Please help - seriously stressing over debts!

[Lou7477]

Hi

 

I've read a few posts on here and found them most informative however I was wondering if someone could look at my situation and help me get my head round it all?

 

I think bankruptcy may well be my only option but any advice would be wonderful.

 

Background - Jan 2008, made redundant with no warning from a job in Mortgage Industry (£31,000 a year but had to pay own tax, worked as employee for 6 years, then changed firm to LLP so was made to be SE for another 1.5 years before leaving) Took the firm to small claims court as didn't pay me a penny from the date I had to leave. Judge ruled I was employed as had start times, set hols, lunch and paid sick etc. Awarded me the notice pay only, got £4k.

 

Mortgage was £1300 a month so sold my BMW, borrowed some off mum, used my savings that I was supposed to pay tax with to keep the mortgage going but by the time July came, it dawned on my and my husband that we'd done it all in vain. We couldn't keep the repayments up on this and everything else. I couldn't find job of same £'s locally (have 2 small children I need to be at home for) so March 08, I took a £15k a year admin job to tide us over, I still had to pay nursery fees so we had no chance of keeping that mortgage up.

 

In August 2008, we handed our house back to Northern Rock. We bought it in 2007 for £239,000 they sold it Dec 08 for £163k. We owe the difference but they've not been in touch since the sale (maybe they've forgotten me )

 

We had a secured loan, 2 credit cards, 4 catalogues, a flexi loan, an overdraft (all manageable before) and of course I had to submit tax returns. Needless to say, I am frightened of owing the IR so didn't submit the returns (naughty I know but I'm scared as can not pay them anything like what I owe)

 

We kept the council tax up to date, and owe money to the water, gas and electricity companies that serve our rented house. I've cleared our old electricity debt and am currently paying a small amount weekly to clear the old gas debt.

 

So far, Lowell's have been the only one to contact me regarding a catalogue debt (now significantly more than I remember), sent a CCA and they can't produce anything so they've gone away for now. Others are trying to find me, SQN and Apex are pretending they've got some personal news for me.

 

I've burried my head for too long now, I want to face things and get it all sorted but it's this IR situation that's bothering me. I have half done the tax returns outstanding. I am going to submit them with a letter and try to explain my reasons and hope they understand. They may well make me bankrupt and tbh it wouldn't bother me that much anymore, I've had enough of this situation.

 

I've never owed before in my life like this, our debts must clear £200k which is awful. I have tried and tried to get another job but it's not happening, in fact my mum has paid for me to do a college course to re-train so that i might be able to change jobs and get some decent wages coming in.

 

I guess the first step is the IR and their tax returns! I should have tackled this months ago but have been so scared and depressed i just couldn't face up to it!

 

Anyway, if anyone has any advice or tips or even just to tell me off for being so stupid, I would be grateful.

Thank you for reading my waffle

Lou

[homespun]

hi.

if you feel bankruptcy is the only option open to you have a word with these guys.

i filed today have my hearing thusrday.

these people are very good and if you are working for yourself they will give you the number of the business debt helpline who are as just as helpfull.

 

National Debtline – Free, Confidential Debt Advice – Call 0808 808 4000

[Louise40]

Hi Lou

 

You are not stupid and you are not waffling.

 

I am the same when it comes to the Inland Revenue, but take it step by step and you will get there.

 

I would look into all your options, have a good read through the posts on this site they are so helpful.

 

If I can be of any help PM me.

 

L xx

[Fiscalawareness]

Hi Lou

 

I know this sounds a bit odd but your are i guess already defualted and CCG form your debts so your have a bad credit rating for 6 years anyway,

 

if your income does not allow you any money to pay your debts after basic living costs or even leave you in a negative, then going bankrupt is the main option.

 

if you can afford more than £200 a month after you basic living expenses then you could do an IVA.

 

However if your debt is as much as as you say and you have already lost the house then Bankrupt is the way to go, it will take into account all your debts including northern rock but will not take into account IR.

 

The IR will however allow a payemnt scheme that will be prioritised over any payments to lenders.

 

if you want any specific advise let me know cheers james

[debtinfo]

Hi i hate to disagree with a fellow poster but the IR debt will be included in the bankruptcy, what makes you think that it wouldn't

[gizmo111]

However if your debt is as much as as you say and you have already lost the house then Bankrupt is the way to go, it will take into account all your debts including northern rock but will not take into account IR.

 

The IR will however allow a payemnt scheme that will be prioritised over any payments to lenders.

 

Any debt will be included in the BR -exceptions are CSA, certain court fines and student loans (not bank related, cards and overdrafts etc but actual student loans from govt).

 

Not sure where your statement is coming from about the IR.

 

 

if you want any specific advise let me know cheers james

 

Please post any questions on your thread and they will be answered so all can see and advise further.

[joemay]

Hi,

 

Yes the IR would be included in bankrupcy, but if your not looking to go that route, the IR do have a repayment scheme - especially during these times (apparently).

 

Bear in mind also that it will cost any creditor around £1,500 to make you bankrupt, so they won't necessarily be in any hurry to do so.

 

Have you looked through Debt Collection Industry - The Consumer Forums you will get some great advise about your debts and whether your agreements are enforceable. Knowledge is all empowering.

 

If you feel that there is no way out or dealing with the debt and bankruptcy is your only anwer, then do seek advise before doing so.

 

All the best

[benoit908]

If you're up the creek so to speak, Bankruptcy is the only way. My wife had business debts, credit cards the works. We did voluntary repossession on our house and she filed for personal bankruptcy as all business stuff was in her name.

IR and EVERYTHING was in it. You get discharged after a year now. You won't be able to get credit for about 6 years after discharge though so you are looking at 7 years from date of bankruptcy before you can consider a mortgage etc. Some do 3 but you'll pay well over the odds.