Bankruptcy/Bailiffs - Advice needed!!!!

stevenwhiteley · 6th January 2007, 22:57

Hi all

Basically me and my partner have decided and been advised that our best course of action to our debt issues is bankruptcy.

We have been advised to stop paying everything (Gas, Electric, Phone etc) and with the money we save move out into rented accom as soon as we can and then save up to petition for bankruptcy (both of us).

Our problem is that we could probably afford to move out within about a month but then we will have rent, gas electric etc at our new accomodation to pay making it harder for us to save for bankruptcy.

Our only option (as I see it) to get this all over with as soon as possible is to stop paying everything (as above) but stay in our current house until the end of march to save up for rent/bond and bankruptcy because if we move out asap it could take us 10 months to save up for bankruptcy.

What I was wanting to know is, what can we expect by not paying for 3 months? We have a little girl and are really scared about bailiffs/disconnection etc.

At this moment in time we are one month behind with our mortgage and secured loan though have paid token payments of £50 to each but we plan to stop this. All utils are up to date.

Is there anything we can do to delay things being switched off/baillifs coming or will we be ok for 3 months?

Thanks

st24driver · 6th January 2007, 23:42

Look on the net for the Bankruptcy advisory service based in hull get in touch with them the advice they give is no nonsence and true facts, every case is different but first have a look on their web site
belive me there is life after bankruptcy but first be certain that this is the correct path for your circumstances.

7th January 2007, 11:02

I have seen the first hand results of Bankruptcy and I would echo that advice and get good advice from someone independent that is not going to gain from this, Bankruptcy is not an easy option and should be the very last resort. I hope it is the very last resort. If you need a chat with someone outside the circle about Bankruptcy I'll PM you my number.

stevenwhiteley · 7th January 2007, 11:55

I have spoken to an agent at MyVesta.org.uk and have found their advice very good. Are they a credible source of advise?

bottomburp · 7th January 2007, 12:09

deleted

st24driver · 7th January 2007, 14:12

sound advice from both zooman & bottomburp if there is any equity in the matromonial home this could be used to pay off your creditors providing that you can get a mortgage.
also if you should go down the bankruptcy path and providing you keep your mortgage up to date or anyother secured loans in order for the trustee to raise funds from the equity he has to give you 12 months notice to force a sale of your home if you have children living at home under 16.
This could give you some time to raise the funds to pay off the trustee but most importantly seek some good independant advice and stay away from the ambulance chasers who are just looking to make money from your situation because they see that you are in a vunerable situation.

Belive me I have been there where you are and I know the stress but my situation was different I was a sole trader so mine was buisiness liabilties and mine was back in 1999 and I have only just settled with the trustee to purchase my equity back in my home.
But with the enterprise act in place now there are timescale put in place to bring everything to a conclusion, but dont forget what was right for me and other people might not be for you and seek good advice, I went to see a repatable Licenced Insolvency Practioner you can find them in the yellow pages and they usualy give you a free consultation on your first visit, take stock of their advice they will have seen people in your situation on a regular basis but most important the final decision rest with yourself

stevenwhiteley · 7th January 2007, 19:31

Quote:

Originally Posted by bottomburp

I don't think anyone can really advise you without a bit more information. How much equity is there in the house? How much do you owe on the mortgage and how much do you owe in other debts? How much income do you have?

Getting a rented house once you are bankrupt is extremely difficult - if you go through an agency they will do a credit check on you and will either refuse to take you on or will make you pay several months rent in advance. You may have more success dealing direct with a private landlord but there may not be may of these available in your area (virtually none in mine).

There's a government service The Insolvency Service The Insolvency Service Website. It might be wise to give them a call and discuss your situation with them - there's a telephone number on the site.

I don't know anything about MyVesta so can't help you there but I wonder whether you've thought of entering into an IVA?

Hi

There is negative equity in the house, approx £15000 and we have 39 years left on our mortgage which is approx £95000 outstanding, also we have a secured loan on the property worth £30000 and 14 years left.

We also have £10000 on a debt managment plan.

Our income is 1200pm but by paying everything we are approx £500pm short.

We are currently paying only token payments on our mortgage and secured loan as they think we are selling our house which currently we do have it up for sale but dont think that by selling it will make any difference because we will still have 10000 plus surplus of secured loan from the sale. we would not be able to afford to rent and get an iva either to pay that off.

Any advice?

st24driver · 7th January 2007, 22:24

I think that you need to pm zooman for his phone number and see if he can give you some of his advice, I have read some of his threads and he talks a lot of sense

best of luck mate

gizmo111 · 7th January 2007, 23:03

Definetly take zooman up on his offer. if you are sure that BR is the best route for you then by all means start saing for it. As you are only making token payments to mortgage and secured loan, the nstay where yo uare until it is sold or you are BR as to rent anywhere at present would just be another expense that at present you annot afford. And as someone posted above it may not be as easy as you think to get a home in a month.

stevenwhiteley · 8th January 2007, 17:13

Thanks for the Help everyone.

I have PM'd Zooman so hopefully he can help some more.

stevenwhiteley · 8th January 2007, 19:34

Just another quick question if anyone has the answer.

If I stop paying everyone to save for bankruptcy fees do I tell the companies or not?

Also would it be best to offer £1 token payment or nothing at all?

meggyweggy · 8th January 2007, 19:51

I would imagine if you are about to stop paying for things like utlities and the such like it might be best not to inform them that you are about to declare yourself bankrupt, but i am sure someone with a little more knowledge on this will tell you

st24driver · 8th January 2007, 20:39

Avoid the temptation to spill the beans if you are taking the bankruptcy route because your creditors could have a ccj against you and the bailifs round quicker than you can save the funds because they will all try to get anything out of you if they can.
Also with the increasing number of bankruptcies you may have to wait several weeks for a hearing in front of a district judge depending on how busy your local court is.
And finally a guy who I work with declared himself Bankrupt a few years ago and his mother gave him the money for the fees which he stated in his declaration and she recieved a refund from the court at a later date, Zooman may be able to clarify on this one.

once again best of luck

LondonPam · 8th January 2007, 21:00

There is no point in telling any of your creditors that you plan to go bankrupt. They hear it at times and never believe anyone. The best thing you can do is get the money together to file and stop paying them. If you get benefits of any sort you may be able to get help with one part of the court fee. As previous posters have said, take Zooman up on his advice and make sure you go into this with your eyes open.
I would also recommend taking a look at Debt Help UK : Free debt advice and solutions, with debt consolidation | UK debt consolidation service with free help and advice One of the guys on there is an IP and gives very good advice.
Good luck in whatever you do.

stevenwhiteley · 8th January 2007, 22:35

Quote:

Originally Posted by st24driver

Avoid the temptation to spill the beans if you are taking the bankruptcy route because your creditors could have a ccj against you and the bailifs round quicker than you can save the funds because they will all try to get anything out of you if they can.
Also with the increasing number of bankruptcies you may have to wait several weeks for a hearing in front of a district judge depending on how busy your local court is.
And finally a guy who I work with declared himself Bankrupt a few years ago and his mother gave him the money for the fees which he stated in his declaration and she recieved a refund from the court at a later date, Zooman may be able to clarify on this one.

once again best of luck

I dont suppose you know roughly how long it took to get a refund and how common/certain it is. I have a family member who said they could lend us the money short term, maybe 2 months.

Thanks.

gizmo111 · 8th January 2007, 22:54

Quote:

Originally Posted by stevenwhiteley

I dont suppose you know roughly how long it took to get a refund and how common/certain it is. I have a family member who said they could lend us the money short term, maybe 2 months.

Thanks.

The problem with that would be paying them back as they would be a creditor in your BR. I have heard of peope drawing cash on their credit cards or maxing their OD to gfather together the fee.

stevenwhiteley · 8th January 2007, 23:07

Quote:

Originally Posted by gizmo111

The problem with that would be paying them back as they would be a creditor in your BR. I have heard of peope drawing cash on their credit cards or maxing their OD to gfather together the fee.

St24Driver stated that the person's mum who paid the fees got a refund from the court.

I wish I had an overdraft/Credit Card but I dont and credit history is too bad to be able to get one even if I wanted to unfortunately.

On another note, how does the Official Receiver monitor your finances. For example, if I borrowed £1000 for mine and my partner's bankruptcy fees from a family member and agreed to pay them lets say £30 per month how would the Official Receiver know??

My partner is not working because she is on medication for depression but if our situation improves and she feels she can go back to work would her wage go towards our debt and how long is it before any increase in income/receiving a gift/money in a will is yours and wont be taken by the Official Receiver???

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