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Nene
Starting Member
7 Posts |
 Posted - 01 February 2009 : 16:13:37
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Hello everyone,
I've been browsing this site for a while now and have learnt a lot so thank you. Please bear with me this may take a while now!
We have decided to go BR in June after I have our second child. We've decided with advice that our best move is to move house, change cars and get all the new baby stuff before we go BR so that we're in a more comfortable position to do so.
In the week I met with an expert from a company recommended to me from the helpline on this site. He recommended that in order to pay the fees for his service we take out more credit, also that we should extend our spending so as to not get an IPA but this could obviously leave us up the creek if our situation then changed. I'm also not convinced about how much of the extra spending would be approved. I was under the impression that there are limits on acceptable rental rates etc. Whilst our income will be more than I had initially worked things out on I'm still concerned about increasing everything so dramatically.
I'm also concerned about him having to go back and check that I could go BR jointly with my husband. I only have about £8k debt in my own name but jointly we have about £30k. We're in rented accomadation and when I queried about the landlord being informed he told me categorically that the landlord wouldn't be told, and yet surely they are to check for rent arrears?
I had everything clear in my own mind until I met with this "expert" and since then I'm more confused than ever. I'm planning on speaking to a couple more people on Monday but wanted to get the opinions of the good folks on here. I'm worried about taking out more credit so close to June, I'm worried that as a franchise holder he's perhaps got no more knowledge than me really and might bodge it when it comes to crunch time! I'm concerned that he's so busy trying to sell the service to me he's getting carried away and trying to sweep us up into his enthusiasm and therefore cloud our judgement. It's not what I expected and I do feel sorry for anyone meeting him without a sales background like mine as I can see what he's doing.
Sorry it's so long and probably quite confused. Anyone have any ideas or do I just listen to my instincts?
Helen |
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hadenuff
Starting Member
43 Posts |
Posted - 01 February 2009 : 16:20:48
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Hi Helen
I am also new here and although I have been bankrupt for some time I'm sorry I can't offer you any advice.
I just wanted to say i am amazed that this expert suggested you take out more credit to pay his fee!
Good luck with it all. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 01 February 2009 : 16:26:29
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Hi Helen and welcome to the forum. I'm sorry that you've had a bad experience with this salesman (as that sounds like what he is), but I'm glad that you have questioned it.
First of all, please don't take more credit to pay for something that you can do yourself. If you are sure that BR is the way forward for you, you can complete the forms online on the Insolvency Service website and go to court yourself.
Don't increase your expenditure just so that you don't get an IPA. If the OR has any doubts they can ask for proof of expenditure. Put down everything that you actually spend - the OR can only say yes or no.
As far as I'm aware there is no such thing as a joint BR. You and your husband would have to petition for BR individually at a cost of £495 each. To go BR you need to have a minimum of £750 of debt each.
Your landlord will most likely be told about your BR. Some OR's don't do this, but they are supposed to.
I would definitely recommend speaking to an Insolvency Practitioner, and taking advice before you go any further. They will be able to advise you on all the options open to you and your husband.
Good luck, and BTW, congratulations about the baby x
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/
20 IPA payments made, 16 to go - on the home straight! |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 01 February 2009 : 16:42:14
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Hi Nene
First off may i apologise that through this site you have been put in touch with somone whom has not given you the best of advice. It is important that any one in your position receives full and correct advice for your particular circumstances
Firstly it would be wrong fo you to incur further credit knowing that you are going to file for bankruptcy.
There are a number of organisations available to you that will offer full free impartial and independant bankruptcy advice such as your local Citizens Advice Bureau, National Debtline, CCCS many Insolvency practitioners will also offer a free advice service.
There is no problem in you filing for bankruptcy with your husband for you debts, but you will both be liable for the £495 fee (although there are reductions in you are in receipt of various benefits)
The Official Receiver will write to your landlord as this is standard practice, my advice here is to always advise clients to speak to their landlord to explain the situation, so long as you have paid your rent up to date, your landlord will normally have no problem whatsoever with you remaining in the property, (I have not personally ever come across somone being asked to leave their accommodation as a result of being made bankrupt)
I would suggest that if you wish to secure alternative accommodation due to your expanding family do this prior to filing for bankruptcy, so that the BO does not show up on the search your new landlord may make. Other than that I cannot see from the information you have provided why you would need to delay until June. If this is because you are concerned that you may be required to make a payment under an IPO and may not be able to afford the payment, a change in your circumstances such as new baby, loss of income etc should always be notified immeadiately to the OR so that the IPO payment should be recalculated.
I hope that this response has gone some way to help you with your concerns and if i can be of further help please feel free. I am around for the next few hours and will be popping in and out every day from today, having come across from the iva.co.uk site to help people like you navigate your way through the bankruptcy process. Please feel free to ask whatever you want. Melanie |
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Nene
Starting Member
7 Posts |
Posted - 01 February 2009 : 16:50:26
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Hi again,
Thanks for the replies. As I thought, it's a bit sharp practice to say the least.
We thought we'd wait until June to file because the new baby should be here and any related spending would be out the way. We're in the not very pleasant situation of having to sort the new baby stuff out on credit before we can file and lose it. It's not very nice but it's the way it is at the moment. Plus in June our income etc will all change again with various allowances, and we'll have another mouth to feed so will have a better idea of spending.
I was cross about the extra credit because the fees were much bigger than I anticipated although that may well just be my idea that was well out. Without getting any extra credit we can just afford to do the things we need to do.
The "expert" told me I needed £15000 debt in my own name before I could go BR.
One other question - would nursery fees be acceptable in expenditure? This is the only thing in the extra spending that I would dearly love to be able to do for my little boy but it would be about £250 a month for 2 days a week.
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admin
Forum Admin
239 Posts |
Posted - 01 February 2009 : 18:04:16
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Hi Nene, The helpline is staffed by volunteers and industry experts. If people need more help we put them in contact with companies that can help. Unfortunately it seems as though you have been put through to a company that is clearly not operating ethically. I would like to apologise sincerely for this. The company you were put through to have now been removed from our approved list.
On a side note, we have now launched a bankruptcy assist service which will take you through all the steps of bankruptcy and will have an expert do the paperwork for you. This costs £350 and is a complete service.
If you would like to use this service then please complete this form:
http://www.bankruptcyhelp.org.uk/bankruptcy_assist.asp
thank you,
Admin Team
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 February 2009 : 18:07:11
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Hi Nene
Sounds like you haven't got off to the best start with advice.
You rightly shouldn't extend your credit position knowing that you are to declare Br. There is however no rush to petition and the most important thing is to ensure that you and your family are prepared for the situation through speaking with the landlord or finding alternative accomodation that will suit the larger family ( Congratulations!)
It sounds like the person that you spoke to is relatively inexperienced and doesn't understand that any joint debt is also your responsibility, so as I read it you would actually petition for Br for debts of £38k. ( joint and individual)
As you and the other posters have suggested you may want to do some due diligence and get alternative advice from several companies ( free / charity and fee paying ) and see how you feel.
It may be that you are fine filling in the forms and then you can use this site to ask questions as you go, alternatively you can get limited help from the CAB with forms.
Keep asking lots of questions and you will start to feel more comfortable with the quality of advice.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 01 February 2009 : 18:14:31
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Childcare is included in expenditure, allowances will also increase for food, clothing etc with the additional 'person' in the household.
I would strongly advise against incurring further credit between now and June as you are aware of your financial situation and should not be taking on additional credit knowing full well you are unable to make the repayments.
There is no figure in the legislation as to how much you need to 'owe' to be able to file your petition in bankruptcy - the figure you state you were informed is completely incorrect. I have dealt with people who have gone through the bankruptcy process with very low debt levels which is all relative if you owe £5k and cannot repay the money and have no income it may as well be £50k
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
Insolvency Manager
Jones Giles
01446 711780 |
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Nene
Starting Member
7 Posts |
Posted - 01 February 2009 : 19:54:18
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Thanks everyone. It's cleared a lot of issues up for us and we're now going to change tactics and go with the service linked above I think and no doubt lots more advice from here.
Admin - could you contact me because I've spoken to people from more than one company through your helpline and I'd like to make sure it's the right people you've removed as the other company seemed really helpful. Thank you.
Thank you to everyone for making this a bit more straightforward. It's rather stressful at the moment as you can imagine!
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admin
Forum Admin
239 Posts |
Posted - 01 February 2009 : 21:08:26
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Hi Nene,
an email is winging its way to you.
admin |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 February 2009 : 22:06:52
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Well done Nene
the important thing to remember is that you have a lot more time than you think and it is important to use ALL the time you need to make sure that your family and yourself are making the right decision and get all of your ducks in a row BEFORE you take the leap
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Nene
Starting Member
7 Posts |
Posted - 01 February 2009 : 22:14:41
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That's exactly it, the getting our ducks in a row, but it's quite difficult knowing that if we got a particularly unsympathetic OR it might not go down very well that we'd been spending, albeit not on anything especially luxurious! I don't think a double buggy is quite the same as a holiday in the Bahamas but you never know if someone is having a bad day.
I think by June we should have moved, had the baby so know about new costs and changes to child benefit/tax credits/maternity allowance, plus had time to save the money for the court fee. It might end up being sooner but it depends how soon baby puts in her appearance. I think, having looked at the figures again every which way, that I'm going to put my little boy into a nursery a couple of days a week.
Can I just ask what the general limit is on rent a month for a family of 4 in an expensive area? We're looking at £1000 a month is that too much? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 February 2009 : 22:25:48
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Hi
I think you will be pleasantly surprised by the OR when it comes to babies and new one off costs. They understand that these little folks cost money ( I have 4 girls so I now from experience! )
Clearly it is not a brilliant idea to ruch out and spend money on credit cards for the new arrival.
It is also acceptable to wait and see how the land lies AFTER the arrival before making the judgement to go Br. Too many people rush and who knows what is around the courner.
In terms of rent then it would be the going rate for your area for an appropriate size house.
So if you have 2 little ones and need a 3 bed house then if £1000 is about the average then that would be acceptable. Sometimes new landlords may charge a little more than the going rate because of your credit position, pets, children etc etc. The thing is that you need to be settled WELL BEFORE the due date to give you a chance of getting sorted.
You do not need too much stress and definately do not want it to effect the little one or the family.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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RHB
Senior Member
1159 Posts |
Posted - 02 February 2009 : 14:54:10
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| You might get extra tax credit ti help with childcare costs if bith you & your partner are working. |
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Nene
Starting Member
7 Posts |
Posted - 02 February 2009 : 21:14:51
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Hello again,
RHB - thanks for the suggestion but I don't work and we don't qualify for much in the way of tax credits etc.
I've spoken to Paul at Reviva today and he's given me yet more to think about, so thank you.
I'm beginning to forget what it feels like to be stress free! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 02 February 2009 : 23:40:43
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Hi
Good to talk today.
Hopefully you are now a little more comfortable in that there is lots of time to prepare but priorities first.
New baby & New larger home.
take care
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
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Couple of concerns
