I am seriously trying to weigh up whether to go bankrupt and need help

[tastyjane]

Re: I am seriously trying to weigh up whether to go bankrupt and need help

No my employment wouldn't be at risk - I have today discussed the whole issue with the financial manager - her advice was just let them make you bankrupt - she knows how worried I've been about the whole thing for the last couple of years.

If I declare I was on the joint account but removed my name would they still take the "slush fund" my husband likes to leave in there? As I say its mostly his money, not a huge amount but our outgoings come to just over £1800 a month and there is usually a £2000 balance?

Jane x

[Spud]

Re: I am seriously trying to weigh up whether to go bankrupt and need help

Hi

Been reading your thred with interest. I am in roughly the same position ( Without the SD) but wondering and concidering what the best move should be. Fight UE or go Bancruptcy.

I am no expert but have been researching this for over a year now. Just a few (Probably too many ) words on my thoughts.

There are pro's and cons to both courses of action ( This is the place to research both) but Bankruptcy is often seen as the last solution. It has many Pro's but some Cons that last with you until the day you die. You have to remember that given time.... Things do get better - You will be in a better position with your life and finances and your plans may change. Bancruptcy with its restrictions may get in the way of those plans in the future.

Consider this situation:

You fight like hell to get the SD set aside - Never just ignore it as a threat. ( Thats IF they follow it through to the end - There are many times they do not)

You then find that the debt is unenforcable ( Through the help of the exellent people on here)

You play (The Game) - Fight your corner and the creditors back off ( You have convinced them that they have little chance of success in court) and given time (6 Years) the Debt becomes statute Barred

Once you reach that time - They cannot pursue you for the debt and to all intents and purposes - It dies a death.

Fantastic....Job done debt finished - Get on with your plans


Regarding your very first post in this thread. You state that you "would only be able to make token payments of £1.00 PCM but they are unlikely to accept that."

Many people ( Including myself) have been making token payments of £1 to various creditors for over a year and even longer in many cases. Yes... They send me many letters that they cannot accept it/ Will take me to court ect but I keep on sending the payment with a letter every month ( Build up a correspondance file) and they accept it... They have to - Imagine what would happed if they refused it! Eventually - most have now wrote back to say that they accept the £1.00 a month and review it 6 monthly.

If you keep sending the payments, Play the game ( As detailed in this site) and can back it up through your statement of affairs then you are doing everything you can.

In the between time you can assess whether there is a U/E route to explore and likely play the game until such times as the debt becomes Stature barred.

In the event that they do decide to take you to court - Which IF they dowould most probably take a few years ( As long as you played the game correctly) whats the worst that could happen?

If it was enforcable and you lost your argument in court ( Not really as daunting as it seems ) Most likely a Judge would grant a CCJ and then can realistically only order you to make payments at a level you can afford ( £ 1-5 per month say). If they dont... You can appeal it.

Yes they could apply for a charging order on your home. (which is not an automatic thing and again can be fought and won) This has to be granted by the judge. Remember a charging order is very different to a forced sale - Which is very unlikely.

All a charging order means is that on the sale of your property ( When you decide to sell it... 10, 20, 30 yrs time) You should theoretically then pay off the creditor as they have a charge or interest in your asset. However, Especially with a joint ownership situation, I believe the process is slightly different and there is actually no legal obligation to pay the creditor upon completion of the sale... Mearly a requirement to inform them you have sold the property.

If eventually you did pick up a CCJ You then have the option of living with the CCJ situation, Life goes on as normal and there is certainly less restrictions/ Downsides and threat to your family home.
Yes, Its still with you, Mabee for some years but life is manageable and you know where you are, The payments are set and you can get on with everyday life.

If you Go Bancrupt now.... You cannot explore the first scenario. But remember you can look at the U/E route - See how its going and if its not right for you.... You can go Bancrupt at any time You decide. You have not lost anything really ( Only a bit of time on your credit history scores)

Just a thought.... Thats the way I see it. Whats right for me may not be for you but its certainly good to keep your options open until you can see what you are playing with. Give you the time to research and take the action you mant at a time you want

Any help I can give - I will... Just ask the question

[tastyjane]

Re: I am seriously trying to weigh up whether to go bankrupt and need help

Spud thank you, I had not heard of the UE route until I was told about this site last Tuesday which was the first time they tried to serve the SD. I wish I had found it before because I would definitely be signing up to it (I have done but this SD has just thrown some doubt into my mind).

Niddy and hopefully Paul are looking at the SD for me and I hope will assess whether I have a chance at setting it aside - although the thought of having to go to court and represent myself scares me silly!

In reality Lowells have forced the bankruptcy issue with me - I have many friends in real life that have gone bankrupt themselves but I would never be able to raise the £750 to do so so I didnt think it was an option for me.

I have lived without using credit of any type since September 2008, what we cant afford we don't have in this house and although this has been so hard (I've got no gold left to sell :-) ) life is much simpler.

I am swaying between sticking my heels in and going for UE on all my debts (I keep getting offers on most of them, I cannot count the amount of "vouchers" I have been sent for half the value of the debt, particularly from the Egg ones) so I think they might know they are on dodgy ground. But if I am going to go bankrupt wouldn't it be sensible to get one of my creditors to pay for it? I really don't have any assets, the house is in negative equity I believe (only by £5K or so but negative all the same), I don't own a car and we just have the normal bits and pieces in the house - no flash televisions etc. They will end up with nothing for their trouble I believe and the debt would be gone in max 3 years......

I do feel under pressure because of the 18 days to set aside and that's why I want to explore all the options and the reality of the situation (as far as anyone can tell) if I waited for them to do their worst.

Just out of interest if I don't apply to set a side how long do they have to petition for bankruptcy? Does the Statutory Demand just sit there open for years on end?
or would it happen relatively quickly?

Sorry for all the questions but as I say I want to be sure of all the facts before I have to make a decision and I feel with as much information as I can gather I feel in a much stronger position.

Jane x

[Spud]

Re: I am seriously trying to weigh up whether to go bankrupt and need help

I can agree with your thinking... The same had occured to me if ever i'm facing a SD - Its certainly appealing given that they are paying for it

I understand what you say about the 3 years bit.... If you get an IPA ( You may not - If you have less than £20 Disposable income) then the payments will last for 3 years - Possibly less due to your yearly review where the costs of things keep rising... Dont they!!!!.... So you may not have any surplus income on years 2 or 3 Will you!!!

Obviously the Br will show on your credit history for 6 years then "roll off" so a casual credit check ( For employment purposes ect) would not show after that date.

However... As I'm sure you are aware - You are obligated to always disclose your Bancruptcy if asked to do so - Even 20 years down the line which could affect your chances of getting another mortgage ect

I guess its all down to where you are with your life, Children grown up or still young and your potential plans for the future. If your children were all grown up and flown the nest - Could'nt forsee the need to get another mortgage in the next 15 - 20 years ( Not impossible but costly!) and your employment would not be affected - Then it could be a viable option.... at their expense

Imagine how dissapointed you would then be if they did'nt follow through with the petition.... Most people would be partying and you would be crying !!!!

Regarding the house.. As I see it - with joint ownership the official Receiver would only be looking at the equity in Your share of the house - 50% ???

And then only if above say £5K - To be worth their while

I believe the Official receiver would always look to sell the equity to your partner/Family/Friend in preferance to a forced sale - Selling a house costs money - Friends dont !!

If no equity now, They would hold it for nearly 3 years - If still no equity ( Above about £5K) then the benefitial interest would transfer back to you.

There are no guarantees but it sounds like your house would be reasonably safe from what you say - You would need to research this fully though.

Worst case scenario - If you did have to sell the house ( Not too likely) you would have to rent a property. I know you would probably not want this - I would'nt after many years hard work on a house But.....

There are worse places to be than renting and being debt free!

I Dont know about the specific stuff ref the SD's - Sorry but like I say - I've done a bit of research on the BR side of things.

Just an opinnion - Not saying its right for you

I hope you get the SD sorted - My thoughts are with you at this difficult time

[Spent2much]

Re: I am seriously trying to weigh up whether to go bankrupt and need help

I have also received an SD, it was over a year ago and I attended court to get it set aside. It was my understanding that they will not necessarily issue bankruptcy proceedings, but I don't know if there is a time limit.

Will your employment be at risk if you are made bankrupt?

my husband had two at the same time and got them set aside also , we considered BR as it seemed the easiest thing to get out the mess,but decided against it, now we are fighting those accounts which were set aside as they are ue