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MrandMrs
New Member
United Kingdom
99 Posts |
 Posted - 05 December 2008 : 12:01:15
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Hello
Firstly, can I say that this site has to be the best forum I've found and the wealth of help and information is phenominal.
My husband has been advised that BR is his only real option. He left the military, used his pay out to start a business, which didn't do as well as hoped in the early days, so he ploughed more money on CC's into it - but eventually the realisation hit home that, especially with the credit crunch, people aren't really buying unless it is an essential item. So we are left with a secured debt of £47k and roughly £60k of unsecured debt, with just £1000 at trade value of stock left. It was around the £100k mark but we sold off personal possessions to try and pay the creditors.
Both of us are in full time employment now and both earn fairly reasonable salaries, our house is now in negative equity and we can manage our outgoings each month IF the unsecured debts weren't there. With the unsecured debts, we haven't got the money to live on and would still owe more. We've tried selling the remaining stock but can't even get trade price for it.
Would our house be safe? There are just the 2 of us living here but our children and grandchildren visit regularly. Our house is valued at £131k (it was £180k 2 years ago), we have £129k outstanding on the mortgage and also the secured loan on top.
His car is going back as the finance is crippling and we've already had the letter of termination for the finance. Tomorrow we are going to buy a small car for him as he has to have a car for his job. I am buying it in my name, will this be a problem? The car we are looking at is £4899. I also have another vehicle, which will be for me and that is owned outright.
I'm sure I'll be back with loads more questions as we work our way through the forms. But for now, is there anywhere that gives advice on outgoings allowed for a couple for their day to day living? I have to have a seperat phoneline, broadband and satellite TV as it is a condition of my contract (I get the TV at half price). I work from home.
Thank you in advance.
working towards the first day of the rest of our lives |
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jayne h
Junior Member
218 Posts |
Posted - 05 December 2008 : 12:31:54
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Hi, and a big warm welcome to this site.
As you have already seen, you will get more help than you can imagine on here - I think all of us have been through, or are going through the process.
Personally, myself and my husband went BR on 13th October and, so far, I can honestly say it was the best thing we ever did. I do not feel smug about doing it, in fact, I still beat myself up about it constantly. I now find other things to wake up early and worry about LOL!!!
We are in negative equity with our home - we have a far larger secured loan on our house than you do - but we can afford that and the morggage payments. We would be much better off if we could move and rent but we don't want to - we love where we are, our neighbours, its close to family. Hopefully, we will be able to buy the BI in the house from the Official Receiver. If your house is in negative you may be able to buy the Beneficial Interest for £1 plus £211 solicitors costs - a small price to pay in my book.
Anything we have is paid for out of "our" money and boy is the feeling good! This Christmas will be the very first Christmas where we have not gone further and further into debt to pay for it.
I wish we had addressed the situation a long time ago but, like everyone else, we naively thought that some miracle would happen and our debts would disappear - they don't!
I know that you will find all the support and friendship you need on here - no-one is judgemental and what John doesn't know about the BR process really isn't worth knowing!!!
I look forward to being able to help you in the move towards your debt-free life.
Jayne xx |
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 05 December 2008 : 12:49:37
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Hello Jayne and thank you for the welcome.
We aren't both going BR. There is no point, if we can write off the debts the failed business left then we can, just about, afford everything else. We won't be living the life of Riley by any means, but we will cope.
I think the embarrassment and shame is the hardest thing we are coping with. My husband served 24 years in the military, I had an excellent career and we have never owed anybody, other than a mortgage. We moved halfway across the country 5 years ago, in preperation for him leaving the military. I changed my job to a lesser paid one and my husband had so much hope for our future. He bought his dream car 2 years ago and that is now being repossessed. We both wish we could turn the clocks back, but we can't. Bad decisions were made and, in hindsight, we aren't business people. The stress has made me ill and I am struggling to cope with the fact that my husband owes this money and we have no way of paying it. I have never borrowed what I can't pay and this really goes against all our principles.
But, we have to do what we have to do.
Did you and your husband both go bankrupt? That must have been awful to deal with. Thank you for sharing your experience with me.
Di
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 13:28:24
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Welcome to the Forum, Di
Your not alone and i understand about hubby and the miliatry. My OH was in the forces and we both went BR this year, wish we had done it sooner, but hindsight is a wonderfull thing isin't it.
Anyhow, we will be there to support you through and if you can still manage the mortgage payments and the secured debt payments then there should be no reason why you cant stay where you are.
My beloved car went back, but we could not afford it and one day i will get a little runaround but until then we manage.
If you buy the car for £4899 then the OR may make you buy back the BI in it, if you have to get a car then try if you can to spend less than 2k, i may be wrong but the OR will exempt cars under a certain value ad if you have just gone and bought a car for nearly 5k then it may and i am only saying may cause problems.
I do hope that u will stick around.
Jo
x
17 Weeks down 
35 to go 
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 05 December 2008 : 13:30:58
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Thanks Jo. It does help to realise you aren't alone.
Re the car - is that the case if I am buying it in my name, but hubby will use it for his work? I am not going BR and I am credit worthy. His name won't be linked to it at all, apart from on the insurance as an additional driver.
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 13:34:32
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Hey Di
Then that should be ok, the reason i said is if you were both going BR. You will have to get your OH to mention on the form that he has use of this vehicle.
When is he going BR?
And i love your slogan:-)
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 13:36:02
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Oh and just thought, where is the money coming from to buy the car.
Just making sure that its not linked to him as you will need to keep receipts in your name etc, if ever asked.
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 05 December 2008 : 13:44:05
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Money to buy car is coming out of my salary - I'm taking finance on it. I've just finished paying £190 a month on my car and this one is a lot less. We will use the new one more as the main family car.
As for when he is going BR - we are unsure. He's been filling in the forms. He needs to get all the bookwork up to date for the business as he didn't keep them up to date, so that's a first priority.
We have a joint bank account that his salary goes into, I've opened my own bank account for mine. We are worried what happens to our commitments in the early days after BR? We have been told the joint account will be frozen, so what happens to the direct debits for mortgage, council tax etc - do they get bounced or what? He has also found out that he can't apply for another bank account until he is officially BR. He has a basic Lloyds account and we don't know if he can use that or should open a Coop one, but there are no Co-op banks near us.
My worry is what happens in first few weeks until the OR decides what to do with the account. How do we ensure our bills are paid? If we get his salary paid into my account and move all DDI's over, is that acceptable or not?
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 13:50:56
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Hi u can get his name removed from the joint account and just have it as a single one for you so that you keep all the DDs etc in the same place.
My local Coop is 40 miles away, we do our banking online and at the post office, so you should be ok with the Coop, not sure about LLoyds, are they a creditor and is it a basic account.
Its the banks that close the accounts and not the OR so it may be better to look into the Coop for your OH and take his name from the joint account.
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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Edited by - Needafriend on 05 December 2008 13:51:30 |
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 05 December 2008 : 13:55:11
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We can't do that. We've tried and the bank have refused. It's the sorting of bank accounts that is confusing me the most. When does he open a Coop account, some sites say it's not allowed before BR, but that gives no time to get it opened and get the employer to change payroll details.
And......I just answered the phone to one of his creditors. They are so aggresive. We are ignoring all letters and I'm blocking numbers as we get calls, but it's me that deals with them as he is out at work all day and I work from home.
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 14:00:28
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Hi Di
You can do it before the BR hearing, maybe its better to do that now and get yourself another account do that you can sort out the new DD's etc.
If there is an OD on the joint account you will become liable once he declares BR so that will have to be paid for by you as they will chase you.
I would get the new accounts opened. One for you one for your OH at the Coop and inform the Coop that he may be delclaring BR in the future, then sort out wages and DD's.
It sounds like you need to try and get a plan together, you could give the helpline a call, its free and if they cant speak straight away leave a name and a contact number and someone will get back to you.
That number is 0800 078 9367
But dont Panic, you will get through this.:-)
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 05 December 2008 : 14:14:42
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Thanks Jo ;)
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 December 2008 : 14:34:41
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Hey Di
Its no problem.
If you need me for anything else, dont hesitate to post.
I do think though that you need to get a POA (Plan of action) together and then things will become a lot clearer in your head and you will know which route to take.
There is a lot to think about, and i know that, but if your armed with the correct advice then things will go a lot smoother.
Also dont ever worry about the stigma attached to BR nowadays, it does not exsist, no one worries about it anymore, its one of those things.
We are small fry compared to the large co's out there in the same boat like Woolworths or even London Scottish Bank so forget feeling bad, you look after you and yours, sod the rest ;-)
Take care Di and keep on posting.
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 07 December 2008 : 00:29:29
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Thanks Jo. Well, today we went car shopping and bought a Ford Focus for hubby to use, it's all in my name, was cheaper than the original one we went to see and we collect it next week.
Forms are coming along nicely. Bank accounts are being sorted and the money is ready to pay the court costs.
working towards the first day of the rest of our lives |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 07 December 2008 : 08:34:03
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Thats great Di
Seems to me like you have things well on track.
If you need anymore advice or just a chat give us a shout :-)
Jo
x
17 Weeks down
35 to go
For more info on how i have come through bankruptcy and for links to help, you can read my blog here called:
Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
Needafriend says: Live life to the full, take life by the horns and live a little, otherwise life would be so boring!
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MrandMrs
New Member
United Kingdom
99 Posts |
Posted - 07 December 2008 : 11:15:17
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Will do Jo, and thank you for the support and advise you've given.
working towards the first day of the rest of our lives |
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