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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
 Posted - 19 July 2009 : 23:14:45
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I promise you that if you give it some time to really think about all the options and prepare a plan then you will start to feel better.
As I have said if the house ( not home ) has to go then remaining there for a while will give you the very best chance of moving on a positive note.
Over the years I have met many people in similar positions to you and at the beginning of the relationship it is always stressful because you are well outside your comfort zone.
However looking back at each client who has taken control and handed back their house, they are all in nices houses for significantly less per month than they were paying before. They are all so much less stressed and start to live as families again.
Get a plan,get your ducks in a row and don't rush.
I suspect that if you really needed to you could stay in your current house for 6 - 9 months from now. Much longer than you probably thought
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 21 July 2009 : 12:46:14
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Again, thank you Paul, we are taking your advice and going to save like mad to ensure we have rent for 6 months before we move. I am worried by the mortgage defaulr register. I had aasumed afer 6 years we would (if we chose to) be able to start rebuilding our credit totally, including getting a mortgage, I had no idea this register existed and know nothing about it. Can anybody help?
things . . . can only get better |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 21 July 2009 : 14:32:30
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I am not too sure about the mortgage default register but the bankruptcy will stay on your credit file for 6 years from the date you declare BR. If you try and get credit during this time (including a mortgage) is will be very difficult and you will only be able to get credit from companies that have very high rates of interest.
With a mortgage you will always be asked if you have ever been bankrupt and you will have to say 'yes'. Even if this is 10 years in the future and your credit file is clean. Because of this you will probably be required to have a slightly higher deposit that normal but could still get a reasonable rate for a mortgage in the future.
A lot of people think that by declaring BR they will never be able to buy their own house however that is not the case. Once BR has come off the the credit file and you have a semi-decent deposit you will find mortgage companies will lend to you. Don't forget we are talking about 6 years in the future and no-one can say what the housing market will be like then. |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 21 July 2009 : 15:13:52
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I strongly believe that you need to do what is right for you and your family for now and in the forseable future.
In reality mortgages will be different in the future and are likely to need a reasonable deposit to avoid the Northen Rock problem. I suspect that anyone with any shadow of adverse history will need around 30% deposit in the future.
You should probably also work out if in reality you can repay a mortgage fully over 25 years.
Again take time to consider and understand the whole position.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 29 July 2009 : 20:10:50
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Thank you Paul. We have taken and considred your good advice and now have our agreed plan. We have finitely examined every aspect of our financial options and I can confirm BR is the preferred (and only) method by which we are agreed which can start to put our life back on track.
We invested in a book ('Book Of Bankruptcy') which is excellent, and together with this site has demistified the process.
We still have some doubts about whether my husbands Armed Forces Pension income which he receives can be excluded. This has caused us to prepare two sets of accounts: one including the pension receipts and one without. If there is any advice regarding this matter out there we would really appreciate it. The WRPA 1999 suggests the pension reeipts will be excluded.
We are now doing some preparation and gathering together all bank and other statments and filing them in binders to make the OR's job easier. How far back do we need to go? Will a years worth be enough or should we not do this as the OR will contact all creditors and get the account information he needs?
We have cancelled all but essential (utilities, council tax etc)Direct Debits and have prepared what we are calling 'Letter 1' to all creditors. This letter explains we are in financial difficulty, requests an up-to-date statement and requests the account to be placed in abeyance - if anyone wants a copy of the template I will post it here.
The plan is to stay in our current property as long as we possibly can (hopefully a minimum of three months) to allow us to accumilate enough savings in order to afford a reasonable deposit on a rental and pay for the move and BR. Target date to file for BR is either 1st October or 1st November depending on how long we can hold things off.
things . . . can only get better |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 01 August 2009 : 20:00:44
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Found this link to the insolvency agency Technical Manual. Great for indepth explaination of the process and practical guidance on what to claim for in the SOA. Although, I would say what might be allowed under household expediture has not been updated since 2008! And what is apparently allowed for water is woefully inadequate if you live in the South West Water Region (hopefully the OR will allow for this)
http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/
things . . . can only get better |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 01 August 2009 : 21:10:00
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Hi
couple of things
assuming that hubby isn't eligible for a lump sum payment then the pension will be safe, however the income will be included in any calculations for an IPA.
"Book of Bankruptcy" ???? if this wasn't published in the last 12 weeks it is probably out of date.
I would recommend you use either the helpline or one of the experts to have a considered telephone chat to make sure that you are on track.
Definately encouraged to hear that you are not going to rush and are planning your position carefully
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 02 August 2009 : 18:22:32
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Hi Paul,
Thanks for your comments. I can confirm husband is not due a lump sum payment and receives a taxable income from the pension.
'Book of Bankruptcy' by Robin Meynell publshed Jan 2009, is a simple guide to bankruptcy - nothing more.
Yes, agree expert advice is essential as we progress. We are seriously contemplating engaging a specialist to handle both our BRs, especially as I feel we will need help to ensure any IPA is for the absolute minimum. The insolvency Service Technical Manual seems to give some clear and straight forward guidance as to what alowances may be allowed on the SOA and therefore be reflected in any IPA. The spreadsheet we are currently producing reflects the same, but I have a felling that an expert will know the 'loop holes'.
We have held back so far as there is expert advice on this site that suggests DIY BR can easily be achieved without the need to spend £500 (both BRs)on engaging someone on what we might be able to do ourselves.
The problem is who to go with? If any forum members have recomendations we would welcome their comments.
In terms of presenting information to the OR, can you advise on how far back we should go with bank statements etc? Will twelve months suffice?
...and you were right Paul - taking these first steps has relieved a massive ammount of distress and we are actually starting to feel quite good about ourselves again. As my husband says - bring it on!
things . . . can only get better |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 02 August 2009 : 18:34:26
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Hi,
If you are going to use a firn, why not give Paul's firm Reviva a call? An initial chat will be free.
He does come highly recommended and is a very nice man.
The glimmer gets brighter all the time
Jan
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 11 August 2009 : 18:59:39
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Please find below template 'Letter 1' I used recently:
Dear Sir / Madam ,
Re ACCOUNT NUMBER: xxxx xxxx xxxx xxxx
I am writing to you regarding the above agreement as I am currently experiencing financial difficulties. I can now not afford the agreed monthly payment because I simply do not have enough money to live on.
I would be grateful if you would provide me with the current balance of the account and a breakdown of how this has been calculated including repayments I have made to date. This will enable me to establish my position with a view to producing constructive proposals for repayment of the amount owed. Please include the date when the debt was incurred in your reply.
I am in the process of compiling a personal budget sheet illustrating my current financial position and, once I have received the requested information from each of my creditors, I will provide you with a copy and my proposals calculated on an equitable basis from available income.
I would request that you refrain from taking or pursuing any action or set procedures until I have had the opportunity to fully assess my circumstances and liabilities. I would also ask that you put the account into abeyance and forego any interest or other charges which would otherwise increase my indebtedness.
I further request that all communication regarding this matter be by letter only
A reply by 28th August 2009 would be greatly appreciated and will facilitate early resolution
Thank you for your assistance in this matter.
Yours sincerely,
things . . . can only get better |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 11 August 2009 : 19:07:03
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Since sending 'letter 1' and having already changed my home number we have been hastle free at home.
However, three of my husbands creditors are phoning his mobile several times a day. Barclaycard even phoned his office, which prompted the following letter:
Reference: BARCLAYCARD xxxx xxxx xxxx xxxx - COMPLAINT
Dear Sir,
I am writing further to my letter of 01/08/2009, where I formally requested all communication to me in respect of the above account be made in writing.
I reiterate, for future court use I require all communication with me to be in writing. The only method of communication in this matter is by letter. Do not telephone me again – remove any telephone numbers you hold for me from your systems.
I am aware of Debt Collection Guidelines and believe you are in breach of these as well as possibly in breach of section 40 of the Administration of Justice Act 1970. If the situation does not improve actions through the courts will be initiated without further communication.
The administration of Justice Act 1970 S.40 makes it a Criminal Offence for a creditor or a creditor’s agent to make demands, which are aimed at causing alarm, distress or humiliation.
You should be aware that the above Act also allows a borrower to issue civil proceedings, through the Courts and if the claimant is successful then damages may be awarded for any financial loss and anxiety caused by the harassment. If your current actions are not stayed forthwith proceedings will be enacted.
Take further notice that continued telephone calls after receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003. Continued phone calls to my place of work constitute an offence under the Data Protection Act.
Yours sincerely,
things . . . can only get better |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 12 August 2009 : 08:08:37
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Dear Samanthadam
I think from your posts you are completely switched on and require no expert to complete your bankruptcies, you seem more than capable of doing this yourself, no expert can give you more allowances in I & E than what is allowed. Use the money saved to treat yourselves before you go bankrupt. |
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samanthadm
Starting Member
United Kingdom
27 Posts |
Posted - 12 August 2009 : 19:03:28
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Hi Daniel,
Thank you for the kind words. However, there will be a limit to what we can do and I would endorse engaging a professional - if only to check what we are doing is correct. For example, and pitch in if you have the answer to this one:-
On going BR we will use our current address and return the keys to our home loan lender ON THE SAME DAY. On our SOA we will declare what our outgoings at this address (mortgage, etc etc). THE DAY AFTER we declare BR we move (hopefully!) into our rented house and our outgoings reduce. What will the OR take into account - our financial situation at the moment of going BR or any subsequent improvements to our financial position? The SOA cannot be a prediction.
things . . . can only get better |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 August 2009 : 20:20:19
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While I can't answer your question there will be other people on here who can. I agree with Daniel that you don't need to pay for advice 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/
25 IPA payments made, 11 to go - on the home straight! |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 12 August 2009 : 22:28:59
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Hi Firstly you have to put the address you are living on the day of the bankruptcy on the SOA and Debtors petition but tell the OR your new address when he calls you either on the day or shortly after your petition is granted. Your outgoings will be the new outgoings in your new situation, so you dont include old mortgage payments or any of the debt payments so you should put your new rent in income and expenditure the OR will usually go over this with you at the interview stage about two to three weeks later, of course as its a new property you can only at this stage estimate running costs.
There are many areas on this site which give you access to allowances you can claim for,
Use the bankruptcy assistance fee to take the kids and yourselves away for a break I am sure this has been hard for you all.
Hope this helps
regards
Daniel |
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Hallo. we need to declare bankruptcy
