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ratbag
Starting Member
United Kingdom
11 Posts |
 Posted - 06 October 2009 : 21:46:46
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| My wife and I have just lost a very expensive court case and have been lumbered with £40k of costs, we have tried to battle over the last 6 months but with all the other debt, credit cards etc I have had to say 'stop' as we are sinking fash and are juggling funds left right and centre to make ends meet and this is even before we have agreed to pay the £40k, in fact we cant, it has cost us £15k to correct an extension (which we have paid twice for after having the builders from hell!!) that the court case was over and we had to borrow this straight after the court case as it frightened us to death at the thought of what would happen if we didnt do what the court had ordered. I am on medication for depression and havent been able to deal with this for a long time and have spoken briefly to an IP who advised bankruptcy. As this has only just been told to us and we didnt even consider this before as we thought bankruptcy would mean losing our home and we have 2 very young childern. What can we expect, a good grilling from the Judge and OR as we have only just stopped using our cards thinking everything is going to be ok when it really isnt. We are really nervous wrecks about the whole thing, can anyone put our minds at rest, even just a little. |
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frosie90
Junior Member
285 Posts |
Posted - 06 October 2009 : 22:10:12
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Hi ya! Welcome to the forum. You will find loads of experts and people like me who have gone through it. You are not alone. This site will give you so much advice, post anything, any niggles you have, fears etc. Sounds like BR is best for you and it honestly won't be as bad as you think. Will be a huge step but one that will probably map out rest of your life for the better. Just be honest with everything. Post as you go through the process and we will all try and help. Best of luck.
Rosie
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Dave Perkins
Starting Member
United Kingdom
7 Posts |
Posted - 06 October 2009 : 22:47:27
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Hi there,
You sound like you and your wife have been through the mill. Whilst a drastic option for many people, bankruptcy is often the best option in certain circumstances. If your house is in negative equity, there is little chance you would lose your home - although be aware that the OR will monitor your property for up to three years after the day you are made bankrupt. Bankruptcy affords you the chance to wipe the slate clean and protects you from further prosecution by people chasing you for money.
Hope it all works out for you both.
Don't let debt overwhelm you. Be brave and take control - you only have one life. |
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kazy1
Junior Member
United Kingdom
120 Posts |
Posted - 07 October 2009 : 10:03:14
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Hi Ratbag
Try not to worry making the dicision to br is a big one but one that i'm glad i made for all my family.
unfortunatly i did loose the house but only through repo
but have found a house to rent.
You don't get a grilling from the judge you may not even get to see them!!
Most people on here have postive stories of the OR's
mine was very nice ex red cap in the army!!
court staff are very friendly and helpful
I have 6 children for my sins and apart from the move they have been ok infact i think its better now that they don't see us upset and sad all the time as br lifted a wieght off our shoulders.
Good luck I'm sure everything will be ok xx |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 07 October 2009 : 16:51:42
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You won't be grilled by a judge so don't worry about this. In most courts you won't even need to see a judge and if you do they will only ask whether you are sure BR is the right option and whether you understand the ramifications i.e. BR restrictions.
The OR also won't be judgemental. They are only there to find out how you got into this situation and your financial background. As this issue is caused by a lost court case using the credit card recently will not be a problem.
If your house has equity then the OR would want to release this to pay your creditors but if there isn't any equity then you can keep the property for £1 + £211 fees although you would need to keep up with the mortgage repayments. |
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ratbag
Starting Member
United Kingdom
11 Posts |
Posted - 11 October 2009 : 21:13:43
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| Thanks for all your help, it has helped. Having had a few days to look into BR can anyone advise what minimum amount the OR would consider selling a house for? We have about £6k equity. I am disabled and have 2 children under 6 but i do not know if this would make any difference. |
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debtinfo
forum expert
2826 Posts |
Posted - 11 October 2009 : 21:50:33
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normally not for anything under £10K but do remember that they have 3 years to deal with the property and the equity may rise over that time,
It may make a differnce, the property would not be sold in the first 12 months where there ake kids, sometimes that can be extended if the property has been extensively modified for a disability |
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ratbag
Starting Member
United Kingdom
11 Posts |
Posted - 15 October 2009 : 21:54:37
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| Thanks Debtinfo, we have arranged a valuation just to be sure and for peace of mind. I have a car on motability, is this safe? as i need it to get around and to work. My wife has a car on HP which she needs for work as is stipulateed in her contract with her employers. More things come to light when you actually sit down and go through things. Going to fill out forms this week. Very nervous about the whole thing, dont think it is the court or the judge but the OR! just got these visions of us getting the worst OR in the world, having nightmares about it. |
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debtinfo
forum expert
2826 Posts |
Posted - 15 October 2009 : 22:20:30
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Hi if the car is on the motability contract hire/lease deal then it will be safe (the OR pretty much has an agreement with motability where they send a letter saying that they are not interested in it).
For any car on motability the first thing that gets looked at is if there is any equity in it (ie is the car worth more than the amount owed on it)
If it does not (as most dont) the OR will say that they have no interest in it. THis means that it is between you and the lender. Some lenders let you continue as long as they get their money, some have a strict no bankrupts clause and will take the car back.
If it does have equity then it will come down to how much and if the car is essential (the OR's technical manual makes it very clear that a caw will not be exempt if it is merely a convenience and not essential)
Hope that helps, there are many if's and but's and it can depend on the facts of the individual case. |
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hadenuff
Starting Member
43 Posts |
Posted - 16 October 2009 : 15:06:53
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Dave, did you mean the OR can as oppose to will monitor you property for 3 yrs after BR? This would not be the case if the BI was sorted out within a reasonable time after BR. The BI in my property was sorted during my BR and as far as I was aware that was the end of it and the OR had no further interest in my property, let alone monitoring it for a further 2 or 3 years.quote:
Originally posted by Dave Perkins
Hi there,
You sound like you and your wife have been through the mill. Whilst a drastic option for many people, bankruptcy is often the best option in certain circumstances. If your house is in negative equity, there is little chance you would lose your home - although be aware that the OR will monitor your property for up to three years after the day you are made bankrupt. Bankruptcy affords you the chance to wipe the slate clean and protects you from further prosecution by people chasing you for money.
Hope it all works out for you both.
Don't let debt overwhelm you. Be brave and take control - you only have one life.
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ratbag
Starting Member
United Kingdom
11 Posts |
Posted - 23 October 2009 : 20:11:50
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| Update...We have our BR hearing on 4th Nov and are busy filling out the forms, the forum is great for help with this. Still worried about the actual day but reading through the forums helps ease the nerves. Fingers crossed and i will update on the 4th. |
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ratbag
Starting Member
United Kingdom
11 Posts |
Posted - 04 November 2009 : 18:40:08
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| All done! 2 hours felt more like 2 days but glad that part is over....now for the wait for the call from the OR. It was not as bad as we thought, they was all very helpful and the judge was great, no interigation etc, in and out in a few minutes. Dont know how i feel at the moment as still nervous about the OR but guess this will ease once have spoken to them. Heres to the new bright future, thanks to everyone who has posted, keep it up. Will post outcome of the conv with OR. |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 04 November 2009 : 19:03:13
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hi ratbag,
I am sure the OR will be fine too - whilst the OR will be looking out for the interests of your creditors, thay are fair minded (generally speaking).
Ask any expert - we are seeing more BRs than ever in history - it is something that you should not feel guilty about - your story sounds horrendous. Like many of us, you were Ok one minute and then messud up the next - life is a bitch sometimes - I had never in my worst thoughts ever contemplated BR - I had thought the world was my oyster... Then I faced the reality - like so many of us we had borrowed far to much - if the recession had not hit so hard, many of us would have survived without BR - however... we are where we are and I wish you and yours well.
Many of us are suffering with depression - I pop a number of happy pills and am seeing a consultant psychiatrist. (my wife always said I was mad!!) (joke!).
I am very lucky, my GP and I are friends - we are a similar age and were at university around the same time - his father was BR and he tells me (as a friend and as my GP) that things will get better - he has not got a majical cure - time will assist with healing the mind and all matters financial - believe in the future!
I see you are married and have children - support each other - I see your children are young - mineare all adult (4 girls!!) We are on the grandchildren now - 2 and another due next month.
If you are looking at losing your home - speak to your lender - they may be able to assist - some do - and the Government has said to lenders that repossession should be a last resort.
If it is likely that you will lose your home, approach the local council - they have a legal duty to assist you with advice and, subject to your situation, may offer you housing.
I have 29 years in the world of estate agency, lettings and as a Director of Housing for a local authority - so have seen it all - all the cases that could have been rescued - but for people not asking the questions!
I do not want to know your business - I am however, very happy to assist with suggestions on cyber - therefore, come back to the site with more info and I am sure there will be advice available for you to consider.
This site is fantastic - I discovered it by accident in July - I went BR in May - the experts are great and there is a wide range of BR experts too - we all have knowledge and will assist each other.
I actually wish we could all meet up as we all look out for each other!
I wish you and your family well and do NOT stress any more - it is NOT worth it!! My regards, Richard
"There are no problems - only solutions..." |
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ratbag
Starting Member
United Kingdom
11 Posts |
Posted - 05 November 2009 : 21:58:13
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Thanks Richard,
The site is a fountain of knowledge and sound advice. I think its just my nature to worry. A bit more about our situation is that I lost a leg last year which was horrendous not only for me but the family, my wife was 8 months pregnant with our daughter when i was taken ill, she was on maternity leave and i was wheelchair bound for months, i went back to work too early and nearly ended up having a breakdown. I eventually reduced my hours which had a knock on effect to my salary but the bills were still the same and was having such a hard time coping spending carried on til i finally said stop. it was one thing after another, leaking roof, rotting windows, i couldnt have my children living in that, but i couldnt do the work myself so i had to get the money to pay someone to do it, i felt so useless, however i have a wife that is a rock and does everything for all of us, if it wasnt for her i would have definitely gone under.
This is our family home and would be gutted if we lost it but at the moment its in neg equity so touch wood its safe. |
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frosie90
Junior Member
285 Posts |
Posted - 05 November 2009 : 22:48:30
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Congratulations on getting the court part done, Ratbag. I am sure the OR call will be absolutely fine. Good luck with it all. Will look out for your outcome. All the best.
Rosie
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 05 November 2009 : 23:22:58
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Steve,
I am so sorry that you have had so much go wrong - it makes me feel humble when I read postings like yours - even though it seems that my world and my families world has collapsed, it seems so insignificant to what you have gone through.
I really wish you well and hope that you keep your house - I look at this forum every day - if I am able to assist with suggestions, I will gladly do so
Take care of yourself and your family dear friend - thoughts are with you, Richard
"There are no problems - only solutions..." |
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Scared to death
