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orfoster
Starting Member
United Kingdom
4 Posts |
 Posted - 02 February 2009 : 00:46:46
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I am thinking of going bankruptcy as I am finding it so difficult to keep payments on unsecured debts.
I am earning about 1500pm, I have drafted a few figures down incase I need to ammend them. Am weeks away from submitting claim.
I have put my food down as £350.
I am minus £250 without paying any creditors (except mortgage).
I already have a sort of secured debt on the house, its a Homebuy scheme where a Housing Association owns 33% of the house.
Will this affect my bankruptcy?
My girlfiend lives with me and she earns £400pm but this varies,
I haven't put her on the form at all as I understand she isn't responsible for debts, is that correct?
I have a employee car loan so I have a loan that comes out of my wages so I don't see it really, I have 4 years left to pay. The car is worth £4500 aprox, I have to have a car that is reliable for work as I work as an Emergency Responder to expect to be called out anytime day or night, do you think they will try and take the car? I can afford the repayments?
I have a total of £10,500 debt, I have heard from other people that they don't go after houses because of current market, or cars really that much and also they aren't bothered about income attachments for £10,000, I don't think its true but does anyone have experiance of this? |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 02 February 2009 : 08:56:30
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Hi there
From the brief info you have provided i will try to respond but i strongly suggest you take independant advice disclosing the full situation to one of the free bankruptcy service providers such as the Citizens Advice Bureau, Consumer Credit Counselling Service or National Debtline who if have the full picture may be able to give you more rounded advice.
With regard to your vehicle, it is doubtful whether the OR would claim the vehicle as it is required for your employment.
You must read your housing association.shared ownership agreement to see whether there is any clause in the agreement prohibiting bankruptcy - an option you may have is to sell your share back to the shared ownership scheme thus renting 100% of the property which may free up income for you thus eliminating the need for you to file for bankruptcy.
If you have a disposible income in excess of £99 per month a(that is income after your 'allowable expenditure') you may be subject to an Income Payments Order for 36 months.
Have you explored other options that may be available, perhaps if you spoke to one of the Highly recommended Insolvency Practitioners on our sister site iva.co.uk they could provide you free advice and go through all the options that are actually available to you. You have nothing to lose by exploring this option before filling your petition.
Your statement of 'they don't go after houses in current climate' is actually incorrect The Official Receiver will always take steps to realise any potential equity available in a property - the reason they would not take steps to realise equity would be that there was no equity available - all property would be subject to a valuation, and a decision made at that point byu the OR as to what will happen. I always advise clients who have property to obtain a market valuation before making the final decision to file as it may depending on your property situation ahve some bearing on your decision
You should disclose the fact that your girlfriend resides with you and be more realisitic as to your allowances if as you state you have put £350 for a person residing on their own for food this will be reduced by the OR - they have minimum/maximum levels for expenditure
Hope this helps
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
Insolvency Manager
Jones Giles
01446 711780 |
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go_4_broke
Junior Member
221 Posts |
Posted - 02 February 2009 : 12:54:17
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Hi Or
Bankrutpcy may well be a good option for you, but as Melanie points out you need to check your position in respect of income, assets (such as any equity in your share of the house) any rent arrears and your car.
Normally the maximum value allowed for a car is around £2,000, but you have got possibly the best reason I have come across for keeping a better one.
I would certainly agree that C.A.B or National Debtline would be a good first port of call.
You should consider very carefully before signing up to an IVA.
In bankruptcy you would only pay around 50-70% of income for three years and the allowances are much more generous.
Best Regards
Judgemental comments are not allowed, and this post has been slighly edited to ensure that it complies with this ruling.
admin. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 02 February 2009 : 13:10:31
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I'm sorry, but I disagree that an IP will only have one solution for you. By speaking to a reputable IP they will explain all your options to you. As Melanie says have a look at the list of experts who post on IVA.co.uk, this site's sister site.
If you do opt for BR you must put down that your partner lives with you, otherwise your allowances will be cut to that of a single person.
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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orfoster
Starting Member
United Kingdom
4 Posts |
Posted - 02 February 2009 : 13:47:44
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Thanks for your replies.
I will talk to all of the people you have recommended as I want to become debt free and start a fresh.
I have tried debt management plans and have just been really hammered by bank charges as my income has dropped this month (no overtime these days). That is also a problem as I will look like I have more average income but actually forecasts show I am -£200pm.
I got confused about my gf having to go on the form, she earns an average of £320pm which then would pull us into £120 surplus, I am happy to pay what I can afford, its just so so difficult at the moment.
With my car, I am on the documents for it and I have a loan with them for the car, it needed to be under 5 years old at the time of purchase to be able to do my job. I respond to emergency alarm calls from elderly and vulnerable people and to be honest I wouldn't want to put people at risk just because my car wouldn't start.
I got into this mess when I was 16 (long story), my bank hammered me for £800 charges and gave me a loan to pay back, I kept this from my parents at the time as I went O/D and ignored the letters, I was stupid at 16. This then went on and on and I feel like by doing this I would actually start my life.
When I had overtime I was able to pay £250pm towards debts but my overtime has been stopped and my debt increased to more than it was when I started.
Thanks
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 02 February 2009 : 14:28:05
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Your girlfriend's salary won't be included in the calculations for an IPA. When I went BR I put down the amount I listed my expenditure, and there is a section where I put what my partner contributed to the household.
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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orfoster
Starting Member
United Kingdom
4 Posts |
Posted - 02 February 2009 : 14:46:55
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Thanks for that.
I will calculate it all and seek further advise on it all. I don't have much debt compared to some people. Aprox £10,500 but it is just becoming so difficult to pay the debts and by the time they are all paid we can't afford to eat.
So they take into account my gf's income as a household income but don't use it to calculate my IPA?
I am in the process of moving my account to Barclays, I have a basic account with them and don't owe them any money so I will do that anyway before I even complete the forms.
I have reduced my payments just now to my creditors to £1pm just to make a token payment while I raise the cash for bankruptcy.
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orfoster
Starting Member
United Kingdom
4 Posts |
Posted - 02 February 2009 : 16:20:00
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I have been into Barclays today to organise my old account. My account is a Current account with a Connect Card (did have electron) apparently they don't do them anymore.
When I go to the OR they will want me to have just a basic bank account or can I have a debit card?
I thought I didn't owe Barclays any money but I realised I have a Barclaycard, will that make a difference do you think?
I think I need to get a "Cash Card Account" and currently have a Current account.
Thanks.
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Thinking of bankruptcy.....
