the US doesnt share it records. I could answer this question no as this would be my first time in the UK filing BR. Could you give me your advice on this?
Also, I think I need help filling out my forms as I want to make sure everything is right. Do you know of any agencies that would charge a fee to help me?
I appreciate all of your help. I know I must sound like such a loser. I feel really bad and ashamed about ths mess I have gotten myself in.
Thanks.
Caro |
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Trolly-Dolly
Average Member
591 Posts |
Posted - 25 August 2008 : 19:34:10
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Hi Caro,
Just saw your thread.
There are firms, but as John mentioned earlier these normally help more complex cases. I'm sure you could do it yourself online and with help from this forum.
As for disclosing prev BR. I have no idea! Anyone?
You can read my blog here;
http://drowningmummy.blogs.iva.co.uk/ |
Edited by - Trolly-Dolly on 25 August 2008 19:34:46 |
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Need Advice please
