Money advice - opinions please.

[buzz for boys]

Hi guys,
As some of you have helped me in the past and pointed me to the cccs im hoping you can give me ur opinions on their advice a kind of what would you do !!
I was origionally advised online to do a debt management plan but several lovely people on here advised me that an iva might be a better route so I phoned up the cccs and the lady went through everything with me and pointed out that all the debt was in my name but the morgtage is solely in my husbands and the cars are also in my husbands name she therefore said the debt problem wasmine and not a joint issue and removed my hubby and his income
The advice from them was then for me as an individual to go bankrupt
This was yesterday and im now on my 2nd night of no sleep as it stands at the moment we are up to date with all payments and only asked for advice as my hubby has had his hours cut dramatically at work and i knew for the duration of this we were not going to be able to pay full payments but bankruptcy ???
The advisor said I would not lose the house or the car because they are my husbands assets and not mine - is this really true ???
I feel that i neeed to pay the money back and my friends think im mad and should take the oppurtunity to wipe my debt with both hands - please be honest what do u guys think ?? Im so confused as to what is the right thing to do and to be honest also really shocked that this is considered an option for us as I didnt really think we were that bad
Thanks guys X

 

[wilma-bride]

I would strongly advise you to think seriously about declaring yourself bankrupt. It seems that people see it as an easy solution when, in fact, it is anything but.

It's not something I'm particularly proud of but many years ago, after separating from my first husband, I had serious financial issues and was in debt to the tune of about £20,000. I struggled an awful lot and was lucky that I had some help from my Mum and Dad but bankruptcy was something I would never have considered - I was only 25 and was concerned about the long-term effects that might have if I wanted to get a mortgage in the future.

I am now debt free (apart from the mortgage) and have been for at least 10 years and, to be honest, I am scared to death of getting into debt now.

I can't really give you any advice except to say that the Citizens Advice Bureau were a huge help to me when I was having problems and urge you to consider carefully any solution which seems like an 'easy option' because, more than likely it probably isn't in the long run.

I do know what you're going through though and I really feel for you - I just wish I could offer more help

 

[joolz1910]

What a stressful situation to be in. My DH's aunt declared herself bankrupt a few years ago. I don't know much about it but you obviously can't get credit, a bank account, bank cards etc and this might prove to be a real pain in the future. It doesn't last forever and you can eventually start again. I would see bankruptcy as a last resort, when you have exhausted all other options. From what you've said, you just need your payments reduced temporarily, so that you can afford to keep paying. I'm sure that could be arranged. If the idea of bankruptcy is keeping you awake at night, perhaps that's a sign that it is not the option for you.

Good luck with your decision.

 

[jen_uk]

Just replied to your other post as well.

I really would not go bankrupt, I can't believe they advised that! When I left uni I was in debt and I contacted the National Debt Line who were fantastic, they went through everything with me and worked out how much I could afford to pay each month. They drafted letters to the creditors for me who were all happy to take the reduced payments until I got sorted. I would contact them and see what they say. Hope you work it out, I know how scary it is.

 

[irongirlof12]

I think you need to seek a 2nd opinion on this. Sometimes bankrupcy is the only way, but you need to know that your home is safe. As other have pointed out, it does affect your ability to bank etc. sending a

 

[buzz for boys]

Thanks guys I reallly appreciate the hugs everythimg just seems to be crashing round our ears at the moment.
I have spoken too the national debt advice line and they have come to the same conclusion as the cccs that the only option is bankruptcy. They seem to both think that there is no quality of life in paying into a debt management plan for over 10 years and the option of an IVA is not a viable one because over 90% of my debt is in one place ho will never agree to it anyway.
The man today was really nice and said it was time for us to enjoy our family without the stress of debt and that I should be releived
Im worried that going bankrupt is going to affect everything im going to have to rely on hubby to have a bank account and give me money
On top of all this hubby feels like its his fault and has gone on a real downer and ds is going in for his major op on the 27th which means hubby will have to have time off to care for my other 3 kids oh why is nothing simple ???
Is it time to wake up to the fact that bankruptcy is the only way and just get on with it ?? Have i really messed up that bad ???

 

[Claire L]

Bankruptcy is a major decision to make as others have said it effects your credit rating for a long time and may make it difficult to get a joint mortgage or bank account in the future. Also just make sure it doesn't effect any of the assests held in your husband's name. I take it that there are no other ways around this as you owe to less than three different companies?

Hope it all settles for the best.

Claire

 

[Gaynor]

Awww you haven't messed up these things happen. You sound very stressed, hope you get sorted soon.

 

[buzz for boys]

Bankruptcy is a major decision to make as others have said it effects your credit rating for a long time and may make it difficult to get a joint mortgage or bank account in the future. Also just make sure it doesn't effect any of the assests held in your husband's name. I take it that there are no other ways around this as you owe to less than three different companies?

Hope it all settles for the best.

Claire

We owe to just 2 companys 1 being our bank and the other a credit card company if i knew what i know now i would never have done that id have spread it all around a bit !!
My bank said this morning that if i cant afford to pay at least half of my monthly payments they would not even consider accepting a lower payment and at the moment that would be impossible !!
Its crazy I actually feel lke the bank is pushing me to go bankrupt as its so unhelpful thing is as soon as hubbys work picks up again we will be able to make full payments again - it feelslke noone is listening to that fact !!

 

[Claire L]

I have been looking through Google and several places have made a comment similar to this one -

Depending on your circumstances, you may be considered to have a beneficial interest even if you are not named on the mortgage.

So I would get advice asap from a solicitor specialising in bankruptcy as this may have an impact on your home, as you are married and probably would have paid towards some bills for the home in the past. I don't want to frighten you but also do not want you to lose more than you have to.



Claire

 

[Boss Hogg]

First off, I wouldn't feel like you've messed up, sadly these things happen. The worst thing to do is to carry on as if nothing's wrong, so facing up to the issue is the hardest thing to do.

Without knowing the intimate details it's hard to agree, or not, with what the CCCS are telling you. However, my opinion would be that if they tell you it's the best thing, then it probably is.

If the house and mortgage are in your husband's name then they are both safe so at least you can take comfort from the fact that your home is not at risk. Also, if everything else in the house is your husbands, then that is also safe.

However, there may be a chance that under a bankruptcy the Official Receiver would want to place a charging order on the property for your "share" of it - you will have (I would think) what is called an equitable interest in the property as it is your main residence - assuming you contribute to the "running" of the house. All this would in effect do would be stopping you selling the house without discussing it with the Official Receiver - if you wanted to move for example, I would imagine they would be prepared to move the charging order to the new property. Also, note that under a DMP your creditor could seek a CCJ and then go the same route, so on this issue there is little difference.

I know that there is a stigma attached to bankruptcy and that it shouldn't be considered lightly, but neither should an DMP or IVA. All three will have effect on your credit file and affect your ability to get credit in the future.

Maybe the way to think about it is to look 10 yrs down the line. If you enter a DMP or IVA it may well last that long (albeit I think IVA's rarely run longer than 5 yrs), so when you come to the end of that period the detrimental information on your credit file will stay there for 5 years (I think, or is it 6 yrs?) and will have an impact for that period. So, you could be looking at an impaired credit rating for 15 years.

If you go the bankruptcy route, you could well be discharged in 12 months (the minimum time that a bankruptcy will be "live") and then the same 5 year period will apply as far as your credit is concerned. So, theoretically you could be "clean" in 6 years.

I know that when the 12 month bankruptcy was introduced it caused an some controversy because of this very reason, but looking at the two scenarios I can see why the CCCS are recommending that route for your circumstances.

Naturally, there are other issues such as the bankruptcy being public record and like I said having the stigma attached with it, but, entering an IVA or DMP is no walk in the park either.

I agree with the guy from the CCCS, you have some unpleasant things to deal with in the coming few months (no matter which way it goes), but in 6 months time it will all be taken care of (obviously it won't have gone away but will be in some organised structure) and you won't have the worry about what to do, you'll still have your house and family and will be on the road to sorting it out over the coming years.

Hope that's helped a little, but, please don't take everything I say as absolute fact it's just my opinion on what may well happen.

As I said on the other thread, facing up to it is the hardest thing but take comfort from the fact you have and that life will carry on.

 

[Boss Hogg]

My bank said this morning that if i cant afford to pay at least half of my monthly payments they would not even consider accepting a lower payment and at the moment that would be impossible !!

I am assuming that you spoke with someone at the Bank's call centre? They are talking absolute rubbish I promise you.

A conversation with the CAB or CCCS would validate this, I've known of cases of people are paying around £20 per month on £15k+ of debt. If you use the CCCS and go their route you deal with a completely different set of people and things are a lot different.

 

[Boss Hogg]

I have been looking through Google and several places have made a comment similar to this one -

Depending on your circumstances, you may be considered to have a beneficial interest even if you are not named on the mortgage.

So I would get advice asap from a solicitor specialising in bankruptcy as this may have an impact on your home, as you are married and probably would have paid towards some bills for the home in the past. I don't want to frighten you but also do not want you to lose more than you have to.



Claire

This is the case Claire, and is more than likely applicable. However, I am pretty sure that the Official Receiver would NOT have the power to force the sale of the property, just get a charging order should a sale take place.

The best thing to do is to make a list of your queries and then call CAB/CCCS and ask about them.

The key thing to remember is that nothing will happen overnight and people will be around to help you along the way.

 

[buzz for boys]

Thank you so much boss hogg !! You made me cry but you talk a lot of sense as long as we dont lose the roofover our head I can see that it makes sense to drop the debt and start again - i cant remember the last month we didnt put something on credit *** we had ran out of money and im not talking big things sometime its been nappies and food !!
I have phoned the cccs back again and spoke to the bankruptcy specialists she said that all the info you provided was correct !! I can either accept i have equity in the house and sign the order or i can argue that i have paid nothing into the house and only pay towards the children and try to avoid this order. But to be honest ill just take the easy option and sign it I have no energy left to fight anything.
Thanks everyone you have all been fab again and i really do appreciate it !!

 

[Boss Hogg]

Thank you so much boss hogg !! You made me cry but you talk a lot of sense as long as we dont lose the roofover our head I can see that it makes sense to drop the debt and start again - i cant remember the last month we didnt put something on credit *** we had ran out of money and im not talking big things sometime its been nappies and food !!
I have phoned the cccs back again and spoke to the bankruptcy specialists she said that all the info you provided was correct !! I can either accept i have equity in the house and sign the order or i can argue that i have paid nothing into the house and only pay towards the children and try to avoid this order. But to be honest ill just take the easy option and sign it I have no energy left to fight anything.
Thanks everyone you have all been fab again and i really do appreciate it !!

Like I said it will be hard, but starting to do something about it really is to be commended. As long as you "play straight" with the Official Receiver you'll be fine and using the CCCS is good for your appearance to them.

This sort of situation is far from rare, so keep in mind you're not a bad person and that things could always be worse - a little bit of a glib statement but very true - keep your chin up and I am sure you'll get through ok.

Oh and I'm sorry I made you cry.

 

[cherjp]

Hi, having read all your posts about your situation , have you remembered to check to see if you are entitled to any more tax credits if your husbands hours have been cut. you probably have thought about this but thought i would mention just incase.to you and your family.

 

[Claire L]

Glad to hear things are now clearer for you and you can move forward. As previously said check for any tax credits you may be due if you haven't already.



Claire

 

[wicket2005]

Just sending you lots and lots of as you go through this stressful time but it will get sorted.

 

[aaronandterri]

my husbands dad had gone bakrupt at some int before his death an there was a charge on there house (he kept alll this from his wife my husbands mum) and after he died we were forced to sell the family home where his mother and younger sibling still lived to pay the charge back, ther was no negotaing and even though he had died and the bank had tansferred the house to her name it still all went through.
So please research a charge fully before you accept one, it was worded something like now they had realised enough equity in thehouse to pay the debt upon sale that the house had to be sold at that point, there was a timescale in place also that it had to be sold by or they lost there right to the charge.
It was way to long and complicated to explain but be careful and get impartial advice as well.