Think I need to go BR!

[fiscalfool]

Hi All,

As some of you know, I've been doing UE with Niddy for some time now.

The UE side of things is going really well. However I have two other pressing assets:
1) Personal Loan for a car, that is getting rapidly behind on.
2) A house which I rent out, at a loss.

The letting agent have just advised me that my tenant is moving out, and that means I'll be stuck with a month or so with no tenant. Then I'm likely to be renting it at a loss again.

The house is not at a stage where I would be able to sell it. Mortgage is about £118k, about 3 years ago it was work £120k and now probably worth less. On top of which I'd have to fork out solicitors fees. I'd make a huge loss selling it.

On top of which, the Personal Loan for the car, has got to the stage where they have called in everything owing, not just the arrears.

I've tried to sell the car to get a cash buffer and then jump into the company car scheme ... but I owe about £15k, and the last price offered was £6.5k.

The UE I can handle, but the stress of the house and car is mounting ... I think if I managed to get rid of it all, it might be a breath of fresh air.

Currently with UE, and not paying the car I'm left with a very little cash at the end of the month. I guess I'm worried that BR would require me to make a guaranteed payment, that would leave me with even less.

[Never-In-Doubt]

Re: Think I need to go BR!

Do you think a fresh start is needed? If so all I'll say is best of luck.

Not my forte so I'll leave you in the capable hands of the BR guys.

[fiscalfool]

Re: Think I need to go BR!

I just think I need to get rid of the house in whatever way is best. Any ideas???

I guess if I call NRAM and say "Here, it's yours, have the keys". They will sell it and come after me for the difference.

The car I would have been happy to keep batting off, but House+Car ... I'm just starting to think of the bigger picture.

[Never-In-Doubt]

Re: Think I need to go BR!

You could be right - obviously cessation of mortgage payments would mean they'd repo - it's really upto you what you do but am sure the guys here will be able to help

BR isn't as bad as it used to be, thank goodness!

[fiscalfool]

Re: Think I need to go BR!

I'd love to stay doing UE, but if I'm going to need to go BR for the house and car ... then I might as well go all in with everything.

[Never-In-Doubt]

Re: Think I need to go BR!

Oh totally agree mate. Clean slate and all that.

Probably not a bad idea for you; others that have done this will be able to help; plus the likes of phil, rizzle, if & confused.

[IF]

Re: Think I need to go BR!

Hi FF, We will help you all we can first we always recommend you call one or two of the following Debt charities because:-

The court/judge will normally ask whether you have taken professional advice that bankruptcy is in your best interest. If they believe you have not taken proper or sufficient advice then your bankruptcy may be refused. Below are the most used Debt charities by people on this board.



Main recommended sources of help:

• Consumer Credit Counselling Service - Website: Click Here CCCS Telephone: 0800 138 1111
• National Debtline - Website: Click Here National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Click Here or visit your local CAB centre.
  To find nearest CAB centre to you - Click Here

Others:

• Business Debtline - Website: Click Here Business Debtline Telephone: 0800 197 6026
• Christians Against Poverty - Website: Click Here
• PayPlan - Website: Click Here

I didn't have a house or car so hopefully Phil and Rizzle can advice further. Please read this thread too.


Deed of Acknowledgement: reposession after bankruptcy - Click Here

[Riz]

Re: Think I need to go BR!

How much is left to pay on the car?

That is the most immediate thing that would be chased.

Give up the house and any arrears just get swallowed back into the total amount owing, which they then cannot pursue until the house is sold and any shortfall becomes concrete.

In other words, if the car debt isn't that bad, or you can put up with it being chased, then you can probably just sit and see how everything else goes. If it gets too much, then you can always go BR at any point.

Or of course, you may just want a definite end to it now.

The only slightly concerning thing I've seen lately is that some lenders seem to be holding on to properties and even renting them out themselves to pay off shortfalls, rather than selling them so that a shortfall is created that goes into your bankruptcy. In which case, holding off on the BR until NR sell might be an idea. If you go BR before, they might decide that the won't sell it for a bit, as that is a guaranteed loss for them.

Not that I've seen the above ^^^^ a lot, but perhaps something to just be aware off.

[fiscalfool]

Re: Think I need to go BR!

Oh joy ,.... I've spoken to CCCS and Payplan before ... I ended up in a DMP with PayPlan. I can see either CCCS or PayPlan suggesting an IVA!

Quick question, the day I have to go to court. Is it in court or judges chambers?

[Riz]

Re: Think I need to go BR!

Quick question, the day I have to go to court. Is it in court or judges chambers?

Chambers. An office basically.

Or often not even that. I just sat in the waiting area, and then the clerk came though and said "all done. the judge didn't need to see you".

[fiscalfool]

Re: Think I need to go BR!

How much is left to pay on the car?

That is the most immediate thing that would be chased.

Give up the house and any arrears just get swallowed back into the total amount owing, which they then cannot pursue until the house is sold and any shortfall becomes concrete.

In other words, if the car debt isn't that bad, or you can put up with it being chased, then you can probably just sit and see how everything else goes. If it gets too much, then you can always go BR at any point.

Or of course, you may just want a definite end to it now.

The only slightly concerning thing I've seen lately is that some lenders seem to be holding on to properties and even renting them out themselves to pay off shortfalls, rather than selling them so that a shortfall is created that goes into your bankruptcy. In which case, holding off on the BR until NR sell might be an idea. If you go BR before, they might decide that the won't sell it for a bit, as that is a guaranteed loss for them.

Not that I've seen the above ^^^^ a lot, but perhaps something to just be aware off.

£15k left on the car, worth £6k approx.

So, Rizzle are you suggesting I stop paying for the house and hand the keys back. But just hold off on BR until the last moment, when they threaten me with court?

[IF]

Re: Think I need to go BR!

Oh joy ,.... I've spoken to CCCS and Payplan before ... I ended up in a DMP with PayPlan. I can see either CCCS or PayPlan suggesting an IVA!

Quick question, the day I have to go to court. Is it in court or judges chambers?

Try National Debtline......they seem to more impartial!!

Its just you and the Judge either in a court or chambers......sometimes you don't even have to see him/her at all as the clerk of the court may just get him/her to sign your Bankruptcy Order.

[fiscalfool]

Re: Think I need to go BR!

Chambers. An office basically.

Or often not even that. I just sat in the waiting area, and then the clerk came though and said "all done. the judge didn't need to see you".

Ah no problem, and thanks for the replies.

I've been to court with my tenant, so it's not quite as daunting. But that was just in chambers and quite a friendly affair.

I wouldn't enjoy being in open court though

[fiscalfool]

Re: Think I need to go BR!

Try National Debtline......they seem to more impartial!!

Its just you and the Judge either in a court or chambers......sometimes you don't even have to see him/her at all as the clerk of the court may just get him/her to sign your Bankruptcy Order.

Brilliant. I'll take a look at my SoA to ensure that it doesn't look like I've got too much spare. I wonder if they know what UE is when I explain to them that's what I've been doing since I stopped with PayPlan!

Chambers will be fine. Judges aren't the monsters that most of us think they are. They are usually polite and fair.

[Riz]

Re: Think I need to go BR!

£15k left on the car, worth £6k approx.

So, Rizzle are you suggesting I stop paying for the house and hand the keys back. But just hold off on BR until the last moment, when they threaten me with court?

I'm saying that is certainly one option.

If NR know you have gone BR, then they might be tempted to do something like this.

Click ---> Help - complicated property issue after bankruptcy - MoneySavingExpert.com Forums

If they think they can sell it and then chase you for the shortfall, they might be less inclined to do so.

Perhaps just me being paranoid after reading that thread yesterday?