To be or not to be Bankrupt.....our situation?

[MrsH80]

Hello All,

 

I have used this web site many a times but I was not ready to deal or face my problems hence not registering before however the work you guys do to help others keeping people positive, motivated, not feeling isolated and on track against the big bad world of debt is amazing, keep up the good work to all involved

 

Well here goes ...... My husband and I started having severe debt problems after a change in job amidst relocating back to Edinburgh from Kent. At the same time we lost all the equity in our house which was subsequently repossessed in October 2009.

 

All our financial problems started around March 2008 where we started paying nothing or reduced payments to every company we owed money too.

 

After spending years of moving around since our repossession with our two children, over two years of homelessness and serious consequences to my husbands health and our relationship we need to sort this mess that still haunts us before this ruins the future of our family, we don't where to turn.

 

We always knew deep down Sequestration was our only option not only because of the total owned but after my husband health started suffering too and continues to do it really left any repayment options unavailable to us.

 

So now we have the money needed to pursue our bankruptcy at long last however I wondered if we could have some personal opinions in what you what do in our situation. We are currently in receipt of benefits and have advise that we could take the LILA route for Sequestration.

 

This is a list of everything I have noted from letters I have received however we ordered our credit reports last night for the first time since we had any late payments and now I can't make sense of who owns what and what areas we need to address also on a positive note the amounts I have listed are slightly less mainly being Northern Rock which is actually half that what their correspondence said at one point or I would not have noted this Due to all the moving about we have only just found out that my husband has two CCJ's these are highlighted below too:

 

My Name

 

Intrum Justitia or Lowell (not 100% was originally Barclaycard) £7,750

Halifax Credit Card £676

British Telecom £110

British Gas £1,200

Mint £2,110

Southern Water £66

Cabot Financial - Next Directory £760

Sheila Wheels £75

 

Husband

Northern Rock Plc - House £72,000

Barclaycard - debt sold on? £6,500

Halifax Credit Card £4,000

Blackhorse Personal Finance (HIP) £250

Scottish Gas £355

Sky £101

Joint

Alliance and Leicester - Current A/C £2,000

Halifax - Current A/C 1 £650

Halifax - Current A/C 2 £135

Halifax/HBOS Loan £1,300

Kent Council £233

West Lothian Council £710

Clydesdale Current Acc £200

Edinburgh District Council £202

HomeLet £500

Eon £1,400

 

Maybe having to long to "stew" in this whole situation and where it has led it us too coupled with all the other personal effect perhaps I am bitter. However all I do know is that preferably I don't want to pursue us going bankrupt and the time to recover from this when the debts with the largest capital against them are pretty old and they all relate to the house which was repossessed.

 

I am more than happy to shed more light on the situation and give more details to allow anyone who can help to do so. I tend to ramble and go off point so I tried to keep this factual however I have probably missed so many relevant factors and explanations, hopefully this will be enough to get started

 

Thanks in advance,

Mrs H

[PRBrown]

I can't offer you any direct advice about the best solution, but I'm glad you've now taken the first steps in attempting to put a line under it. If it's affecting your husbands health then that must be the first consideration, and in those circumstances sometimes you need to make a decision about what will sort things out the quickest rather than what would be your ideal preference. I'm sure other's will be along to give you better advice or else point you in the direction where you can find it. I wish you all the best, and good health in the future.

[Crocdoc]

I would suggest that you seek advice from one of the free agencies in Edinburgh, should LILA be the best option they will be happy to help with the application.

CAB have offices in Dundas St, Great Junction St Leith, Potobello, and there is also the Council Run Money Shop on South Bridge. The only real problem I see in your circumstances is that it will almost certainly be necessary to Sequestrate both you and your husband as I assume that the mortgage related debts are in joint names , this being the case the cost would be £400.00.

 

I hope this information is of assistance

 

Good Luck

[blueda]

It might be worth looking at whether you were mis-sold PPI on some of these cards, if so and claimed back you may be able to make reduced offers to the creditors as full and final settlement there are letter templates on this site that you can look at, here is the link

http://www.consumeractiongroup.co.uk/forum/showthread.php?20758-creditorsandDCAs-leterTemplates&Budgetplanner

You have made the right decision by joining this site and you will get support and advice on getting your life and health back in order. How old are these debts and when did you last pay them ?

[drop47]

With respect, some ppi reclaim will not really make a dent. I assume its the same in Scotland but you would both need to go into formal debt arrangements. Your debts are lower so maybe a DRO is good for you. I would get some proper advice

[Bandit127]

If I read that right you have a shortfall of £72k on the house?

 

Added to everything else, I am guessing £100k+ And you are basically on benefits.

 

Is your debt part of the reason for your husband's illness? Not surprised if so. If I read it right, you have no hope of paying this off as it stands.

 

I looked bankruptcy in the eye when my shortfall of £50k came in - a total of £80k was owed including non secured debt. I saw that BR was a huge step and the consequences remain with you forever.

 

I stepped away as I (currently) have an income that allows me to pay and will see the lot off before I retire in 15 years. (But not long before).

 

Should I loose my current job I will be in court before a judge being made voluntarily bankrupt before I go to the job centre.

 

I don't know about Scottish law but a judge in England has to establish that you have had professional advice to go bankrupt before he/she can enter judgment.

 

I strongly advise that you get some proper advice from a debt charity before you go much further.

[Crocdoc]

With respect, some ppi reclaim will not really make a dent. I assume its the same in Scotland but you would both need to go into formal debt arrangements. Your debts are lower so maybe a DRO is good for you. I would get some proper advice

 

We don't have DRO in Scotland, LILA is the nearest equivalent although not entirely the same.

 

Based on the amount of debt and the lack of income, I take the view that it is the only option in this unfortunate situation.